Amid a fiscal crisis, the Keralam government is considering a hike in the salaries and allowances of MLAs and ministers. It has also issued a tender to purchase 480 iPads, reportedly for legislators, ministers and their personal staff.
Parliamentary Affairs Minister Sunny Joseph said discussions on the proposed salary revision were nearing a final decision, adding that the rising cost of fuel and day-to-day expenses had increased the financial burden on legislators.
“The expenses of the MLAs have increased. Petrol expenses, day-to-day expenses have increased, and there is a price hike. We have discussed this in the Business Advisory Committee (BAC). We discussed it with the Opposition Leader, PK Kunhalikutty, and party leaders, Mons Joseph and K Rajan, among others. We are reaching a final decision,” Joseph said.
The existing salary and allowances of an MLA in Keralam amount to around Rs 70,000 a month. The proposal is to raise this to Rs 1 lakh.
Ministers currently receive around Rs 1 lakh in salary and allowances, with the proposed revision seeking to increase the amount to around Rs 1.25 lakh.
A report by the CN Ramachandran Nair committee, which recommended revisions to the salaries and allowances of MLAs and ministers, has been pending with the state government for the past three to four years.
The ongoing Assembly session is scheduled to continue until Thursday.
For the proposed hike to be introduced during the current session, the Cabinet would need to approve it at its meeting on Wednesday.
Following approval, the proposal would have to be sent to the Governor, with the Speaker's office informed by Wednesday evening. The measure could then be introduced in the Assembly on Thursday.
The proposed salary revision comes against the backdrop of Keralam’s mounting fiscal pressures. The state’s outstanding liabilities have crossed Rs 5.07 lakh crore, while unpaid dues and deferred payments have accumulated to nearly Rs 49,000 crore, according to a fiscal status report tabled in the Assembly by Chief Minister VD Satheesan in June.
After assuming office, the UDF government announced plans to publish a white paper on the state’s finances.
The report, titled Kerala’s Fiscal Health, A Status Report, flagged rising debt, growing liabilities and high committed expenditure as major constraints on the state’s capacity to fund development and infrastructure projects.
The report also highlighted the pressure of recurring expenses on the state exchequer.
Salaries, pensions and interest payments account for 77 per cent of Keralam’s total revenue receipts, with interest payments alone making up 20.9 per cent. Meanwhile, capital expenditure stands at just 1.3 per cent of the state’s Gross State Domestic Product , among the lowest in the country.
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