Naidu Announces Diwali Bonanza for Andhra Govt Employees: ₹160 Crore DA, Leave Encashment, and Promotions

In a major Diwali gift to lakhs of state government employees, Andhra Pradesh Chief Minister N. Chandrababu Naidu on Saturday announced the release of a Dearness Allowance (DA) instalment worth ₹160 crore, effective from November 1. The move, coming despite the state’s tight fiscal situation, underscores Naidu’s effort to restore confidence among employees and streamline welfare measures.

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DA Release and Leave Encashment for Police

Speaking to reporters at his Camp Office in Undavalli, Naidu said that a total of ₹160 crore would be disbursed as DA arrears. Additionally, the government will clear surrender leave payments to police personnel in two phases — ₹105 crore in November and another ₹105 crore in January.

Naidu emphasized that the decision reflects the government’s recognition of the workforce’s contribution to implementing welfare and development programmes.

“Even though the State’s financial position is difficult, employees are the backbone of our administration. Their welfare remains our top priority,” the Chief Minister said.

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New Benefits and Administrative Reforms

The Chief Minister unveiled several other measures aimed at improving employee welfare and administrative efficiency:

• Medical care system for employees to be completely streamlined within 60 days.

• Child care leave of up to 180 days can now be availed until retirement, offering greater flexibility for working parents.

• Pending promotions for APSRTC staff to be cleared soon.

• Property tax waiver for employee association buildings across the State.

• Decision on the new Pay Revision Commission (PRC) to be taken later, after a financial assessment.

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Financial Reality and Future Promises

Naidu acknowledged that the State’s financial health remains fragile, blaming what he termed as “poor fiscal management” by the previous government. He revealed that ₹51,452 crore is currently being spent on establishment costs — a figure that neighbouring states managed to reduce over the last five years.

“We are committed to correcting fiscal imbalances while ensuring that employees’ legitimate dues are cleared. This Diwali announcement is a small step towards rebuilding trust,” Naidu said.

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GoM Holds Talks With Employee Unions

Earlier in the day, a Group of Ministers (GoM) — comprising Finance Minister Payyavula Keshav, Civil Supplies Minister Nadendla Manohar, and Medical & Health Minister Y. Satya Kumar Yadav — met representatives of several employee unions at the Secretariat.

The GoM assured that long-pending demands — including arrears, promotions, and working condition reforms — would be resolved in a phased manner despite fiscal constraints. Following the discussions, the ministers accompanied the union leaders to meet Naidu, where the DA announcement was formally made.