Salary, pension bills eat up 38% revenue

Salary, pension bills eat up 38% revenue

T Expected To Complete Promotions By Jan 31

Jump In Spend On Welfare Schemes In Last 4 Yrs

Koride.Mahesh@timesgroup.com

Hyderabad:28.01.2021

The state government has been spending about 38% of its revenue expenditure on payment of salaries and pensions to the government employees along with other establishment expenditure. The amount is nearly 40% of the state’s own revenues that is generated through GST, excise, property registration and other sources.

The figures have been incorporated and shown in the Pay Revision Commission (PRC) report that was made public on Wednesday. “Compared to other states such as Punjab (49.3%), Kerala (48%) and Maharashtra (41.7%), Telangana expenditure on salaries and pensions is less as the per the figures available of 2016-2017 financial year. While revenue expenditure was ₹81,432 crore, about ₹31,000 crore was spent on salaries and pensions (38%),” the PRC committee headed by retired IAS officer CR Biswal stated in the report.

Official sources said the expenditure on salaries is directly related to the revenue of the government and expenditure. “If the revenue dwindles, the per cent of the salaries of revenue expenditure goes up. Similarly, when revenue is more, the salaries and pension component goes down. For instance, in 2017-2018, the salaries per cent was 41% due to growth in the state revenues, the 2019-2020 budget estimations projected it as 38%, which may change after getting actuals,” a senior financial official explained.

As per the budget reports, the state revenue in 2014-2015 was ₹51,000 crore including the state’s own revenue and central share, now it is likely to touch ₹1,13,100 crore in 2019-2020, going by the government’s estimations. But the government is expecting a huge dent in the revenues due to Covid-19 and lockdown. “The commitments of the state government are likely to increase significantly following the introduction of new welfare schemes, financial restructuring of discoms and implementation of Right to Food Act. The financial requirements for new commitments on welfare schemes and infrastructure projects pose a major challenge to the state finances,” the committee said in its conclusion.

Meanwhile, chief secretary Somesh Kumar directed secretaries of various departments to complete the promotions by January 31 as per the directions of chief minister K Chandrasekhar Rao.