THIRUVANANTHAPURAM: State finance minister TM Thomas Isaac has sent a missive to Union finance minister
Arun Jaitley seeking relaxation of the money withdrawal limit of Rs 24,000 per person per week, so that government and state PSU employees and full-time, part-time and contingent workers could withdraw in cash an amount equal to their salaries from the banks and treasuries during the first 10 days of the month.
In a letter sent on Thursday, Isaac also requested the Union minister to give instructions to the RBI to ensure sufficient impurest funds as requisitioned by the director of treasuries for meeting disbursal requirements in the treasuries for paying salaries and wages.
“Most of the employees, particularly those in the class III and IV grades, and a very large proportion of the pensioners settle their outstanding credit from the previous month in the first fortnight of the month. Hence, assuring liquidity during this period is critical to them,” the letter said. In addition, if this flow of funds is disrupted, their creditors also will be put to considerable hardship, and it’s imperative that adequate supply of cash is ensured to the employees of the state government, it added.
As per the figures given in the letter, about 5.5 lakh employees and pensioners draw their salary through banks, 4.5 lakh through treasury accounts and the rest (about 50,000) in cash. The figure excludes PSU employees and daily wage/contract employees, a large fraction of which draw their wages in cash.
The government, the letter said, requires funds to the tune of Rs 3,100 crores in the first seven days of the month for salary and pension disbursal.
The finance minister, later told reporters that the state assembly, through its resolution passed the other day, wasn’t demanding a withdrawal of
demonetisation, but an easing of the difficulties faced by people. “The resolution wasn’t politically motivated and the government is duty-bound to take care of its people. The government and the cooperative banks will chalk out an action plan within a few days to tide over the crisis,” he said.
Isaac also said that people here wouldn’t forgive the state BJP leadership for its stand on the cooperative sector and for not trusting the 47 lakh account holders in various banks.
On the impact of demonetisation on the state’s economy, Isaac said flow of funds from NRKs (non-resident Keralites) has already come to a standstill. The state GDP is expected to come down to 4% while it’s growth rate, which is now between 7% and 7.5%, would also dip to 4%, he added.