There will be no impediment to payment of salary, Finance Minister denies reports of financial crisis

THIRUVANANTHAPURAM: Finance Minister KN Balagopal has denied reports that the government is heading for a severe financial crisis. Balagopal said the news was baseless and there would be no impediment to the payment of salaries. He added that government will pay salaries to the employees next month.

"Some secret forces are behind such reports in the wake of the Thrikkakara by-election. The central government has not yet sanctioned the loan. The Centre is the guardian of all states. We hope that the Centre would not act in a divisive manner," the minister said.

Earlier, it was reported that the state was heading for a financial crisis as the Centre failed to sanction a loan of Rs 4000 crore. The report also stated that the salaries of government employees are likely to get delayed due to the financial crisis. The minister came up with the explanation soon after the report came out. However, he confirmed that the Centre has not sanctioned the loan.