Thiruvananthapuram: Following the Centre’s decision to withhold funds citing issues in the implementation of the PM SHRI School scheme, the Kerala Finance Department has issued a prior notice to the State Education Department (SKE). The Finance Department has informed SKE officials that the scheme cannot proceed solely under the State government’s liability.

People familiar with the matter told Mathrubhumi that the government has asked for a detailed report on how the funds were spent and the number of employees working under the scheme. Officials have also been instructed to curtail the workforce, as a serious financial crisis is looming — including unpaid salaries.

With central assistance also halted, the SSK is struggling to continue supporting schooling for students from vulnerable sections.

Around ₹1,500 crore has been blocked by the Centre, prompting the State to consider approaching the Supreme Court. However, the immediate challenge is sustaining operations until the dispute is resolved.

Last year, the Centre’s share stood at ₹518 crore, while this year it has been reduced to ₹446 crore. Due to the non-receipt of even a single instalment, no new projects have been undertaken for the past one-and-a-half years. The ₹342 crore received as the State’s share was primarily used for salary disbursement. For this year, the State’s share amounts to ₹292 crore.

With two months’ salaries pending, the Finance Department recently sanctioned ₹19.77 crore. As a result, the State’s contribution remains the only source of operational funds. It is in this context that the Finance Department has issued a warning, stating that the situation is unsustainable.

Learning crisis for the weaker sections

The operations of SSK are carried out through 169 Block Resource Centres (BRCs). In the school education sector, SSK extends targeted support to marginalised communities and children with disabilities. Over one lakh differently-abled students benefit from the services of special educators, therapy sessions, and home-based education for bedridden children. Textbooks for Classes 1 to 8 are printed under the scheme, and free uniforms are distributed to BPL-category students in government schools.

Around 6,300 personnel are currently employed under SSK. If its activities are halted, the functioning of the BRCs will also be severely impacted.