Thiruvananthapuram: Kerala Government has decided to borrow Rs 3,000 crore more to meet the expenses related to the upcoming Onam festival. This is besides the Rs 1,000 crore borrowed last week.
The amount to be borrowed is to be mainly used for distribution of two months' welfare pension for eligible public and the festival bonus for government employees.
The bidding for the loan at the Reserve Bank of India (RBI) would be held on August 29.
The Finance department is yet to decide on how to go about the High Court order to allot Rs 103 crore to the financially stressed Kerala State Road Transport Corporation (KSRTC). Sources said that a decision would be taken after a thorough study of the verdict.
Funds are released to the other departments after declaring the same in the budget and passing the finance bills in the Assembly. The authorities are unhappy with the court’s decision to intervene in matters of funds' allotment.
However, it is yet to be decided whether the Government would appeal against the High Court order.
Last year's handout
Last year, the Government paid Rs 4,000 per employee as bonus, and Rs 2,750 as a festival allowance to those not eligible for bonus. The government employees were provided Rs 15,000 each as Onam advance. An advance of Rs 5,000 each were given to other employees, including the part-time contingent staff. The finance department is planning to extend similar Onam benefits this time too.
Restrictions for availing loans
The state has to tide over the strict restrictions imposed by the Centre to avail of loans. The Centre has fixed the borrowing limit of Kerala at Rs 17,936 crore till December 2022. This includes the loans to be availed of by KIIFB for development projects and by the pension company to extend welfare pensions to lakhs of beneficiaries.
