THIRUVANANTHAPURAM: The cabinet meeting to be held on Wednesday will consider increasing the price of milk and liquor in the state. The proposed hike for milk is Rs 6 per litre. The government says the liquor price hike is to compensate for the loss of sales tax exemption.

The Cabinet meeting is considering the Chief Secretary's report on tax adjustment. Resumption of the social impact study of the Silverline project may also come up for consideration by the cabinet today.

The government's lavish and wasteful expenditure and the overall financial crisis of the state, along with the failure to meet the immediate needs including daily necessities including rice and welfare pensions, began to affect the people.

Contractors who are owed over Rs 11,000 crore, welfare pensioners who get Rs 1,600 per month and ordinary people who buy rations for their daily bread are moving towards starvation. Pensions of around 55 lakh people have been stopped. As the fund for the food department has been reduced from 120 crores to 44 crores, the ration has been halted since Saturday. The ration merchants have warned that they will close their shops as the commission has been halved. There is an existing arrear of Rs 50 crores in connection with last year's food kit.

To deal with the financial crisis, the government considered raising the pension age but backed off due to opposition. The Life Housing Scheme has also stalled due to lack of funds. Despite the extension of spending cuts for another year, the wasteful spending of the government has not decreased.

The economic crisis worsened after welfare and relief measures worth more than Rs 15,000 crores during Onam. The central government's restrictions on borrowing more have also tightened the state.

Misery

Prices of rice and milk are increasing

Dues of contractors crossed 11,000 crores

Local bodies are not funded.

Little assistance is provided to caregivers of inpatients.

Old age, widow, agricultural labor pension and social security pension are not paid after Onam.

Local bodies are not compensated for the loss due to GST.

No money is paid for distribution of ration and storage of paddy

Wasteful expenditure

Expensive foreign trips of ministers

Crores for luxury cars for ministers, chief whip, board chairmen and judges. Rs 35 lakhs for Khadi Board Chairman's Car

Lakhs for dental clinic and hospitality facilities at Raj Bhavan to convince Governor

Rs 90 lakhs for legal advice against the Governor

Central funds

Cente has blocked loans over a limit

Credit availability till December is only Rs 17,936 crores.

Of this, only 4,000 crores is there to be taken. This is not enough for salaries.

Central assistance including GST compensation stopped.

Rescue routes

There should be pressure to buy central subsidies

Cut down costs by eliminating priority areas

Extra funds from the Centre

Rs 5,693 crore in GST compensation arrears

Rs 8782.67 crores to meet fiscal deficit

Request to the Centre

Rs 4,060 crore in additional credit sanction

Rs 1,548 crore in GST compensation arrears

Rs 3224.61 crores as capital development assistance

Rs 2,063 crore in other central promises