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Andhra CM Chandrababu Naidu Announces ₹160 Crore Diwali Bonanza for Govt Employees Including DA

Written by: Team Angel OneUpdated on: 20 Oct 2025, 4:55 pm IST
Andhra CM announces DA release, child care leave, health insurance upgrade, and dues clearance, totalling ₹160 crore monthly payout.
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Chief Minister N Chandrababu Naidu of Andhra Pradesh has unveiled a festive Diwali package for government employees, including monthly Dearness Allowance disbursements starting November 1, 2025. This announcement comes in the backdrop of financial constraints but aims to boost employee morale across departments.

₹160 Crore Monthly Spend on Dearness Allowance from November

The Andhra Pradesh government will release one Dearness Allowance (DA) instalment from November 1, 2025, incurring a financial impact of ₹160 crore per month. This step, part of the Diwali bonanza, benefits thousands of state government employees and reaffirms Naidu's commitment to timely remuneration even amid economic challenges.

Settling Dues and Employee Benefits

The government also committed ₹210 crore towards the police department’s earned leave encashments, split into two instalments of ₹105 crore each. Additionally, promotion clearances for Road Transport Corporation (RTC) workers and property tax waivers for government employees' association buildings are part of the benefits.

Health Insurance Scheme and Child Care Leave Reforms

The health insurance system for employees will be fully streamlined within 60 days. Furthermore, working parents in the public sector can now access 180 days of child care leave before retirement, enhancing work-life balance and flexibility for state workers.

Read More:Andhra Pradesh, Google Ink ₹80,000 Crore Deal For 1 GW AI Hub In Vizag; To Create 1.8 Lakh Jobs!

Focus on Pending Dues and Financial Transparency

Naidu highlighted the clearance of ₹15,921 crore in outstanding dues to employees and said an additional ₹23,556 crore from the previous regime has been formally recorded. He contrasted Andhra’s 91% expenditure on establishments with Telangana’s 38%, Tamil Nadu’s 42%, and Karnataka’s 39%, underlining the state's prioritisation of its workforce.

Further Plans and PRC Decision Reserved

The CM urged employee unions to be patient regarding the Pay Revision Commission's (PRC) resolution, promising an announcement shortly. A Cabinet sub-committee has been entrusted with settling various employee-related matters, reinforcing the government's proactive role in addressing workforce issues.

Conclusion

Through the ₹160 crore Diwali package encompassing DA releases, property tax waivers, and improved healthcare, CM Naidu demonstrates a clear focus on employee welfare. The moves, despite fiscal limitations, strengthen the state’s administrative backbone while promising ongoing reforms tailored to public servants.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Oct 20, 2025, 11:22 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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