The Keralam government is considering a salary and allowance hike for ministers and legislators while the state faces mounting financial pressures. The government 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. He cited rising fuel prices and day-to-day expenses as factors increasing the financial burden on legislators.
Under the proposal, an MLA’s existing monthly salary and allowances of around ₹70,000 could rise to ₹1 lakh. Ministers, who currently receive approximately ₹1 lakh in salary and allowances, could see the amount increase to around ₹1.25 lakh.
Cabinet Approval May Determine Timeline
Joseph said the proposal had been discussed in the Business Advisory Committee and with opposition leaders and other party representatives.
A committee headed by C N Ramachandran Nair had recommended revisions to legislators’ salaries and allowances, but its report had reportedly remained pending with the state government for three to four years.
The ongoing Assembly session is scheduled to continue until Thursday. To introduce the proposed revision during the current session, the Cabinet would need to approve it at its Wednesday meeting. The proposal would then have to be sent to the Governor, with the Speaker’s office informed before the measure could potentially be introduced in the Assembly on Thursday.
The timeline remains dependent on the required approvals.
State Finances Under Pressure
The proposed salary revision comes amid concerns about Keralam’s fiscal position. A fiscal status report tabled in the Assembly in June put the state’s outstanding liabilities at more than ₹5.07 lakh crore, while unpaid dues and deferred payments had accumulated to nearly ₹49,000 crore.
The report, titled Kerala’s Fiscal Health, A Status Report, highlighted rising debt, growing liabilities and high committed expenditure as constraints on development and infrastructure spending.
According to the report, salaries, pensions and interest payments account for 77% of the state’s total revenue receipts. Interest payments alone represent 20.9%, while capital expenditure stands at just 1.3% of the Gross State Domestic Product.
White Paper on State Finances Planned
After assuming office, the United Democratic Front government announced plans to publish a white paper on the state’s finances.
The proposed salary revision and iPad procurement have drawn attention because they are being considered against this backdrop of fiscal stress. The available information does not specify the total cost of the proposed pay increases or the 480-tablet procurement.
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