Thiruvananthapuram: Kerala Government has borrowed Rs 2,000 crore through debentures of the Reserve Bank of India in a bid to distribute salary and welfare pension for this month.
The borrowing has been made at an interest rate of 7.83 per cent with a repayment tenure of 23 years.
The welfare pensions for September have not been distributed by the Government so far.
The pensions for the last month must be distributed at least by the first week of this month. Though an order, allowing pensions, was expected on the 25th of last month, it was not issued.
The Government is currently mooting the possibility of distributing the welfare pension for three months together during Christmas time.
In the second term of the Pinarayi Government, this is the first time that the welfare pension distribution for September month has been held up.
If the last month’s pension is also to be stalled, the welfare pension distribution in the State would be held up for two consecutive months.
As many as 55 lakh individuals are receiving a welfare pension of Rs 1,600 each in the state, as of now. During the first term of the Pinarayi government, the practice was to distribute welfare pensions for three or four months together during the festive seasons of Onam, Vishu and Christmas.
During the last Assembly elections, with an aim to bag votes, it was decided to distribute the welfare pensions every month. The Finance Department evaluates now that the decision was made without considering the financial status of the State.
About Rs 774 crore is needed to distribute the welfare pensions in the State every month.
Even as the salary for government employees and the pensions for retired employees choke the State exchequer, it is difficult to meet the burden of welfare pension distribution also, the officials have informed the Finance Minister.
