Treasury restrictions have been reintroduced in Kerala in view of heavy spending expected during the Onam season. Until now, bills up to ₹25 lakh could be cleared through the treasuries, but this limit has now been reduced to ₹10 lakh.
Essential expenses, including salaries and pensions, will not come under these restrictions.
The treasury bill clearance limit, which once stood at ₹5 lakh, was raised to ₹25 lakh on June 26 last year. For nearly a year after that, there were no major restrictions in place.
Now, with the added financial burden during the festive season, the government has chosen to tighten spending. From here on, bills above ₹10 lakh will need special approval from the finance department.
There will be no restrictions on withdrawing deposits or availing benefits for account holders. A directive with the new guidelines has already been passed on to all treasuries. However, it remains unclear how long these restrictions will continue.
According to estimates, about ₹20,000 crore will be needed for the salaries, pensions, bonuses, festival allowances, welfare pensions, and loan interests of government employees. An additional ₹700 crore will go towards benefits for employees, pensioners, and part-time contingent staff.
On top of this, welfare pensioners are to receive two instalments, including one month’s arrears, which alone is expected to cost around ₹1,900 crore.