The Telangana government on Wednesday decided to hike the monthly pension for various categories of beneficiaries from Rs 1,000 to Rs 2016.

The decision was taken at the state cabinet meeting, chaired by chief Minister K Chandrasekhar Rao.

The meeting, which ended on Wednesday night, took the decision on increasing the pension to implement the poll promise of Telangana Rashtra Samithi (TRS).

It is decided to increase the pension from Rs 1,000 to Rs 2,016 to old age people, widows, toddy workers, handloom workers, single women, filaria- affected persons and people with AIDS.

The pension for the differently abled and aged artistes has been increased from Rs 1,500 to Rs 3,016 and this will be implemented from June.

The hike in pension would cost the state exchequer Rs 12,000 crore per year. The state government will bear Rs 11,800 crores while the Centre will spend Rs 200 crore.

The documents relating to increased pension amounts will be distributed among beneficiaries in all Assembly constituencies from July 20. Ministers, MPs, MLAs, MLCs, Zilla Parishad chairpersons will participate in the programme.

The cabinet has also decided to reduce the old age pension scheme eligibility age from 65 to 57 years in tune with the promise made in TRS election manifesto. The cabinet has instructed the officials concerned to prepare the list of persons of 57 years of age.

The cabinet gave approval to the draft of new Municipal Bill. The CM will introduce the draft bill in the Legislative Assembly on Thursday. Both the Houses will debate and pass the bill.