Finance dept releases ₹120 cr for payment of salaries to MSRTC staff
A government resolution (GR) authorising the release of funds was issued after transport minister and MSRTC chairman Pratap Sarnaik held a meeting with finance department officials on Friday afternoon
Mumbai: The state finance department on Friday released ₹120 crore towards payment of pending salaries for the month of March to nearly 87,000 employees of the Maharashtra State Road Transport Corporation (MSRTC). A government resolution (GR) authorising the release of funds was issued after transport minister and MSRTC chairman Pratap Sarnaik held a meeting with finance department officials on Friday afternoon.
“Managing director of MSRTC has requested to release funds towards concessions in fare for the month of March 2025. Accordingly, approval has been given to release ₹120 crore,” said the GR issued on Friday evening.
As reported by HT on April 11, when MSRTC staff received their March salaries on April 9, they realised only 56% of their pay had been credited to their accounts, leading to much anguish. Speaking to reporters on Thursday, Sarnaik had blamed the finance department, saying it had withheld funds for various sops which had affected the corporation’s revenue and led to partial payment of salaries.
Madhav Kusekar, managing director, MSRTC concurred with Sarnaik. “Our daily revenue collection is around ₹28 crore, of which 40% goes towards payments for various concessions. Most of the remaining amount is spent on fuel and maintenance of buses,” he told Hindustan Times.
Sarnaik kept up the attack on the finance department on Friday after assuming charge as MSRTC chairman, replacing IAS officer and transport secretary Sanjay Sethi.
{{/usCountry}}Sarnaik kept up the attack on the finance department on Friday after assuming charge as MSRTC chairman, replacing IAS officer and transport secretary Sanjay Sethi.
{{/usCountry}}“We are not begging but asking for funds which are our right,” Sarnaik said on Friday morning, accusing finance department staff of withholding funds for MSRTC without the consent of finance minister and deputy chief minister Ajit Pawar.
{{/usCountry}}“We are not begging but asking for funds which are our right,” Sarnaik said on Friday morning, accusing finance department staff of withholding funds for MSRTC without the consent of finance minister and deputy chief minister Ajit Pawar.
{{/usCountry}}“It is unfortunate that the file regarding funds for MSRTC does not reach the office of the finance minister. Officers of the department are taking decisions on their own, which is affecting the salary of employees,” he said.
{{/usCountry}}“It is unfortunate that the file regarding funds for MSRTC does not reach the office of the finance minister. Officers of the department are taking decisions on their own, which is affecting the salary of employees,” he said.
{{/usCountry}}Later in the afternoon, the minister held a meeting with finance department officials at Mantralaya. Principal secretary of the planning department, Saurabh Vijay, who attended the meeting in the absence of finance department additional chief secretary OP Gupta responded positively to concerns regarding pending salaries of MSRTC staff, said Sarnaik.
{{/usCountry}}Later in the afternoon, the minister held a meeting with finance department officials at Mantralaya. Principal secretary of the planning department, Saurabh Vijay, who attended the meeting in the absence of finance department additional chief secretary OP Gupta responded positively to concerns regarding pending salaries of MSRTC staff, said Sarnaik.
{{/usCountry}}“During the meeting, it was decided that the finance department will immediately release ₹120 crore out of MSRTC’s pending dues worth ₹1,072 crore. The remaining amount will be released in three phases,” Sarnaik told reporters after the meeting. He also assured MSRTC staff regarding timely payment of salaries, saying the finance department had agreed to transfer funds for salaries by the first of every month.
After the GR authorising the release of funds was issued on Friday evening, minister of state for finance Ashish Jaiswal said the state government will continue to support the MSRTC as it had done earlier.
The part payment of March salaries to MSRTC staff came amid rising concerns over cash crunch in the state exchequer. The state’s debt is projected to reach ₹9.32 lakh crore by end of the current financial year, mainly owing to populist schemes like the Ladki Bahin Yojana and free power to farmers for operating pumps.
On Friday, Shiv Sena (UBT) leader Aaditya Thackeray slammed the government over the poor state of finances and said it must come out with a white paper to clarify the situation.
“MSRTC employees have received only 56% of their salary for March 2025 and tomorrow, this could happen to employees of any department in the state government,” Thackeray said, holding the first Mahayuti government under Eknath Shinde responsible for the financial crisis.
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