9200 crores needed for Onam; celebration without extravaganza considering Wayanad disaster

THIRUVANANTHAPURAM: Onam celebrations will be less extravagant this year in the wake of the Wayanad disaster. With the centre turning its back, it will be difficult to find money for the onam expenses, but the government hopes that it will be able to fulfil the essentials.

No matter how much the expenses is reduced, at least 9200 crores will be needed for Onam. The government is estimating that if it takes 2800 crores from its own income, 1600 crores from the centre and 2500 crores as a loan, it will be able to meet Onam expenses. There will still be a small deficit. 3700 crores is left in the loan limit. The government may have to tap into credit availability from January to March like last year to finance the expenditure up to December.

The government can easily overcome the Onam expenditure if it receives Rs 3,000 crores to be received from the Centre. The centre may provide it in the current scenario. The finance department estimates that the remaining small deficit can be overcome through domestic borrowing.

The government's assessment is that the effort to prevent the financial crisis from affecting people's lives by increasing private income and reducing expenditure has been successful. The government is confident that it has been able to stop borrowing from exceeding the limit in the last three years. Credit was 39% of GDP in previous years, but now it has been reduced to 33%.

3330 crores for Onam Salary

700 crore: For Onam advance and festival allowance

500 crore: For Onam markets

910 crore: For welfare pension

910 crore: Welfare pension; to pay an additional instalment

2170 crore: Service Pension

650 crore: For other sectors

60 crore: to KSRTC