Amidst concerns that the ongoing lockdown to contain the spread of Covid-19 would economically impact India, the government in the southern state of Telangana has decided to implement pay-cuts for government employees and pensioners.

Telangana Chief Minister K Chandrasekhar Rao held a review meeting on Monday evening on the state's finances in the backdrop of the coronavirus lockdown and pressure on revenues.

After the meeting, it was decided to cut by 75 percent the salaries of the chief minister, ministers, legislators, chairmen of various corporations and local public representatives, an official statement said.

Telangana, ruled by regional party Telangana Rashtra Samiti that is headed by Chief Minister K Chandrasekhara Rao, has become the first Indian state to opt for the pay cut ranging from ten to 60 per cent.

There will be a pay reduction of 60 percent for all-India service officers, while it will be 50 percent for state government employees.

Class IV employees, outsourcing and contract employees will face a 10 percent cut.

The salaries and pensions of all employees of all public sector corporations and government aided organisations will also be deducted by 50 percent.

Condemning the pay cut, the Telangana unit BJP said in a statement, that it was a hasty decision.