Financial crisis: Govt demands Rs 2500 crores from welfare boards
Thiruvananthapuram: The state government is on fire to figure out new sources to meet the fiscal year-end expenses amidst financial crisis. Thus, the government has decided to receive money from welfare boards besides cooperative banks.
Finance minister Thomas Isaac held talks with the representatives of toddy-tappers, construction workers, motor-vehicle workers and so on. Government expects to get Rs 2500 crores from welfare boards. Authorities of finance department are also contacting authorities of other boards to find money.
The government has demanded Rs 5000 crores from cooperative banks. FM Thomas Isaac also had held talks with representatives of employee’s cooperative societies. Though there was a positive response from the talks, the societies have not delivered the money yet.
To seek the help of cooperative banks, a meeting of representatives of cooperative banks will be held. Money from cooperative banks is expected to reach treasury by March 10. With this amount, essential bills will be cleared by March 31. Remaining bills will be paid off in April.
Owing to the financial crisis, the trend of postponing the expenses of March to the next fiscal year has been in practice for few years. Probabilities point to repeat the trend this year also. Since the new fiscal year begins by April, money taken as debt could be used to pay expenses.
Last year, the Centre had blocked the move to loan Rs 7,000 crore. This year, the government had planned policies aiming 20 percent increase in the income through GST. Contrary to that, it didn’t happen but also the government spend extra money for flood related expenses from the budget.