Hyderabad: The Telangana government has cleared medical reimbursement bills worth ₹180.38 crore pending for state government employees and pensioners. The Finance Department released the amount following orders from Deputy Chief Minister and Finance Minister Bhatti Vikramarka Mallu.
A total of 26,519 employees and pensioners have received reimbursement, with bills covering the period from March 4, 2023, to June 20, 2025. The disbursal includes claims left unresolved under the previous administration. This marks the clearance of a 27-month-old backlog.
The clearance comes days after the state government announced a two-point hike in Dearness Allowance (DA) for employees and pensioners on June 13. Bhatti Vikramarka, who heads the Employees Welfare Cabinet Sub-Committee, also oversaw the reimbursement clearance.
The subcommittee, reconstituted under the Congress-led Praja Government, has resolved several longstanding employee-related issues in the past fortnight. Bhatti said the administration was committed to resolving such matters without delay, despite budgetary pressures and large-scale welfare obligations.
The ₹180.38 crore release follows a ₹9,000 crore transfer to farmers under the Rythu Bharosa scheme, completed in nine days. Medical reimbursements were processed and cleared the day after the farm transfers.
The government described the decision as part of a wider employee welfare initiative. Bhatti, referring to employees and the state as “one ideal family”, said the administration would continue addressing staff concerns through structured channels.
The June 13 Government Order hiking DA applies to around 3.5 lakh regular employees and 3 lakh pensioners. Each DA point costs the exchequer approximately ₹2,400 crore per month. The government went ahead with the hike despite the additional financial load, citing employee welfare as the priority.
In parallel, orders have been issued to expand cadre strength in the Women and Child Welfare and Planning departments. The Joint Staff Council, formed to address staff and officer grievances, is in its final stages of constitution.
Other measures in progress include population-based reclassification of village panchayats, finalisation of a comprehensive health insurance policy for employees and pensioners, and renewed momentum in Departmental Promotion Committee (DPC) activities across government departments.
Employee unions have noted the fast-paced response to multiple long-pending demands. Over 7.5 lakh government employees and pensioners have seen tangible outcomes in the span of a few days, according to union representatives.