THIRUVANANTHAPURAM: The Central government’s revised norms on open market borrowings (OBBs) have affected the social security and welfare fund board pension payment in Kerala. Efforts are being taken to make the payment for October and November this month-end.
The Kerala Social Security Pension Ltd (KSSPL), a state-government company formed to source loans for pension payment, limited its operations after the revised OBB norms came into effect.
Under this, off-budget borrowings by state government companies will be considered a direct liability of the government and hence would be adjusted in the net borrowing ceiling (NBC) of the government.
The KSSPL did not take loans in the new fiscal and the government is providing the whole sum to the company now.
About Rs 900 crore is required for the monthly payment to 52.5 lakh social security pensioners and seven lakh pensioners under various welfare fund boards. The spending on social security pension is about Rs 770 crore and welfare fund board pension around Rs 110 crore. The government also pays incentives to cooperative societies which conduct home delivery of pension.