Kerala: State government to use 'welfare funds' worth Rs 1700 crore to combat financial crisis 
December 5, 2025
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Home Politics

Kerala: State government to use ‘welfare funds’ worth Rs 1700 crore to combat financial crisis 

The Government of Kerala (GoK) which is trapped in grave financial crisis is now all set to lay hands on Welfare Fund Boards for picking up the tab for the daily expenses. Rs 1700 crore is the target in this regard.  The State government will take Rs 1200 crore from Kerala Motor Transport Workers Welfare Fund Board and Rs 500 cr from Kerala Toddy Workers’ Welfare Fund Board. These will be received as short term fixed deposits in the treasury.

T SatisanT Satisan
Sep 5, 2023, 10:45 pm IST
in Politics, Bharat, Kerala
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The State government of Kerala is facing acute financial crunch. In order to overcome this crisis situation, the government of Kerala is trying hard to get funds from various other Welfare Boards. However, most of the state boards are facing a financial crisis. The Kerala State Beverages (M&M) Corporation Limited (BEVCO) is supposed to get Rs 1,000 crore, which the Income Tax Department collected by mistake. The government’s endeavour is to avoid the financial embarrassment caused by the Onam festival celebrations. Now, only Rs 2,000 remains out of the total amount which the Union Government allocated.

Recently, the government of Kerala had reduced the treasury transaction limit to Rs 5 lakhs. Several bills, except for some Onam-related expenses, were deferred. Treasury restrictions have not yet been lifted. Government sources believe that flow of Welfare Funds will help to settle urgent bills.

Reports suggest that the adjustments from the Welfare Funds are temporary arrangements. It is reported that even former governments had accepted funds from Welfare Boards to face financial crises. However, Union government brought these borrowings under the loan limit of the state government hence (state) government was compelled to control it. If the funds are returned before December 2023, state’s loan limit will not be affected.

Despite worse sort of financial crunch, the state government is still indulging in lavish spending. The latest example is the hiring of helicopter for the chief minister. For this unfair hiring, the goevernment of Kerala hasd to part with Rs 80 lakhs for 25 hours and Rs 90,000 for every additional hour. Eleven passengers, including pilot, can be carried by the flight. Reports on the official version says, the purpose is for scanning of Maoist movements, relief activities and police actions. But, the ‘additional purpose’ (and most important too) is the chief minister’s ‘emergency travels’.

When the Left Democratic Front (LDF), led by chief minister Pinarayi Vijayan, hired a helicopter in 2020, there were serious allegations that it was nothing but unnecessary luxury as the state was under grave debt trap. Even the victims of 2018 floods had not got the relief that was declared by the government. At that time, two years were over since the 2018 floods. Right thinking people had to condemn it. Now, some political observers humorously state that CM’s chopper flight within the state is good for the people of the state. Because, wherever he goes, the unprecedented security arrangements cause stumbling blocks to the free movements of the people. Opposition parties have been alleging that about forty vehicles take part in the convoy of the CM. They say that since CM flies in the air, people on the roads are relieved.

Employees of Kerala State Road Transport Corporation (KSRTC) were protesting, just before the Onam celebrations, against the nonpayment of their salaries and the pension. A popular cine actor blasted the GoK, in the presence of two ministers, for the nonpayment of the price of the paddy procured from the farmers.

Employees of Kerala State Road Transport Corporation (KSRTC) were protesting, just before the Onam celebrations, against the nonpayment of their salaries and the pension. A popular cine actor blasted the government, in the presence of two ministers, for the nonpayment of the price of the paddy procured from the farmers.

Topics: keralaEconomic Crisis
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