THIRUVANANTHAPURAM: The Kerala government is mulling to stop the salary cut of its employees on receiving the GST compensation cess from the Union government. The increase of the no condition loan limit from 0.5 percent to 1 percent will also aid this. The government can avail Rs 9000 crores as loan this way. It is believed the state will receive about Rs 2000 crores as compensation cess from the centre which is going to be an interim relief.

It is learnt that the centre plans to disburse up to Rs 1,10,000 crores to states as compensation cess which is likely to be decided in the GST council meeting on October 12. This way the state will at least get another Rs 7000 crores. If that's the case the government can avoid salary cuts. The government planned to cut 3 days' salary of its employees for six months thereby saving Rs 1300 crores.

There was widespread opposition even from the ruling party employees' unions which made forced the government into a rethinking on the issue. Initially six days' salary for six months was cut from government employees between April and August this year.