Government staff to get `10K in small change?

Government staff to get `10K in small change?
Highlights

According to sources, the government is consulting with the banks over the issue. The banks have assured the government that they would consider the request. If the banks agree to meet the government’s demand then they would be setting up special salary counters in public sector banks.

Hyderabad: Telangana government is making arrangements to ensure that the employees will get Rs 10,000 in small denominations when they withdraw money from their salary account in December.

According to sources, the government is consulting with the banks over the issue. The banks have assured the government that they would consider the request. If the banks agree to meet the government’s demand then they would be setting up special salary counters in public sector banks.

The state government has taken up this exercise following a demand from the employees association. The association had urged the Finance Minister that at least some portion of their salary was paid in small denominations so that they can meet their immediate expenditure like paying milk bill, payments to maid servant, cable TV charges, newspaper bill and house rent.

If the banks open special counters, employees can approach the banks for withdraws using self cheque or withdrawal slips, said an official. The banks after verifying the employees ID card can pay the small denomination notes to the extent of Rs 10,000. Initially, the government planned to open money distribution counters in all office premises but due to security reasons it was scrapped, the official said.

The government requires Rs 2,500 crore to pay salaries and pensions and Rs 1,100 crore to pay interest on loans every month. The sudden fall in state revenue by about 50 percent since November 8 had led to speculation that the government may not be in a position to pay full salary to the employees.

However, Finance Minister Eatala Rajender allayed the fears of employees by stating that the government would pay full salary in December. The government was not getting revenue from commercial taxes, excise, stamps and registration, transport departments.

Naturally, all these factors have pushed state into a financial crisis and adjusting funds to pay salaries has become a tough task, he said.Stating that the government is an employee-friendly entity, Eatala Rajender said that the government does not want to trouble it employees in any way. “If need be it will impose cut on welfare schemes and developmental activities but will ensure that employees get their salaries,” he said.

The government could adjust Rs 2,500 crore required to pay salaries and pensions for staff on December 1 by utilising the tax collections of October, that will be remitted to treasury this month, he said.

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