Thiruvananthapuram: The 5.25 lakh pensioners of the Kerala Government need to wait to get the arrears that accrue to them on account of the revision in the pension and Dearness Relief (DR). The likelihood of getting these arrears in the next fiscal are bleak considering the precarious finances of the State

The State has to pay Rs 2,800 crore as the pension revision arrears and Rs 1,400 crore as the DR arrears.

The Finance Department, in an order, clarified that the pension revision arrears and DR arrears can be distributed only if the State Government’s finances improve in the next fiscal, i.e, 2023-24. 

The Finance Minister had earlier said that the crisis faced by the State would be more severe in the next financial year compared to this fiscal.

DR as the term suggests is a relief granted to pensioners, including family pensioners, taking into account inflation, i.e., an increase in the level of prices of the goods and services that households buy. All pensioners are eligible for DR on pension and family pension.

Dearness Allowance too is allotted to counter the impact of inflation. It is a component of salary — often a fixed percentage of the basic salary.

The State had effected the pension revision with retrospective effect from July 2019. It was assured, before the Assembly elections, that the arrears would be distributed in four instalments. The first and second instalments have been distributed, but the rest is pending.

The other day it was reported that the Kerala Government is to borrow Rs 2,000 crore from the cooperative banks for paying welfare pensions. A consortium of cooperative banks has been formed for this purpose.