THIRUVANANTHAPURAM: Government employees and teachers will get interim relief with next month's salary, Finance Minister Vakkom Purushothaman announced in the Assembly on Tuesday.

The Minister made the announcement while replying to the debate on the supplementary demands for grants for 2005-05. He did not elaborate.

The Pay Revision Commission, headed by R. Narayanan, is expected to submit its recommendations on quantum of interim relief shortly. This would then have to go to the Cabinet for approval. It is understood that the Commission might recommend payment of arrears from April 1 this year. The Finance Minister told the House that though the State faced financial difficulties, the people were not feeling the pinch of it. Such financial management was the achievement of the Government.

Mr. Purushothaman said that the arrears in payment of welfare pensions would be paid on September 1 besides three instalments of agriculture workers' pension. The arrears in unemployment pension would be cleared in instalments by March 6 next year. While one instalment of assistance would be paid this month, four instalments would be paid in September.

He recalled that debts had increased by 136.5 per cent during the LDF rule to reach Rs.23,919 crores. The increase over the past four years of UDF rule, on the other hand, was only less than 75 per cent. As on March 31 this year, the total debt stood at Rs.41,855 crores. In debt sustainability, Kerala was sixth while West Bengal stood at 16th in the country.

Kerala's fiscal deficit, he said, came down from 6.74 per cent of the Gross Domestic Product during the LDF rule to 4.23 per cent. The Minister said that the Government subsidy used for paddy procurement would be given to the farmers directly from next year. This was because paddy from Tamil Nadu had also reached the procurement centres.

After the Minister's reply, the House passed the demands for grants totalling Rs.600.30 crores.

Earlier, Agriculture Minister K. R. Gouri denied allegations of corruption behind the sale of rubber latex by the State Plantation Corporation at a low price.

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