Teachers’ body urges A.P. government to clear ₹35,000 crore in pending dues

Leaders of the Navyandhra Teachers’ Association (NTA) on Saturday (April 4, 2026) urged the State government to adopt a structured and time-bound mechanism to clear approximately ₹35,000 crore worth in pending dues to government employees and pensioners in the State.

In a statement, the association’s State president K. Harikrishna and general secretary M. Sreenivasa Rao said that the dues include arrears of Dearness Allowance (DA), leave encashment, medical reimbursements, retirement benefits, and other admissible claims.

While voicing concern over the prolonged delay in payments, the association acknowledged the State government’s difficult fiscal position, noting that public debt had crossed ₹7 lakh crore, making immediate full settlement financially challenging. However, it stressed that continued delays in releasing legitimate dues were causing severe financial hardship to employees and pensioners, particularly retirees and families of deceased staff.

To address the issue without overburdening the State finances, the association leaders proposed a multi-pronged settlement model spread over two to three years. They suggested clearing dues in phases with an annual allocation of ₹12,000–₹17,000 crore, while giving priority to pensioners, low-income employees, and families of deceased employees.

A key recommendation is the introduction of Employee Dues Bonds (EDBs)—government-backed, tax-free bonds with a maturity period of three to five years and an interest rate of 6–7.5%. These bonds could be made tradable and eligible as collateral, allowing employees to obtain loans from nationalised banks at concessional rates, thereby ensuring immediate liquidity, they said.

The NTA leaders also suggested optional welfare measures such as allotment of government land or housing plots in lieu of dues, creation of a dedicated non-lapsable Employee Welfare Fund and statutory backing to ensure mandatory budget allocations each year. Additionally, they recommended forming a transparent monitoring committee comprising union representatives, a financial expert and a former Chief Secretary to oversee quarterly progress.

The Association urged the government to adopt this balanced and structured approach to provide timely relief to employees while maintaining fiscal discipline and financial stability.