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Telangana Clears Rs 745 Crore in Pending Employee Bills This Month

The Telangana government has released Rs 745 crore to clear pending bills for state employees, marking the seventh straight month of such disbursements. This action follows an assurance to employee unions to release at least Rs 700 crore monthly towards dues accumulated under the previous administration. In a related move, the state cabinet also approved a new accident insurance scheme and a cashless health scheme for all government employees and pensioners. These schemes will provide significant financial coverage without any premium cost to employees or additional burden on the government.

Key Points: Telangana Releases Rs 745 Crore for Employee Pending Bills

  • Rs 745 crore released for pending bills
  • Seventh consecutive monthly payment
  • New accident & health schemes approved
  • Covers gratuity, GPF, and leave encashment
  • Benefits over 7.5 lakh employees & pensioners
2 min read

Telangana releases Rs 745 crore to clear pending bills of government employees

Telangana govt releases Rs 745 crore to clear employee dues, continuing its monthly payment assurance. New insurance & health schemes also approved.

"a minimum of Rs 700 crore has been consistently released every month - Finance Department"

Hyderabad, Feb 27

The government of Telangana has released Rs 745 crore towards pending bills payable to government employees in the state.

On the direction of Deputy Chief Minister Mallu Bhatti Vikramarka, who is also the Finance Minister, the Finance Department on Friday released the amount.

This was the seventh consecutive month that the government has issued the funds to clear the pending bills.

As part of the assurance given to employee unions, the government has been sanctioning not less than Rs 700 crore every month towards clearance of pending bills since June last year.

Last month, the government had released Rs 720 crore. In December, 2025, officials of the Finance Department released bills amounting to Rs 713 crore.

The state government had assured employee unions that an amount of Rs 700 crore would be released every month towards pending dues of government employees accumulated during the previous government's tenure.

By the end of June, 2025, the government released Rs 183 crore. Thereafter, from August onwards, a minimum of Rs 700 crore has been consistently released every month.

The pending bills were related to employees' gratuity, General Provident Fund (GPF), surrender leave encashment, and advances.

In the first week of June that the State Cabinet decided to clear pending arrears of employees as on January 1, 2023, in 28 months. The Cabinet sanctioned at least Rs 700 crore every month to clear pending bills of employees.

The decision came after the talks the employees' union had with the Cabinet sub-committee headed by the Deputy Chief Minister.

The employees had earlier threatened agitation to press their 57 demands.

The Telangana Cabinet earlier this week approved an accident insurance scheme and a cashless health scheme for all government employees and pensioners in the state.

No premium will be paid by employees and there will be no financial burden on the government for the insurance scheme, which will cover 5.19 lakh regular employees and 2.38 lakh pensioners (total 7.57 lakh beneficiaries).

Under the scheme to be implemented through banks, Rs 1.2 crore compensation will be paid in case of accidental death. For natural death (up to 60 years), Rs 10 lakh will be paid in addition to regular benefits.

The Cabinet also approved Cashless Employee Health Scheme (EHS), meeting a long-pending demand of employees. The scheme will cover 3.56 lakh employees, 2.88 lakh pensioners, and their dependent family members (total 17.07 lakh beneficiaries).

Treatment will be completely cashless in all government hospitals and 652 empanelled private hospitals. This will cover 1,998 medical procedures.

- IANS

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Reader Comments

P
Priyanka N
Good news for government employees! The health scheme and insurance are a huge relief. Cashless treatment in so many hospitals is a game-changer for middle-class families. Finally, some long-term thinking for employee welfare. 👏
R
Rahul R
While clearing dues is good, why did it pile up so much in the first place? This is taxpayers' money being used to fix previous administrative failures. The focus should be on systemic reform to prevent such backlogs, not just monthly payouts.
M
Meera T
My father is a retired state employee in Hyderabad. The surrender leave encashment and GPF clearance mentioned here were pending for years. This regular payment is bringing real stability to many households. Thank you to the unions for pushing for this.
D
David E
Interesting to see a state government proactively managing its fiscal commitments to employees. The accident insurance with no premium is a smart, low-cost benefit that provides significant security. A model worth studying.
A
Anjali F
As a daughter of government employees, I know the stress of pending bills. This is a huge burden off their shoulders. The health scheme covering dependents is the best part! More power to the employees and their unions. 💪

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