Thiruvananthapuram: Amidst acute fiscal crisis, the state government will reportedly be using money from Welfare boards to meet the daily expenses. It has decided to withdraw Rs 1700 crores in this manner. The money will reach the treasury this week itself.

Rs 1200 crores will be taken from the Motor Transport workers welfare fund and Rs 500 crores from the Toddy tappers welfare fund board. This will be accepted as a short-term fixed deposit in the treasury. 

Money has been requested from more welfare boards but many of them are in crisis of their own. Rs 1000 crores erroneously collected by the Income Tax department is due to the Beverages Corporation. If they receive this, they might pay the government. 

This move has been made by the government due to the Onam expenses and to avoid running out of money for other transactions. This year, only about Rs 2000 crores is remaining of the loan sanctioned by the Centre.

The treasury transaction limit has been reduced to Rs 5 lakhs to cover Onam costs. Most bills except the special expenses incurred during Onam have been postponed. There has been no further easing of control on the Treasury. However, government sources said that it is hoped that the money from the welfare funds will aid in passing necessary bills.

During previous government rule also, money was regularly sought from welfare boards to deal with the financial crisis. However, when the Centre decided to include such borrowings in the state’s credit limit, the government was forced to control this.

Even when the economic situation is extremely bad, the state cannot afford to make such temporary arrangements. However, if this money is returned to the welfare board by December, the state’s credit limit will not be affected.