The State government has assured the Centre to continue with the scheme to borrow Rs 1,755.5 crore
Around 60 lakh people have been receiving Rs 1600 each every month as social security and welfare pensions in the state.
Finance Minister K N Balagopal, in a statement, said the subsidy would benefit 1,45,564 rubber cultivators in the state.
He rejected reports in certain quarters raising concerns about the government's failure to collect tax arrears, calling them baseless.
The Union Finance Ministry has replied that the State's demand is against the Fiscal Responsibility Act.
Finance Minister K N Balagopal criticised the 18 UDF MPs for not signing on a joint memorandum listing the state's grievances against the Centre.
At least a dozen ministers participated in various poll campaign events in the constituency.
Opposition leader Satheesan expressed concern over state's deteriorating financial situation ahead of Puthuppally bypoll.
Minister accused opposition UDF MPs of non-cooperation with the government
Workers under Ayyankali Urban Employment Guarantee Scheme too to get festival allowance