Government employees under the aegis of the Secretariat Action Council have announced an indefinite hunger strike from Monday protesting against the delay in the payment of salaries. The hunger strike will begin outside the Secretariat gates next to the sub-treasury at 11 a.m., Irshad M.S., convener of the Secretariat Action Council, said. The payment of salaries for February through the employee-Treasury Savings Bank (e-TSB) was hit on March 1 and March 2, prompting the action council to ramp up its protest.
While the Finance department attributed the problem to a ‘technical glitch,’ the Opposition-backed Secretariat Action Council has not bought this excuse. It attributed the non-payment to financial mismanagement of the CPI(M)-led LDF government.
Schedule of disbursal
The salaries of the Secretariat employees and those of government departments including Revenue, Police, Taxes, Prisons, Excise and Public Works are customarily disbursed on the first day of the month. On the second day of the month, the salaries for educational institutions and hospitals are disbursed. The salaries of employees in the remaining departments are issued on the third day.
Meanwhile, Finance department sources said the issue is expected to be sorted out by Monday. Towards the end of the fiscal, the State government, already reeling under financial crunch, is also faced with huge expenses.
Directive to institutions
In a March 1 order, the Finance department directed public sector institutions, grant-in-aid institutions, autonomous institutions and State-owned and sponsored agencies to “take urgent steps to deposit maximum amount of the institution’s profits/own funds in the treasury promptly.” A directive in this regard had been issued in September 2023, but now the government is offering an incentive by giving a higher flat interest rate — a maximum of 8.5% — for deposits of minimum 6 months above ₹5 crore made during March 1 and March 25 this year.
Incentive offered
In a separate order, the Finance department also announced a “special interest rate” of 7.5% for 91 days for fixed deposits made with treasuries during the same period. Last week, the Union government had authorised the release of ₹4,122 crore to Kerala with respect to tax devolution and settlement of the Integrated Goods and Services Tax (IGST) due to the State. The decision had come as a relief to the State government.
The Kerala Secretariat Association, Kerala Finance Secretariat Association, Kerala Law Secretariat Association and the Kerala Legislature Secretariat Employees Association will participate in the protest on Monday, a statement issued by the Secretariat Action Council said.