Hyderabad, February 27 – The government of Telangana has released ₹745 crore towards pending bills payable to government employees in the state.
At the direction of Deputy Chief Minister Mallu Bhatti Vikramarka, who is also the Finance Minister, the Finance Department released the amount on Friday.
This was the seventh consecutive month that the government had issued funds to clear the pending bills.
As part of the assurance given to employee unions, the government has been sanctioning at least ₹700 crore every month towards clearing pending bills since June last year.
Last month, the government had released ₹720 crore. In December 2025, officials of the Finance Department released bills amounting to ₹713 crore.
The state government had assured employee unions that an amount of ₹700 crore would be released every month towards pending dues of government employees accumulated during the previous government’s tenure.
By the end of June 2025, the government released ₹183 crore. Thereafter, from August onwards, a minimum of ₹700 crore has been consistently released every month.
The pending bills were related to employees' gratuity, General Provident Fund (GPF), surrender leave encashment, and advances.
In the first week of June, the State Cabinet decided to clear pending arrears of employees as on January 1, 2023, over a period of 28 months. The Cabinet sanctioned at least ₹700 crore every month to clear pending bills of employees.
The decision came after discussions the employees’ union had with the Cabinet sub-committee headed by the Deputy Chief Minister.
The employees had earlier threatened to go on strike to press their 57 demands.
The Telangana Cabinet earlier this week approved an accident insurance scheme and a cashless health scheme for all government employees and pensioners in the state.
No premium will be paid by employees and there will be no financial burden on the government for the insurance scheme, which will cover 5.19 lakh regular employees and 2.38 lakh pensioners (total 7.57 lakh beneficiaries).
Under the scheme to be implemented through banks, ₹1.2 crore compensation will be paid in case of accidental death. For natural death (up to 60 years), ₹10 lakh will be paid in addition to regular benefits.
The Cabinet also approved the Cashless Employee Health Scheme (EHS), meeting a long-pending demand of employees. The scheme will cover 3.56 lakh employees, 2.88 lakh pensioners, and their dependent family members (total 17.07 lakh beneficiaries).
Treatment will be completely cashless in all government hospitals and 652 empanelled private hospitals. This will cover 1,998 medical procedures.
