Kerala's Finance Minister, K N Balagopal, has levelled serious allegations against the central government, accusing it of blocking crucial welfare pension payments intended for the state's most vulnerable citizens. The minister stated that despite the Kerala government proactively depositing the central share of funds in advance, the intended beneficiaries have not received their money.
State Forced to Pay Centre's Share in Advance
In a detailed statement, Balagopal explained the breakdown of the current crisis. The state government had transferred a sum of Rs 24.75 crore to the central government's Public Finance Management System (PFMS) unit by December 15. This amount represented the central government's share for the month of December, meant for direct transfer to the bank accounts of 846,456 beneficiaries across various pension schemes.
These schemes include old age pensions, disability pensions, and widow pensions. The central share varies: Rs 200 for old age pensioners, Rs 500 for those over 80, Rs 300 for widows, and between Rs 300 to Rs 500 for persons with disabilities, depending on age and disability percentage.
Systemic Failure in Direct Benefit Transfer
Minister Balagopal highlighted a critical change in procedure that has led to the current impasse. Prior to April 2023, the Kerala government would deposit the full pension amount—combining both the state and central shares—into beneficiaries' accounts and later claim reimbursement from the Centre.
However, a new directive mandated that the central share be transferred directly by the Centre via the PFMS Direct Benefit Transfer system. "Since April 2023, the central government decided to directly transfer its share to the beneficiaries' accounts. However, it failed to do so on time for even a single month," Balagopal asserted.
To prevent beneficiaries from suffering, the state government began advancing the central share itself. "Although the funds were transferred earlier, the PFMS officials were not ready to distribute them accurately," the minister claimed, adding that past delays were often blamed on technical glitches by PFMS authorities.
Mounting Dues and Financial Strain on Kerala
The fallout from these repeated delays is creating a significant financial burden for the state. Balagopal revealed that the central government is consistently late in reimbursing the advanced amounts, with delays stretching into years. Kerala is currently owed approximately Rs 265 crore in pending reimbursements for previous advances.
"By delaying the state's advanced central share, the central government is putting the state government in a difficult position," Balagopal stated. He emphasized that while the state has already disbursed its own share to all pensioners, the central government's failure to fulfill its obligation is depriving lakhs of elderly, widows, and differently-abled individuals of their rightful and essential financial support.
The situation underscores a growing tension in fiscal federalism, where state welfare commitments are being hampered by alleged administrative failures at the central level, impacting the livelihoods of nearly 8.5 lakh people in Kerala.
