The Telangana government has disbursed Rs 745 crore to settle outstanding bills owed to state employees. This release, directed by Deputy Chief Minister Mallu Bhatti Vikramarka, marks the seventh consecutive month of such payments. Since June last year, the government has been allocating a minimum of Rs 700 crore monthly to clear pending bills, as promised to employee unions.
Last month, Rs 720 crore was disbursed, while in December 2025, bills totaling Rs 713 crore were settled by the Finance Department officials. The state government committed to releasing Rs 700 crore each month to address pending dues accumulated during the previous administration’s tenure. Notably, the government had already disbursed Rs 183 crore by June 2025, followed by consistent monthly disbursements of at least Rs 700 crore from August onwards.
The pending bills encompass various employee entitlements such as gratuity, General Provident Fund (GPF), surrender leave encashment, and advances. In a significant move, the State Cabinet in June decided to clear arrears of employees as of January 1, 2023, within 28 months. This decision, following discussions with employee unions, averted potential agitation over 57 demands raised by the employees.
Moreover, the Telangana Cabinet recently approved an accident insurance scheme and a cashless health scheme for all government employees and pensioners in the state. The accident insurance scheme, covering 5.19 lakh regular employees and 2.38 lakh pensioners, offers Rs 1.2 crore compensation for accidental death and Rs 10 lakh for natural death (up to 60 years), with no premium cost to employees or financial burden on the government.
The Cabinet also greenlit a Cashless Employee Health Scheme (EHS) to cater to 3.56 lakh employees, 2.88 lakh pensioners, and their dependents, totaling 17.07 lakh beneficiaries. This scheme, operational through banks, ensures cashless treatment in government hospitals and 652 empanelled private hospitals, covering 1,998 medical procedures.
