Hyderabad, April 24, 2026:
In a significant austerity move aimed at addressing mounting financial stress, the Telangana government has decided to slash ministers’ salaries by 50% as part of a broader strategy to clear long-pending pension dues owed to retired employees. The decision was taken during a cabinet meeting chaired by Chief Minister A. Revanth Reddy.
Major Financial Reform Initiative
According to officials, the voluntary pay cut by ministers is intended to mobilise resources and signal political commitment toward resolving the pension crisis. The state has been grappling with significant arrears in retirement benefits, causing hardship to thousands of pensioners.
Information and Public Relations Minister Ponguleti Srinivas Reddy stated that all cabinet members unanimously agreed to forgo half of their salaries. He also indicated that other public representatives may be encouraged to follow suit if necessary to support the initiative.
₹14,000 Crore Pension Burden
Government sources estimate that pending retirement dues exceed ₹14,000 crore, reflecting years of delayed payments and increasing fiscal pressure on the state exchequer.
The cabinet acknowledged that delays in disbursing pensions have caused severe financial distress among retired employees and their families. Officials stressed that pensioners should not be forced to make repeated visits to government offices to claim their rightful dues.
100-Day Action Plan Announced
To tackle the issue in a time-bound manner, the government has rolled out a 100-day action plan. Key measures include:
Establishment of a dedicated sub-committee to mobilise financial resources
Consultations with employee unions, teachers, and pensioners
Creation of administrative systems to streamline and expedite payments
The government aims to initiate the process of clearing dues within this 100-day window, marking a structured approach to resolving the backlog.
Exploring Additional Funding Options
Apart from salary cuts, the cabinet is exploring alternative funding mechanisms, including budget reallocation and financial restructuring, to meet the large-scale liabilities. Discussions are also underway with unions amid broader fiscal challenges faced by the state.
Political and Economic Context
The move comes amid increasing scrutiny over the state’s financial health and rising public demand for timely pension disbursement. Similar austerity measures have been seen in other states during financial crises, reflecting a growing trend of governments adopting cost-cutting strategies to manage liabilities.
Conclusion
The Telangana government’s decision to cut ministers’ salaries by half represents a symbolic as well as practical step toward addressing pension arrears. With a clear 100-day roadmap in place, the effectiveness of this initiative will be closely watched by employees, pensioners, and policy observers alike, as the state attempts to restore financial discipline and public trust.
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