The civic bodies in the State are heading for an unprecedented financial crisis, which may even disrupt the day-to-day functioning of offices and payment of salaries and other benefits to employees and pensioners, according to the Kerala Municipal and Corporation Staff Association.
The government owes the civic bodies around ₹650 crore. Local bodies are now paying the pension and other benefits from their own funds. The institutions are struggling to meet even the essential expenses, said association president P.I. Jacobson, general secretary M. Vasanthan and State secretary O.V. Jayaraj in a representation to the government.
The payment of salaries to the staff of several local bodies has been disrupted. The dip in revenue collection and the increased expenses on account of the COVID management has further deepened the crisis. The delay in getting the grants from the government on time has also contributed to the crisis, they pointed out.
Besides clearing the dues, the government shall directly pay the salary and pension of municipal staff, demanded the organisation in a representation to M.V. Govindan, Minister for Local Self-Government.
