Telangana Chief Minister Revanth Reddy on Monday admitted in the Legislative Council that the state is facing a financial crunch, making it difficult to pay government employees’ salaries on the first of every month. Addressing the Council, he urged employees to understand the situation and assured them of complete transparency regarding the state’s financial position.
“The government is finding it difficult to pay salaries to employees on the first of every month due to the weak financial position of the state,” Reddy said.
In an appeal to government employees, he said, “This government is yours. I will reveal all the accounts to you. You decide what is to be given or put on hold.”
He acknowledged that the demand for Dearness Allowance (DA) is legitimate but requested employees to not insist on it for now. “DA is a legitimate demand of the employees, but I request them not to insist on it in view of the present difficult financial situation,” he said.
This comes just over a week after Reddy candidly declared, “I have no money for capital expenditure” at the India Today Conclave 2025 in Delhi.
Speaking at the conclave, he explained that the Telangana government was in Rs 7 lakh crore debt. While it earned Rs 18,500 crore per month, substantial amounts were allocated to recurring expenses. “I have to pay Rs 6,500 crore in salaries and pensions per month. I also have to pay Rs 6,500 crore back as debt and interest per month. That means Rs 13,000 crore is gone before the 10th of every month. I am left with only Rs 5,000 crore for welfare and development. I have no money for capital expenditure,” he said.
