Thiruvananthapuram:  In a significant move against grant-in-aid institutions, the State Finance Department has issued a circular instructing them to identify their own sources of income to cover expenses related to salaries, pensions, and other benefits.

The circular also says that the respective department secretaries have to inform the court that the state government would have no liability if employees or persons who are eligible to receive money from these institutions resort to legal action over non-payment.

Grant-in-aid institutions in Kerala include Kerala Kalamandalam, Sahitya Akademi, Sports Council, Library Council, Lalitha Kala Akademi, Centre for Development Studies, Gulati Institute and Devaswom Recruitment Board. These institutions are allotted grants in the budget for their functioning. The circular was issued after noticing that they utilised the grants to pay salaries and meet other expenses. However, aided educational institutions are not included in the list.