THIRUVANANTHAPURAM: The finance department says Kerala is passing through its worst economic crisis in five years and is pondering over ways to bring restrictions to Treasury Department.

The government is currently in overdraft and has already taken a Rs 4500 crore loan. Last year, it was only after the culmination of the Onam Festival that the government encountered an overdraft. Back then, it was a difficult run for the treasury but the government somehow steered a way out of trouble.

Apart from salary and pension, one month's arrear of welfare pension will also be distributed through Treasury on Tuesday. For this, Rs 890 crore has been approved by the finance department. It is normal for the RBI to provide loans through 'Ways and Means' plan to state governments when the coffers turn empty. A maximum of Rs 1670 crore can be allowed by the RBI to state. An overdraft happens when the state becomes unable to repay the loan within the said period. Overdraft should be tackled within 14 days time and as of now, the state government is financially decrepit and is trying for ways of solace.

CM has advised to practice austerity measures within the government. Many ministers are busy splashing government money on restoration works of their official buildings, paying less heed to CM's advice. The central government on another note has made a strict blockade on loans to Kerala which will surely make the government select modest ways to celebrate Onam this year with less money.