The governments of Maharashtra, Telangana and Odisha have resorted to staggered salary payment or pay cuts to manage cash flow as the coronavirus-induced lockdown has resulted in additional expenditure and revenue loss.
Maharashtra on Tuesday announced that it would disburse the March salary in two instalments. The percentage of payment in the first instalment varies in keeping with hierarchy, with all elected representatives from the chief minister down to the representatives in civic bodies to get 40 per cent of their salary amount.
State government officials belonging to Classes I and II will get 50 per cent of their salary, and Class III employees 75 per cent in the first instalment. Class IV employees, mostly clerical staff, and pensioners will not have to face any change.
When the second instalment will be paid will be decided at a later date, an official said.
The Odisha government on Tuesday ordered the deferment of the March salaries of the chief minister, all ministers and Class I officers.
The government will for now hold back 70 per cent of the salary amounts of the chief minister, all ministers and other elected representatives. The amount will be 50 per cent for IAS, IPS and IFS officers.
On Monday, the Telangana government had announced pay cuts ranging from 75 per cent to 10 per cent. All elected representatives from the chief minister to local body representatives will take the highest cut of 75 per cent. All central services officials with the state government will take a 60 per cent cut, and the middle and junior levels of officialdom will get half their pay.
Class IV and contractual employees will have to forego 10 per cent of their salaries and pensioners 50 per cent for March.
These state governments opted for the revenue-saving and cash flow-maintaining measures to tide over the income loss in March which usually sees a spike in collections because of the closure of the financial year.
Officials are bracing for more states following suit given the revenue loss at a time when the coronavirus outbreak has forced all governments across the country to set in motion extensive measures to counter the pandemic.
Kerala chief minister Pinarayi Vijayan has appealed to all government employees to donate a month’s salary to help the state tide over the health crisis.