Treasury in overdraft; prior approval needed for bills above Rs 5000; restriction till June 15 

THIRUVANANTHAPURAM: Control in the treasury has been increased. From today, bills above Rs 5000 will need prior approval. Till now the limit was Rs.5 lakh. This is applicable only for passing bills. Other transactions are not restricted.

Treasury is in overdraft. 3500 crores will be borrowed today. While the overdraft will change when this is received, the distribution of salary, pension, social security pension etc. will start by the end of this week. The restriction is till June 15 considering this. The treasury will be reduced to virtually nominal activity.

5000 crores are needed for salary pension distribution and 900 crores for social security pension distribution. Essentials are exempted from the regulation. The Treasury has been in overdraft since the beginning of the financial year. Kerala was expecting a loan of Rs 44528 crore but instead got a loan sanction of Rs 21253 crore. 6500 crore has already been taken out of it. Only 14753 crores are remaining. There are fears that the financial crisis will intensify in the coming months.