What's in store for new UDF govt amid Kerala CM impasse

Thiruvananthapuram: While Congress top leaders in Kerala are engaged in a tug of war for the Chief Minister post, what is in store for the new government is a host of challenges, especially fiscal.

A cash strapped ex-chequer with total debt and liabilities to the tune of around Rs 4.5 lakh crore and a host of commitments like hike in welfare pension to over 60 lakh beneficiaries and free travel for women in transport buses could put the Congress-led United Democratic Front (UDF) government in a tight spot.

Towards the fag end of its team the previous CPM-led Left Democratic Front (LDF) government had constituted pay commission for revision of salaries of state government employees. It could cause an additional financial burden of around Rs 25,000 crore. Arrears of the previous pay revision are also still pending.

UDF, under the leadership of V D Satheesan as opposition leader, had been strongly accusing the previous LDF government of financial mismanagement as well as lapses in tax collections. The LDF used to blame the centre for the financial crunches in the state as allocations to the state were reduced citing various reasons.

Even as the Pinarayi Vijayan government often boasted of better financial management amidst fund crunches, government sources said that a host of payments were kept pending by the previous government.

The UDF had assured in the election manifesto that the welfare pension would be increased from Rs 2000 to Rs. 3000. The free bus ride for women in transport buses offered by the UDF would also require more financial support to the Kerala State Road Transport Corporation that is already in a deep financial crisis. The UDF also offered Rs 1,000 per month assistance for college going girls as well as several other sops.

The UDF government would be facing a major challenge in meeting these obligations.