Demonetisation: Kerala asks Centre to provide Rs1,200 crore to disburse salaries
Kerala finance minister T.M.Thomas Issac said the state was struggling hard to manage the disbursement of salary and pension in the current month
- Narendra Modi affirms his govt’s commitment against corruption
- Banking sector in 4 years of Modi govt: Note ban sets off surge in digital transactions
- Ireland votes to liberalize abortion regime in landslide
- Start-ups spared of tax on angel investment above fair valuation
- Mayawati says she will remain BSP president for next 20 years
Kochi: The Kerala government on Tuesday asked the centre to urgently provide Rs1,200 crore to the state treasury to disburse salary and pension as there is a “drastic reduction” in the state’s revenue following demonetisation.
Kerala finance minister T.M.Thomas Issac said the state was struggling hard to manage the disbursement of salary and pension in the current month and an amount of Rs1,200 crore was required on an urgent basis to deal with the situation. The state finance secretary has sent a letter seeking Rs1,200 crore to the Union government, he told reporters here.
“The non-availability of currency has put the government in a crisis. There is drastic reduction in the state’s revenue in the aftermath of demonetisation drive,” Issac said, adding, government made the demand as there was shortage of currency in the state treasury to disburse pension and salary.
He said the state’s unorganized labour sector was facing big financial crisis due to the demonetisation drive of Prime Minister Narendra Modi. “Organised sector is also heading towards in this direction,” he said. “Concerned over the situation prevailing in the country, non-resident Indian community is reluctant to send money to India,” he said.
Flaying Modi’s initiative to shift India to a cashless economy, Issac said countries, which introduced plastic money, had not undertaken demonetisation of existing currency to introduce the new system of financial transaction.
Editor's Picks »
- Motherson Sumi continues to face margin pressure in foreign markets
- What the Warren Buffett indicator tells us about market valuations today
- Jet Airways lands with a thud in Q4 as fuel costs increase
- IBC amendments: Some dilutions, and a lot more speed
- Patanjali’s gambit is paying off in toothpaste wars