THIRUVANANTHAPURAM: Centre is putting Kerala in a crisis by not issuing the loan approval document even two months after the start of the new financial year. It is usually given in the month of April itself. Kerala is waiting after sending a letter. This is the notification issued by the Centre determining how much loan can be taken this year and what the limit is till December. Kerala can take a loan only after getting this notification. The understanding is that this year a loan of 37512 crores can be taken.

A temporary loan sanction of Rs 5000 crore was requested in the month of April but only Rs 3000 crore was granted. The annual loan notification should have followed. The Code of Conduct of Elections is not a hindrance to this. The state had challenged in the Supreme Court the central stand of not allowing eligible loans. It was left to the Constitution Bench. During the trial, the Centre had said that the loan can be sanctioned if the case is withdrawn but the state did not give in.

16638 people are retiring in May. A large majority of those who will end their service this year will retire then. 9151.31 crore will be required to provide the benefits. 5500 crores should also be found in addition to pay salary and pension. These demands can be met only if at least Rs.5000 crores are found as loans.

The government is looking at options to extend the time for giving benefits to retirees. The move is to convert the benefit into treasury investment and then pay it as soon as the money is available. There is also a plan to increase the retirement age.