Isaac calls for permission for full cash withdrawal of salaries by government employees

Thiruvananthapuram: Kerala Finance Minister T. M. Thomas Isaac has demanded that government employees and pensioners should be allowed to withdraw their salaries in full in cash.

In a letter to Union Finance Minister Arun Jaitley, the Minister said that the existing restrictions on withdrawals should be withdrawn to facilitate this.

Mr. Isaac also urged the Centre to make sufficient cash in advance for disbursement to employees who get their salaries in cash.

The Minister said that the about 50000 employees were being paid in cash by drawing and disbursing officers. About Rs. 3100 crores would be required for this in the first week of December. The salaries of about 5.5 lakh employees were being credited to banks and 4.5 lakh employees to treasury accounts.

“Most of the employees, particularly the Class III and IV employees and a very large proportion of pensioners, settle their outstanding credit from the previous month availed for day-to-day living expenses in the first fortnight of the month.  Hence, assuring liquidity in the first fortnight of the month is critical to them.

“In addition, if this flow of funds is disrupted, their creditors also will be put to considerable hardship. Hence, I am sure that your will agree that it is imperative that adequate supply of cash is ensured to the employees of the State Government,” he said.