Thiruvananthapuram, Aug 22 (IANS) In a major relief to beneficiaries, the Kerala government has announced that two instalments of social security and welfare fund pensions will be distributed as an Onam gift.

Onam, being celebrated from September 4 to 7 this year, is the annual harvest and cultural festival celebrated by the people of Kerala.

State Finance Minister K.N. Balagopal on Friday said that Rs 1,679 crore has been sanctioned for this purpose.

As many as 62 lakh beneficiaries will receive Rs 3,200 each. This includes the pension for August, along with one pending instalment.

The government has also assured that all pension arrears will be cleared before the next Assembly elections.

The distribution will begin on Saturday. According to official figures, 26.62 lakh beneficiaries will receive the amount directly in their bank accounts, while the remaining will be provided pensions through cooperative banks delivering it at their homes.

For 8.46 lakh beneficiaries under the National Pension Scheme, the Centre is responsible for its share.

However, the state has advanced Rs 48.42 crore to ensure timely disbursal, which the Centre will later credit through its PFMS system.

To meet the festive expenses, the government had earlier raised Rs 2,000 crore through bonds.

A portion of this fund will be used for pension disbursement.

Welfare fund boards have also been directed to settle pending dues and benefits of their members before Onam, ensuring greater transparency in their operations.

Despite the severe financial crisis, the government is prioritising welfare payments. Treasury restrictions have been imposed to manage resources, reducing the bill encashment limit from Rs 25 lakh to Rs 10 lakh, except for salaries, pensions, bonuses, and Onam allowances.

Officials indicated that nearly Rs 6,000 crore will have to be borrowed for Onam-related payments, exhausting most of the borrowing permitted till December.

With the state treasury under mounting stress to find resources for year-end expenditures, the decision to release pensions is seen as both a welfare measure and a political necessity, given the upcoming local body and Assembly elections.

-IANS

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