THIRUVANANTHAPURAM: Bills queued up in the state’s treasuries could be cleared only after getting the pending GST compensation from the central government, Finance Minister Thomas Isaac said on Wednesday. With acute financial crisis, the state government has already effected a 30 pc cut in plan fund projects.
The minister said the plan projects would be severely affected if the government delays the GST compensation and rejects the demand for raising the state’s borrowing limit. Isaac pointed out that already a 30 pc cut has been made in plan fund projects. “But this will not be applicable for local self-governments. Their bills, however big the amount is, are being accepted in the treasuries. But they can be cleared only as per the ways and means position,” he said.
“The crisis will be over and pending bills in the treasuries will be cleared when the Centre grants `3,000 crore compensation due to the state,” he said. In mid-November, the government had tightened restrictions on treasuries in the wake of financial crisis. Since then treasuries are resorting to “item-wise” clearance of bills. As per this, bills under selected heads will only be cleared.All development works
under plan and non-plan funds are at a standstill owing to the restriction.