Financial crisis getting worse after Onam; situation to worsen if loans are not available

THIRUVANANTHAPURAM: The financial crisis in Kerala has worsened with the end of Onam. The arrears are piling up despite spending around Rs 15,000 crore to clear the arrears of various benefits, including one instalment of welfare pension. The lack of credit will aggravate the situation.

From 2021 onwards, benefits including DA are due to government employees. 22% dearness allowance is to be paid. The arrears due to non-payment of DA alone amount to around Rs 10,500 crore a year. The salary pension revision arrears have not been paid for three years. The present policy of the government is that the arrears will not be paid if welfare benefits are sanctioned. With the addition of treasury regulation, the arrears are sure to increase.

The non-availability of loans is putting the government in crisis. It has been allowed to borrow Rs 37,512 crore this fiscal. Of this, Rs 21,253 crore, which could have been taken till December, was taken in early September itself. The remaining loan amount can be taken in January. The Centre has allowed Rs 4,200 crore to be borrowed for Onam expenses. With the end of Onam, the financial crisis has intensified again. That is why treasury control had to be tightened.

Dues Rs 29,133 crore

Pay revision................................ 2000

Pension reform........................... 600

Welfare pension......................... 3600

D.A., D.R...................................... 18000

Life Mission................................. 220

Contractors................................ 2500

Supplyco.................................... 463

Jal jeevan Mission.................... 950

Karunya .................................... 500

Aswasakiranam........................ 30

Scheduled Caste and Scheduled Tribe scholarships, wildlife attacks, cancer, tuberculosis, leprosy and Thanal scheme...................... 300

(amount in crores)