AP, TS heading for bankruptcy over PRC recommendations

Hyderabad, Jan 29, 2015:Both AP and Telangana Governments are in a fix over hiking salaries of their employees as per the 10th Pay Revision Commission's (PRC) recommendations as implementation of 29 per cent hike would drain away their revenues further. While the employees in the two states have been demanding 69 per cent hike, PRC has recommended a hike of 29 per cent with minimum and maximum pay being Rs.13,000 and Rs.1.10 lakh per month respectively. It is a fact that 60 per cent of the revenues of the two states are utilised for the payment of salaries. The hiking of salaries by 29 per cent now will further cost the exchequers of the two states by Rs. 3500 Cr each. While the total annual revenues of TS are put at Rs. 35,000 Cr , the salary payments are estimated at Rs. 18, 400 Cr . In case of AP, the salary bill is put at Rs. 22, 000 Cr. As per the recommendations of the PRC, both governments have to pay arrears with retrospective effect from July 2013. This will put an additional financial burden of Rs. 30,000 Cr on each of the states. Governments in the two states feel the implementation of the PRC recommendations will push them towards total bankruptcy with no funds being left out for implementation of welfare programs. They have begun consultations with employees' unions asking them to accept lesser pay hike keeping in mind the delicate financial position.