THIRUVANANTHAPURAM: The Expenditure Committee has recommended raising the pension age of employees by two years to ease the debt burden of the government. Alternatively, the committee report suggests that employees who retire at the age of 56 can then be considered for reassignment for four years without giving benefits at that time.
The committee of former GIFT director D Narayana reported to the finance minister last week. Dr Nirmala Padmanabhan and Dr. D Shaijan are the other members. The report was tabled by the Finance Minister in the Assembly yesterday.
The committee also recommended that revenue should be increased or the cost of salaries and pensions reduced to ensure the financial security of the state while government employees expect salary reform. The state is in serious debt. Public account debt should be controlled. Ensure that the borrowing limit is within 3% of GDP. Public debt stands at Rs 2.5 lakh crore. Special arrangements should be made to control debt every year. The committee also pointed out that there was a liability of Rs 77,397 crore in the public account.
60.88% of the revenue expenditure is used to pay pensions, salaries and interest. The announced projects could not be implemented due to lack of funds. Kerala's economic growth is in a downward trend. Revenue expenditure has increased by 13.34% over seven years, while revenue growth grew by only 10%. Interest expenses increased by 15 percent and pension expenses by 12 percent. Although the growth in the central share is declining, the central grant and GST compensation to cover the revenue deficit are increasing. This is not a reliable income. The report also said that public account liabilities should be reduced to control debt.
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