Thiruvananthapuram: As Onam approaches, the financial crisis of the state government remains acute. With only ₹3,700 crore left available for borrowing until December, this is the only source of funding for the increased expenditures during Onam and for the remaining three months of the year.

Kerala was allowed to borrow Rs 21,253 crore till December. Of this amount, only Rs 3,700 crores remains to be taken. It is now uncertain how much the Center will allow after December till March. The state has informed that there is a flaw in the debt reduction by calculating the public account, including the provident fund and treasury deposits. However, the decision to change the debt limit has not yet been made by the Centre.

Supplyco has demanded Rs 500 crore. An amount of Rs 700 crore is needed to pay bonus, festive batas and Onam advance. Another Rs 600 crore is required to provide benefits, including that for the unorganised sector. The Supreme Court has handed over the case, filed by Kerala against the Central norms, for determining the debt limit to the Constitution Bench. 

As per the Chief Minister's statement, two instalments of welfare pension arrears will be paid this year: one instalment during Onam and the other during Christmas. Currently, the welfare pension is being paid monthly. A total of Rs 1,900 crore is required to cover the pension payments, including arrears, for the two months during Onam.