Unprecedented financial crisis; dues of pension and dearness allowance will not be paid

THIRUVANANTHAPURAM: The Finance Department issued an order clarifying that the state government is in an unprecedented financial crisis and therefore cannot fulfill its promise to pay the pension revision arrears and dearness allowance arrears in the financial year.

The government had promised in April 2021 that the arrears of pension reform would be paid in four installments. Two installments were paid. The installments which were supposed to be paid in August and November 2021 were not paid. It was assured that one installment will be given in 2022-23 and the fourth installment in 2023-24. The order was issued clarifying that it cannot be complied with in the current economic situation. It is guaranteed that if the financial situation improves due to an increase in tax revenue etc., payment of arrears will be considered.

• 2800 crores to pay the pension arrears and 1400 crores to pay the dearness allowance.
• Central DA rate increased from 34 to 38 percent in July 2022 with a 4 percent increase in deficit allowance. Due to this, the state employees and pensioners are yet to receive arrears of four installments.
• At present, 7 percent of the shortage allowance is being received. This is the rate as of July 2020.
• The installments of January and July 2021 and January and July 2022 are due. This will be eleven percent.
• The two installments of the DA which is currently being received are to be received.