Kerala’s financial crisis begins to hit public; distribution of welfare pension pending for 2 months

Representational Image | File Photo: PTI

Thiruvananthapuram: Financial crisis of the state government has started to affect the common people as the distribution of social welfare pension is pending for two months. Many social welfare programmes, distribution of arrears to contractors and various aids to farmers have also been interrupted.

Disbursal of education scholarship is also halted. Implementation of most of the schemes is also at a slow pace.
The government has been trying to distribute the pending welfare pension in December. As per the data obtained from the government sources, Rs 1600 cr should be raised to distribute the welfare pensions for two months.

At the same time, payment to contractors in various departments and KIIFB is estimated at Rs 11,000 cr. Bills of 8 months produced by the contractors are not settled yet.

The government also incurred an additional liability of Rs 15,000 crore after increasing the salary and pension.

The Kerala government landed in trouble after the central government revised norms on off-budget borrowings. The state has been meeting its expenditure through borrowings. It is learnt that Kerala slipped into a deep financial crisis as the centre’s direction to cut expenditure remained only on paper.

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