Government Cash Crunch Forces MSRTC Employees to Receive Only 56% of Their Salaries

MUMBAI: The current cash shortage impacting the government of Maharashtra has also had a hit on the financial health of the 87,000 staffers of the Maharashtra State Road Transport Corporation (MSRTC), receiving just 56% of their March 2025 salaries. Transport Minister Pratap Sarnaik blamed the shortage of pay to the finance department’s inability to release funds that are needed for miscellaneous subsidies like 50% concession fare for female passengers, which hit the corporation’s day-to-day collection hard.

In the wake of the financial crisis, Deputy Chief Minister Eknath Shinde stepped in, and the finance department announced that money would be disbursed by April 15. The financial woes of MSRTC have been a cause of concern for years now, and just last month, there were issues raised in the legislative council about delays in crediting employees’ provident funds and gratuity. Today, in the course of a month, the insufficient funds have forced MSRTC to disburse only 56% of the salaries of the employees.

The March 2025 salary was deposited on April 9, and we have heard many complaints from MSRTC employees in Maharashtra about this deficit,” said Shrirang Barge, general secretary of the Maharashtra ST Karmachari Congress. He further added that MSRTC required approximately ₹460 crore to clear full salaries, but only ₹270 crore had been disbursed.

Sarnaik, who was made MSRTC chairman on Thursday, faulted the finance department for the staff’s woes, emphasizing the need for their whole salary to support their household “I strongly support the ST staff in this,” he said, adding that the state government had dues with MSRTC for passenger concessions, which have defaulted on its daily incomes.“We are not seeking anything more than the legal entitlement of MSRTC.”

Since his appointment, Sarnaik pledged to sift through the corporation’s monthly accounts and arrears payable by the state government. Meanwhile, some MSRTC employees angry over being paid only 56% of their salary met Eknath Shinde in Sangola, Solapur district, on Wednesday. Responding to their issue, Shinde spoke to the additional chief secretary of the finance department, OP Gupta, who promised him that the funds needed would be cleared by Tuesday, April 15.

The crisis continues to remain fluid because MSRTC workers keep demanding full remuneration for their labor, indicating the necessity for fiscal reform within the state’s transportation network.