Pay all arrears due to employees

The government cleared substantial arrears, including about Rs 10,000 crore of Sixth Pay Commission arrears and some dearness allowance instalments, but large dues remain outstanding amid acute fiscal stress. Multiple DA instalments and retiree arrears stayed pending into 2025-26, drawing employee protests and Assembly criticism; the Chief Minister repeatedly tied payment to improving finances. The commitment to pay all arrears is therefore partly met. Budget: arrears are a major inherited liability; partly cleared, with the balance constrained by OPS costs and the reduced Revenue Deficit Grant.