₹745 Crore Lifeline: Govt Clears Employee Arrears in One Stroke

In a significant move to support government employees, the Telangana government has disbursed ₹745 crore to clear pending bills for February 2026. This release, ordered by Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka, continues the state’s phased approach to settling arrears, a promise made to employee unions.

The Finance Department confirmed that the funds will cover gratuity, General Provident Fund (GPF), surrendered leave encashment, and advances. Since June 2025, the government has consistently sanctioned at least ₹700 crore monthly to reduce accumulated dues. Alongside this, ₹389 crore has also been released to gram panchayats, strengthening local governance.

Key Highlights

• Amount Released: ₹745 crore for employee bills.
• Coverage: Gratuity, GPF, leave encashment, advances.
• Commitment: Minimum ₹700 crore released monthly since June 2025.
• Additional Allocation: ₹389 crore to gram panchayats.
• Leadership: Directed by Deputy CM & Finance Minister Mallu Bhatti Vikramarka.
• Impact: Seventh consecutive month of arrears clearance, boosting employee morale.

This initiative underscores Telangana’s commitment to financial discipline and employee welfare, ensuring timely support for its workforce.

Sources: Deccan Chronicle, Mathrubhumi English, The Hindu BusinessLine, The Hindu, Lokmat