THIRUVANANTHAPURAM: There are indications that the state treasury, which is in a severe financial crisis, has been in overdraft for three days. The government is rushing to find money to avoid this.
The remaining loan of Rs 605 crore will be taken on Tuesday. Although it will provide temporary relief once it is received, money will have to be found for expenses as it is the last month of the financial year. An estimate of how much the treasury is in overdraft is being made. The government is trying to transfer tax revenue, reserves in affiliated institutions such as universities, local bodies, public sector undertakings, and excess loans from the participatory pension fund to the treasury.
The Chief Minister himself is going to Delhi to meet Finance Minister Nirmala Sitharaman because the crisis is severe. He is likely to go immediately after the party conference. Kerala can survive only if an urgent decision is taken on the loans.
To avoid treasury closure
The Reserve Bank's Ways and Means Advance can be taken when there is no money in the treasury account. This is temporary assistance. Kerala will get 1670 crores in this way as Ways and Means. If that is exhausted, another 1670 crores can be taken. However, the second one has to be repaid within two weeks. If this is not done, it will move towards an overdraft. The functioning of the treasury will be affected if it is not resolved.
Very few bills have been passed in the past four days. Officials said that the situation will improve by Monday. It is said that the salaries of employees including teachers were not paid yesterday due to the treasury being in debt. There will be no treasury transactions since today and tomorrow are holidays.
At least Rs 25,000 crore will have to be found for the expenses of the month of March. The Centre has assured that it will allow a loan of 0.5% of the gross domestic product in the name of reforms in the electricity sector. If it is granted, Kerala will get Rs 5,500 crore. About Rs 10,000 crore can be taken on the assurance of the reserves in the treasury. Although an application was made for this, the Centre has not responded. It is in this situation that the Chief Minister is intervening.
