Hyderabad: A striking revelation emerged during a conference on the 16th Finance Commission recommendations organised by the Centre for Economic and Social Studies (CESS) in Hyderabad. Telangana Chief Secretary K. Ramakrishna Rao on Wednesday said the state’s monthly salary and pension bill has increased fourfold over the past decade, reaching nearly ₹6,000 crore per month.
He noted that the sharp rise in expenditure has led to an unusual situation where some senior sanitation workers and drivers are drawing higher salaries than IAS officers and even the Governor, significantly increasing the state’s financial burden.
Salary and Pension Outgo Sees 300% Rise
When Telangana was formed in 2014, the state’s monthly salary and pension expenditure stood at around ₹1,500 crore. Over the years, this figure has risen by nearly 300 per cent, crossing ₹6,000 crore per month.
The Chief Secretary attributed this surge primarily to repeated pay revisions in the power sector and various government agencies. He pointed out that in the electricity department, even the salary of a Chief Engineer has reached ₹7 lakh per month. Meanwhile, sanitation workers with 30 years of service are earning nearly ₹2 lakh per month, and drivers are drawing over ₹1 lakh.
In the Greater Hyderabad Municipal Corporation (GHMC), nearly 2 per cent of regularised sanitation workers receive an average salary and allowances of ₹70,000, which is significantly higher than the ₹28,000 paid to entry-level employees.
Pay Revisions and Allowances Driving the Spike
According to officials, frequent pay revision commissions have played a major role in the escalation. The increase in ‘fitment’ percentages and dearness allowance has steadily raised fixed expenses. These revisions often align with election cycles, offering benefits to employees but sharply inflating the state’s committed expenditure.
In particular, salary revisions in the power sector, which occur every four years, have significantly altered the pay structure, resulting in certain employees earning more than top administrative officials in the country.
Mounting Financial Pressure on the State
The disclosure highlights that a substantial portion of the state’s revenue is now absorbed by salaries and pensions alone. While higher earnings provide relief to employees, the disparity where sanitation workers and drivers out-earn senior officials raises serious administrative and fiscal concerns.
With fixed expenses climbing rapidly, the Telangana government faces mounting challenges in allocating funds for development projects and launching new welfare schemes.
