Kerala: Financial dept gears up to settle pension dues and other arrears post-poll defeat

The treasuries are giving priority to salary and wage payments until July 9.
Representative image
Representative image

THIRUVANANTHAPURAM: Taking a cue from the LDF’s poor performance in the Lok Sabha election and criticism over delay in welfare pensions, the Left government has decided not to default on social security pension payment in future. The party has directed the finance department to give priority to the pension payment, it is learnt.

Setting priorities for government initiatives was one of the major demands that came up at the recent CPM state committee meet and subsequent district meets. Both the CPM and the CPI leadership pointed at an urgent need for the government to set its priorities straight and ensure pension payment and funds to Supplyco. Shortage of essentials at Supplyco markets due to lack of financial support was another area of concern. It’s in this backdrop that the finance department has been directed to concentrate on these sectors.

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Centre defaults social security pension in Kerala, says government

Meanwhile, the state government’s financial problems have eased with the start of borrowing in the new financial year. The government had recently eased restrictions on bill payments through treasuries. The upper ceiling on bill payments was raised from Rs 5 lakh to Rs 25 lakh from June 24.

Besides the borrowings, the government got a relief in the form of the balance tax devolution share from the previous financial year. The maiden cabinet meeting of the third Modi government had decided to make the balance payment immediately. The state government received Rs 2,100 crore on this count. The latest borrowing of Rs 1,500 crore was made in June last. The treasuries are giving priority to salary and wage payments until July 9. Afterwards, bill payments will be made as normal. The government is yet to take a decision on the pending payments of social security pension. The payment for four months is pending. The pensioners got regular payment in April, May and June.

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