THIRUVANANTHAPURAM: The Kerala Chief Secretary told the High Court on Wednesday that the state was facing a serious financial crisis as it cannot find money even for daily needs. The Chief Secretary made this disclosure in court in connection with the case about the stagnation of pension distribution in KSRTC. The High Court replied that the government should give priority to those who are suffering rather than the celebrations.

Later, the Chief Minister came out alleging that the state government was facing extreme attacks from the central government on the financial front. He also said that the state suffered a shortfall of Rs 57,400 crores in its revenue through this. The Chief Minister also announced that the state would file a case in the Supreme Court against the central government's financial neglect.

The Centre had allowed the state to avail loans up to Rs 21,852 crores till December this year. he state has already borrowed Rs 21,800 crore. It can now borrow only 52 crore till December. Economic experts suggest that urgent central assistance is the only way to overcome the crisis.

The Centre had reduced the borrowing limit by including the loans taken for KIIFB and welfare pension under the public debt. Kerala can borrow three percent of its total production. The crisis was exacerbated by the central government's denial of Rs 40,000 crore, including Rs 12,000 crore due to the suspension of GST compensation, Rs 8400 crore in revenue deficit grant, a reduction of Rs 14,000 crore in loans and a reduction of Rs 6,000 crore in central grants.

Many people waiting for money

• Rs 16,000 crore of PWD contractors
• Social welfare pension of four months
• Pension and salary revision arrears
• 5 DA of government employees
• 19 social security assistance including for endosulfan disaster victims
• Building welfare fund pension arrears of 11 months for 3.86 lakh people
• Pension revision for 9832 people in the Water Authority
• Retirement benefits for 450 employees of KSEB
• Pension for three months for 45000 people in KSRTC
• 3700 crore to Supplyco
• 600 crore to depositors in KTDFC

Indisciplined financial management in the past

1. The state's revenue is 1.36 lakh crore, as per the budget. Of this, Rs 1.30 lakh crore will be used to settle debt and pay salaries and pensions.
2. The state carries out all other expenses, including social welfare, health, road construction and other development activities, by borrowing. Thus, the debt increased to 3.24 lakh crores.
3. It is assessed that the crisis was caused by indisciplined financial management in the past