The state government will pay the rest of the amount by December 30.

Demonetisation fallout Andhra govt employees to get half salary for this monthImage for representation
news Demonetisation Tuesday, November 29, 2016 - 09:27

After the demonetisation of high value currency, people have been facing inconvenience. In what comes as a disappointment, the Andhra Pradesh state government employees will be getting only half their salary on December 1. 

However, the state government will pay the entire amount into their bank accounts by December 30, but for now they will be paid only Rs.24,000 in the first week of the month, irrespective of their net salary. 

The Times of India reported that with the RBI being unable to pay the full salary to the employees and pensioners, it has decided to set aside around Rs 3,000 crore to clear the first week payments of the total salaries. 

Out of the total amount of Rs 3,000 crore, Rs 1,500 crore will be spared for state government employees and pensioners while the remaining Rs 1,500 crore will be for central government employees and PSU staffers. By the second week, another Rs 2,000 crore will be spared for the state government by the RBI. 

Not only Andhra, even Telangana government employees are likely to get only half their salaries for this month.

On November 12, Chief Minister K Chandrasekhar Rao asked the chief secretary and finance department officials to pay half the amount of government employees’ salaries for this month, if the situation so demands. The reason being that after demonetisation, the revenue-earning departments have seen a drastic fall in income as most transactions have come to a halt.

Normally, the state earns around Rs 3,600 crore per month through its own revenues and gets Rs 1,000 crore from the Centre. But after demonetisation, officials told Deccan Chronicle that the state’s earnings will fall by over 60 per cent, and the Centre has already imposed an over 40 per cent cut in tax devolution.