THIRUVANANTHAPURAM: Finance Minister KN Balagopal accused the central government of tightening financial restrictions in a way that makes the state unable to distribute monthly welfare pensions to beneficiaries.

The minister was responding to Wednesday’s main news published in Kerala Kaumudi which highlighted the issue.

From January to March, the state is eligible for a loan of Rs 7437.61 crore. Apart from this, the state is yet to receive Rs 5891 crores for various projects. So a total of Rs 13328 crores needs to arrive into state coffers but is delayed. Apart from this, Rs 19,000 crore was denied in loan approval. Rs 8400 crores in revenue deficit grant reduced as compared to last year. GST compensation worth Rs 12,000 crore has also been cancelled.

By reducing the tax rate from 3.58 per cent to 1.925 per cent, a difference of Rs 57,000 crore was found in the allotted money. It was in such a predicament that the state was forced to halt even the salaries of government employees.

The state has now decided to avail the benefit of the balance which could have been withdrawn in the last two years, but the Centre says that that benefit can be availed only from the next year. "They are trying to stop the distribution of welfare pensions by saying that the amount collected through the Kerala Social Security Pension Company will be reduced in the loan limit.' the minister said.