Telangana Chief Minister Revanth Reddy openly acknowledged the state’s worsening financial crisis, admitting that his government is struggling to pay salaries to its employees on time. Speaking in the Legislative Council on Monday, Reddy urged government employees to understand the gravity of the situation and appealed to them to prioritise financial needs, given the state's limited resources.

Chief Minister Cites Severe Financial Strain on State Exchequer

During his address, Revanth Reddy said that Telangana’s fragile financial condition has made it impossible for the government to ensure that employees receive their salaries on the first day of every month. “The government is finding it difficult to pay salaries to employees on the first of every month due to the weak financial position of the state,” Reddy stated, adding that he wants to maintain complete transparency about the government’s finances.

Appealing for cooperation from government employees, Reddy said, “This government belongs to you. I will share all financial accounts with you. You decide what needs to be given and what can be postponed.” He emphasised that while he recognises the legitimacy of employee demands, especially for Dearness Allowance (DA), the current financial crunch makes it difficult to meet these demands immediately. “DA is a legitimate demand of the employees, but I request them not to insist on it in view of the present difficult financial situation,” he added.

Debt Burden Leaves Little for Development and Welfare

Revanth Reddy's remarks in the Council come just days after he publicly admitted the state’s dire fiscal condition during the India Today Conclave 2025 in New Delhi. There, he revealed that Telangana is burdened with a massive debt of ₹7 lakh crore, severely limiting its ability to allocate funds for new projects or capital expenditure.

Breaking down the monthly financial commitments, Reddy explained, “The government earns ₹18,500 crore per month. But out of this, I have to pay ₹6,500 crore in salaries and pensions, and another ₹6,500 crore to repay debt and interest every month. So, ₹13,000 crore is spent before the 10th of every month, leaving only ₹5,000 crore for welfare schemes and developmental works. I have no money left for capital expenditure.”

Call for Patience as Government Seeks to Stabilize Finances

Reddy’s candid admissions highlight the depth of Telangana’s ongoing fiscal challenges, which are now affecting the state’s ability to fulfill basic obligations such as timely salary payments. While assuring transparency, the Chief Minister made it clear that the government requires time and understanding from employees to navigate this financial turbulence.

By placing the facts before government workers and the public, Reddy hopes to foster a collaborative approach to setting financial priorities until the state can stabilise its finances. However, the delayed salaries and uncertain future of allowances like DA continue to create anxiety among employees, as Telangana grapples with an unprecedented financial crunch.