Kerala – Salary delay hits government employees for the first time in state history
The salaries of government employees in the state have been delayed for the first time in history. Today marks the fourth day of the new month, with employees now entering the third working day, excluding Sunday. Despite assurances from the Finance Department that salaries would be disbursed today, it seems impractical to fulfil this promise for the multitude of employees awaiting payment.
Initially attributed to technical issues on the first day of the delay, where the Finance Minister stated funds were stalled in transfer from the treasury to bank accounts, no specific obstacles were outlined. Experts point to the severe financial crisis gripping the state as the underlying cause.
With 2.75 lakh government employees expecting payment within the first three working days, it’s uncertain whether all can be accommodated today. There’s speculation that only those scheduled for the first working day may receive payment, while others might receive fixed withdrawals or instalment payments, potentially extending salary disbursement until the 12th of the month.
Meanwhile, scrutiny has arisen as the Chief Minister and ministers received their salaries promptly on the first of the month. The Finance Department explains this disparity by citing the use of treasury savings bank accounts for officials, contrasting with the Employees Treasury Savings Bank accounts used by employees. Employees, however, contend that their accounts have been frozen due to insufficient funds.
Finance Minister addresses salary crisis; limits maximum withdrawal amount to Rs 50,000
According to Janam TV’s report, Kerala Finance Minister KN Balagopal spoke out regarding the ongoing issues with government salaries. He revealed that full salaries for government employees won’t be disbursed at once, and even with the distribution starting today, the crisis won’t immediately resolve. To manage the situation, a limit will be placed on the amount of salary withdrawal, with the maximum limit set at Rs 50,000.
Balagopal said that efforts are underway to impose control on the Treasury and resolve the crisis within two days. He emphasised that there is no cause for alarm, assuring that salary and pension disbursements will continue. The minister attributed the issue to technical issues with the Employee Treasury Savings Bank accounts. Additionally, he did not forget to repeat the constant refrain that the crisis arose because of the central government, which withheld funds amounting to Rs 13,608 crore owed to Kerala.
