THIRUVANANTHAPURAM: The state government is seeking ways to overcome the situation where Rs 1600 welfare pension of 53 lakh poor people will get defaulted. The Centre's decision to stop the Kerala Social Securities Pension Limited in taking loans caused such a situation. Subsequently, the Finance Department issued an order on June 10, 2022 cancelling the government's liability for repayment of loans.

However, Finance Minister K.N. Balagopal replied on the assembly yesterday to Mathew Kuzhalnadan's urgent motion notice that the grant and budget allocation to the pension company has not been stopped and there will be no disruption to the pension distribution. Rs 10,036 crore is required per year to provide social welfare pension. The budget allocation for the last four years is Rs 5500 crore. Only an average of Rs 1400 crore per year.

Loans were made available from Beverages Corporation, KSFE and a consortium of primary cooperatives. The loan is being repaid through the allocation in the state budget and by using the amount given by the Centre for social welfare schemes. But it is not entirely successful.

The Centre has banned excessive borrowing and setting up a separate company to cross the loan limit. It was also decided to include all loans in the public debt. Kerala, which borrows 37 per cent of its total production annually, has received Rs 5000 crore of loans this financial year.