Govt. staring at huge financial burden with release of DA instalments and new PRC

Conceding the employees’ demands could take salary bill close to ₹35,000 crore a year

Updated - September 08, 2026 07:02 pm IST - HYDERABAD

The State Government is staring at huge financial burden going by the rising demands from employees for release of pending instalments of the dearness allowance and implementation of the revised pay scales.

Employees staged a lunch hour demonstration at the Secretariat demanding release of five instalments of DA, implementation of old pension scheme and the pending pay revision. The State Government has spent ₹17,874 crore towards salaries or wages till July-end in the current fiscal as against the total expenditure of ₹48,358 crore budgeted for the year, according to the provisional information submitted to the Comptroller and Auditor General of India.

The salary bill has seen a consistent rise in the past few years as could be seen from the expenditure statements of the previous years. The State incurred revenue expenditure of ₹30,189 crore from the consolidated fund towards salaries in 2024-25. The amount was ₹27,883 crore in 2023-24, ₹25,178 crore in 2022-23 and ₹21,650 crore (2021-22), according to official figures.

Release of five instalments of the DA itself is likely to result in 15.43% rise in salaries of employees of different cadres and calculation of new pay scales based on the DA merged salaries will further compound the problems. The previous BRS Government has implemented interim relief of 5% along with the announcement of the previous Pay Revision Commission (PRC), headed by retired bureaucrat N. Shiva Shankar ahead of the 2023 Assembly elections.

Employees were however unhappy over the interim relief as, they claimed, it was very meagre compared to the 43% and 30% fitment benefits implemented by the previous Government during the two revisions affected during its more than nine-year tenure. Employee unions are demanding that the Government announce a higher fitment on the lines of previous revisions.

Published - September 08, 2026 07:01 pm IST

Terms & conditions | Institutional Subscriber

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.