Kerala govt distance itself from social security pension firm

Representative Image | Photo: ANI

Thiruvananthapuram: The Kerala government distanced itself from the loans of Kerala State Social Security Pension Limited (KSSPL), formed in 2018 to avoid the delay in pension dispensation even if the government has financial constraints.

In a June 10 order, the state government stated that it longer offers security to the loans of the KSSPL.

The move is merely technical, claimed the officers. Following recent Comptroller and Auditor General's comments on the out of the budget borrowings of the state, the union government has been warning the state that it would include such loans in the limit allowed for the state. KIIFB has the major share of such loans. KSSPL has borrowed around Rs 30,000 crore over these years. The order is a move to secure the legal side in the battle with the union government, it is believed.

KSSPL, in the last four years, received Rs 5,500 crore from the state government’s budget allocation and the fund allocated by the union government for dispensing social security pension. It has been taking loans from KSFE, BEVCO and the Consortium of Primary Cooperative Societies. The state government has been the guarantor for these loans.

According to the latest CAG report, until the 2020-2021 period, KSSP has taken loans worth Rs 22,615 crore. Considering the pension amount allocated during 2022, the debt totals more than Rs 30,000 crore.

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