The government has lifted the curbs on withdrawals from treasuries by local government institutions, Finance Minister T.M. Thomas Isaac has said.
The Finance Minister told reporters here on Wednesday that though the curbs have been lifted, the local government institutions would not be allowed to withdraw funds from treasuries and park these in financial institutions.
The government, he said, has also decided not to enforce ways and means curbs on bills presented by various departments and various quasi-government agencies. This would ensure automatic clearance of bills up to ₹5 crore for which docket numbers had been taken by the departments and agencies concerned. Bill submitted by contractors up to April last year would be honoured. Funds would be released against bills submitted beginning May last once their scrutiny was completed.
Package for KSRTC
The Finance Minister said the government was working on a package for the revival of the Kerala State Road Transport Corporation (KSRTC). It had sanctioned ₹60 crore for clearing part of the pension arrears. Over the past one year, the government had sanctioned ₹325 crore for purchase of new buses and another ₹45 crore from the Plan funds to the corporation. It had also stood guarantee for loans totalling ₹505 crore, taking the total quantum of money made available to the corporation to ₹1,565 crore during the year. However, the corporation can be revived only if the revival package was implemented, he added.
Dr. Isaac said the government had sanctioned ₹43 crore for paying subsidy to rubber growers. The Rubber Board had raised demand for another ₹21 crore. This too would be paid in a week’s time after scrutinising the claims. The government would also release funds with interest to clear advances made by banks for paddy procurement, the Minister said.
Coming down heavily on the Central government in the current spike in petroleum prices, Dr. Isaac asked why the BJP government, which had come to power promising lower fuel prices, was not bringing the prices of petrol and diesel down given the low global prices. It was not for the State government but the Central government to bring down the levies on petroleum products. There was a huge gap in the State government’s revenue and expenditure accounts. This would be reflected in the budget, which would have definitive measures to bring down both the fiscal deficit and the revenue deficit, he said.
