Thiruvananthapuram: The Kerala government is making a frantic bid to make ends meet during the upcoming Onam festival season. As per estimates it will require a whopping Rs 8,000 crore to meet the festival expenses. That said, the state intends to raise just Rs 3,000 crore through borrowing.
It is yet unclear from where the remaining amount will be raised. The plan is to borrow through the Reserve Bank of India on August 15. Though the remaining amount is expected to be raised from the government's tax revenue and non-tax revenue, a source at the finance department said that wouldn’t be enough.
The government is also considering raising money from the cooperative bank and the Beverages Corporation Limited. However, there are concerns that the Centre will include these in the borrowing ambit.
Curbs on expenses
Strict cost-cutting measures are being contemplated. A maximum amount could be saved by restricting the release of money from the treasury.
However, it will be difficult to raise the remaining Rs 5,000 crore.
The government will struggle to ensure liquidity if it decides to provide all the benefits due to employees and pensioners as was done last year.
The disbursement of the welfare pension for two months should start this week for which Rs 1,700 crore is required.
The finance department has advised not to pay state employees Rs 20,000 advance festival pay as was given last time. However, it is for the Chief Minister to take a final decision in this regard. A decision is awaited soon.
The department urged all government departments to reduce their expenditures for the next financial year in view of the severe fund crunch the government is facing this year.
In a circular issued by the department seeking suggestions for the state budget for the year 2024-2025, the other departments have been advised not to increase any non-planned expenditure in the current year, except the salary bill for government employees.
