Kerala govt asks Centre to provide Rs 1200 crore to disburse salaries

Kerala Finance Minister T M Thomas Issac said the state was struggling hard to manage the disbursement of salary and pension in the current month.

By: PTI | Kochi | Published:November 29, 2016 8:24 pm
kerala govt, kerala finance minister, tm isaac, isaac, kerala centre, kerala salaries, demonetisation, kerala demonetisation, kerala news, india news, latest news, indian express Kerala Finance Minister TM Thomas Isaac. (File Photo)

Kerala government today asked the Centre to urgently provide Rs 1,200 crore to the state treasury to disburse salary and pension as there is a “drastic reduction” in the state’s revenue following demonetisation. Kerala Finance Minister T M Thomas Issac said the state was struggling hard to manage the disbursement of salary and pension in the current month and an amount of Rs 1,200 crore was required on an urgent basis to deal with the situation.

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The State Finance Secretary has sent a letter seeking Rs 1,200 crore to the Union Government, he told reporters here.

“The non-availability of currency has put the government in a crisis. There is drastic reduction in the state’s revenue in the aftermath of demonetisation drive,” Issac said, adding, government made the demand as there was shortage of currency in the state treasury to disburse pension and salary.

He said the state’s unorganised labour sector was facing big financial crisis due to the demonetisation drive of Prime Minister Narendra Modi.

“Organised sector is also heading towards in this direction,” he said.

“Concerned over the situation prevailing in the country, Non-Resident Indian community is reluctant to send money to India,” he said.

Flaying Modi’s initiative to shift India to a cashless economy, Issac said countries, which introduced plastic money, had not undertaken demonetisation of existing currency to introduce the new system of financial transaction.

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  1. R
    ramesh
    Nov 29, 2016 at 3:03 pm
    The poor hard working people in kerala are getting daily wages of 200 and 300 rupees per day. Now the lazy government servants who think they are our masters are just making a mess out of government run insutions and organizations get a fat cheque at the end of the day....lt;br/gt;If a private company is in loss they will close down or fire the lazy employees.lt;br/gt;The govt firms are run by our tax and what does our employees ( the lazy govt servants) do?? just make everything in loss and why do they get paid for nothing ?lt;br/gt;To add more most of them are corrupt and rude
    Reply