Relief to govt. staff, Naidu gives nod to clear ₹7,358 crore pending dues

Chief Minister N. Chandrababu Naidu has given the green signal for the release of pending bills amounting to ₹7,358 crore to government and retired employees, providing significant financial relief across the State.

During a review meeting with Finance Department officials on Thursday, the Chief Minister assessed the status of pending payments inherited from the previous government. He sought details on the implementation of earlier directives regarding the clearance of employee dues and emphasised the need to expedite payments based on fund availability.

Officials informed the Chief Minister that steps have been initiated to release entire ₹7,358 crore, with a portion already disbursed. As part of the process, ₹1,848 crore towards provident fund dues has been directly credited into employees’ accounts. Additionally, payments to the tune of ₹76 crore under Group Life Insurance have been completed for 4,793 beneficiaries.

The government is also in the process of clearing ₹3,411 crore in gratuity dues and ₹1,800 crore towards leave encashment for retired employees. Further, ₹223 crore related to additional surrendered leave in the Police Department is being processed, with officials assuring that these payments will be completed within the next two days.

Officials noted that this marks one of the largest single-phase disbursements to employees following the “Talliki Vandanam” initiative, underlining the government’s commitment to addressing long-pending financial obligations.

The Chief Minister directed that all pending bills, including those related to employees and other sectors, be cleared in a phased manner depending on fund availability. Discussions during the meeting also touched upon issues faced by employees in the previous regime, where delays and diversion of funds had caused financial distress.

In the same meeting, Mr. Naidu reviewed payments due to contractors and suppliers. Officials reported that ₹614 crore has already been released to small contractors and material suppliers across departments. Mr. Naidu instructed that priority be given to small contractors in the bill clearance process, recognising their financial vulnerability.

Reiterating the government’s commitment to financial discipline and welfare, Mr. Naidu emphasised that timely payments would not only support employees and contractors but also boost overall economic activity in the State.