No salary as several panchayats in Kerala run out of own funds

Thiruvananthapuram: Panchayats in Kerala with exiguous own funds are facing a tough time in distributing the salaries of their employees.

The local bodies have been meeting the salary expenses of their staff from their own funds, raised through the collection of property tax, professional tax, etc. The shortage of own funds, and diversion of funds for other purposes have affected the distribution of salaries.

Some adversely-hit panchayats managed to overcome the crisis by disbursing salaries from the common fund. The COVID-19 situation, and spendings on pre-monsoon clearing activities, made the situation worse this time.

The employees of Malappattam panchayat in Kannur have not received their salaries for the past three months. They have been making both ends meet by undertaking other jobs on Sundays and other holidays.

The situation is not different at Thumpamon panchayat in Pathanamthitta. Its employees have not received the last month's salary. Bellur, Valiyaparamba and Kumbadaje panchayats in Kasaragod, too, are facing the same crisis, but they managed to pay their employees by drawing money from general purpose and gap funds.

In Kottayam, several local bodies, including Changanassery municipality, are in financial crisis. Thalanadu panchayat has to pay the salaries from August last. Moonnilavu panchayat has defaulted on last months' salary.

Meenadam, Pallikkathodu and Kallara panchayats with lesser revenue are fast heading towards the crisis. Koruthodu panchayat tightened its purse strings by cutting down on other expenses to pay the salaries. The situation in Koottikkal panchayat, where floods had hit its finances, has been limping for the past several months.

Vakkom, Pallickal, Anchuthengu, Kallikkadu, and Kanjiramkulam in Thiruvananthapuram, Pookkottukavu in Palakkad, too, are reeling under crisis after a dip in their revenues. Though the salaries are being paid now, it will also be affected at any moment.

Panchayats can apply for gap funds

Director of Panchayats H Dinesan said panchayats with zero balance in their own funds could avail gap funds. The department allows gap funds to such panchayats, he said.

Dinesan said he would check if the panchayats where the distribution of salaries had been hit had applied for gap funds.