The Pondicherry State government Employees Central Federation said that the financial situation of the Puducherry government had been in deep trouble due to mismanagement of the government.
P. Lakshumanaswami, general secretary of the federation, told reporters here on Monday that ever since the Puducherry government was given power to borrow loan with the implementation of Public Account Fund Act in 2007, the total debt had gone up to Rs.4,588 crore in March 2011. It was just Rs.2,168 crore from 1965 to 2011. The government had been paying interest to the tune of around Rs.331 every year. However, the borrowed loan was not spent on construction purposes. The return of the project implemented with the borrowed money was not up to the mark. Similarly, the government had withdrawn Rs.772 crore from the GPF and other funds, which was the hard earned savings of the employees.
He said though the government was supposed to generate Rs.180 crore revenue from various sources per month, it could not generate more than Rs.130 crore basically due to mismanagement and malfunctioning of the system. Tax evasion and tax avoidance had been looming large to the extent of denying salary and pension benefits to the corporation and board employees. Mr. Lakshmanaswami added that many of the public sector undertakings, corporations and cooperative societies such as PASIC, PAPSCO and others had not been paid salaries for several months.
A large number of casual and contract employees were working without salary for so long. Similarly, most of them were not made as permanent employees in spite of several years of service. If the government failed to narrow down the governance deficit it might lead to serious financial crisis. They might be a situation where government employees denied salaries. If the current trend continued, it might lead to the implementation of Financial Emergency in Puducherry.
Hence, the government must come out with a proper plan to collect the projected revenue. Tough action must be taken against those violating orders, rules and regulation of the government. Moreover, the Central government should withdraw the Public Account Fund Act immediately. The federation would stage a protest on 12 December.