Received 4000 crores from Centre; salary and pension won't get delayed, temporary relief in financial crisis

THIRUVANANTHAPURAM: The treasury has recuperated from the overdraft as the state received Rs 4000 crores from the Centre. As a result, the distribution of salaries and pensions won't be delayed. This Rs 4000 crore comprises of tax share of Rs 2736 crore and an IGST share. The Finance Department is also considering other ways to overcome the financial crisis. Efforts are being made to bring more money to the treasury for this.

The state government has hiked the interest rate on treasury fixed deposits with tenors of 91 days to 180 days from 5.90 per cent to 7.5 per cent. This benefit will be available for deposits made from March 1 to 25. The current rate is 5.4 percent for deposits up to 90 days, 6 percent for deposits from 181 to 365 days, 7 percent for deposits from one year to two years, and 7.5 percent for deposits above two years. There is no change in this.

The state needed more than Rs 22,000 crore to overcome the financial crisis in March due to reduced credit availability of the state government and reduced funds from the central government. The Centre had assured that it would provide Rs 13,608 crores. The state increased the interest on short-term treasury deposits to find the rest of the amount. The finance department is also trying to raise more money from cooperative banks and government-run institutions.