In a significant move aimed at addressing the long-standing issue, the Telangana government has released Rs 720 crore to clear pending bills for its employees. The funds were disbursed by Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka on Saturday, January 31.
The release marks a significant step in the government’s commitment to resolving the financial backlog inherited from the previous administration. According to the government, more than Rs 700 crore was allocated each month towards outstanding dues of government employees accumulated during the tenure of the previous government. Since June 2025, at least Rs 700 crore has been released every month.
The government has also cleared the entire pending amount of surrender leave encashment spanning from 2022 to February 2025 in a single instalment. The funds aim to clear the pending bills for January.
Deputy CM Vikramarka emphasized that the ‘People’s Government’ is committed to its assurances, utilizing a dedicated green channel to ensure systematic monthly releases of employee funds without bureaucratic delays. This mechanism prioritizes employee-related payments and expedites the movement of funds for salaries and pending bills through the treasury.
The issue of pending bills has been a contentious point for Telangana’s workforce for several years, with retirees often waiting months for their gratuity, and serving employees facing hurdles in accessing their own GPF savings or encashing surrender leaves during the tenure of the previous government. To restore financial discipline, the current government established a Green Channel mechanism focused on employee-related payments.
The initial release of Rs 183 crore took place in June 2025, followed by a commitment to releasing a minimum of Rs 700 crore every month from August 2025 onwards. This move is expected to alleviate the financial burden and bring relief to the state’s employees.
