Telangana Government’s rising expenditure on salaries, pensions and subsidies limits developmental spending: Study

A survey has pointed retired Telangana State Government’s rising expenditure for outgo of salaries, pensions and subsidies (part of payment schemes) arsenic they relationship for a large chunk of budgetary allocations and successful turn, permission small abstraction for different developmental spending.

Telangana’s expenditure connected wages and salaries

The study, “State Finances: A survey of budgets 2025-26” by the Reserve Bank of India (RBI), says the State’s expenditure connected relationship of outgo of wages and salaries successful antithetic categories is acceptable to transverse ₹63,000 crore and scope ₹63,344 crore going by the fund estimates of the existent fiscal year. The magnitude includes committed expenditure similar salaries arsenic good arsenic payments that are being made to antithetic categories of employees similar enactment charged staff, grant-in-aid employees, location guards, regular wage workers and contract/outsourcing workers. The spike successful the expenditure implicit the past decennary tin beryllium seen from the information that expenditure connected wages and salaries was ₹10,801.4 crore successful 2014-15, the twelvemonth of Telangana’s enactment and roseate gradually to scope the contiguous levels.

Jump from ₹36,161 crore to ₹60,908 crore

A large leap successful expenditure was registered successful 2022-23 to 2023-24 erstwhile it roseate from ₹36,161 crore to ₹60,908 crore, according to the RBI data. The emergence tin beryllium attributed to the implementation of the fitment payment of 30% to each categories of employees implicit and supra the quantum recommended by the Pay Revision Commission headed by retired bureaucrat C.R. Biswal.

Rise successful pension payments

There has besides been important emergence successful pension payments which person been exceeding fund estimates since the past fewer years. In the fiscal twelvemonth 2023-24, for instance, the Government allocated ₹13,024 crore for pensions successful the fund estimates, but the existent payments were ₹16,841 crore astatine the extremity of the fiscal. The aforesaid was the lawsuit with the existent twelvemonth with pension exceeding the fund estimates of ₹13,109 crore and reaching ₹14,126 crore by December end, according to the provisional information submitted to the Comptroller and Auditor General of India.

Subsidies

Subsidies, a large chunk of which is consumed by the escaped powerfulness to agriculture sector, excessively person grown manifold. From ₹6,303 crore successful 2018-19, the subsidy load enhanced to ₹21,237 crore arsenic per the revised estimates of 2024-25 and ₹21,347 crore projected successful the fund estimates of the existent fiscal.

Telangana’s expenditure connected wages and salaries

Telangana’s expenditure connected subsidies