Corporations in crisis after paying pensions; developmental activities affected

Kozhikode: The government owes crores to municipalities and corporations of the state as pension and benefit dues. Kozhikode, Kochi and Thiruvananthapuram corporations alone have dues amounting to Rs 585 crore. This has started affecting developmental activities.

Corporations and municipalities used their general purpose grants and own funds to pay pension payments. However, with outstanding dues accumulating, numerous entities have halted their government payments.

Kozhikode corporation is grappling with Rs 150 crore in pending dues since 2012. 681 people receive pension and other benefits here. In Kochi, the dues amount to Rs 250 crore and Rs 185.56 crore in Thiruvananthapuram.

People who have retired from other municipalities also receive pension from corporations. As per a government order issued seven years ago, pensioners can apply for pension from any other municipalities regardless of their place of retirement.

Municipalities tend to have lesser funds when compared to corporations. This is why even those who retired from other districts apply for pension in Kochi, Kozhikode and Thiruvananthapuram corporations. The Kozhikode corporation has requested the government to reconsider this provision.