Thiruvananthapuram: Kerala Chief Minister V.D. Satheesan has announced that the state government is actively considering a fresh Dearness Allowance (DA) hike for government employees while reaffirming its commitment to restoring all pending employee benefits in a phased manner despite the state’s financial challenges.
Inaugurating the 61st Annual Conference of the Kerala Finance Secretariat Association, the Chief Minister said that employees would receive the DA increase due after the present government assumed office, subject to the state’s financial position.
Satheesan sharply criticised the previous administration’s financial management, alleging that poor planning and unrealistic fiscal policies had pushed Kerala into a severe financial crisis. According to him, the current government has inherited liabilities of more than ₹35,000 crore, including over ₹21,000 crore in pending DA arrears and nearly ₹14,000 crore in Dearness Relief (DR) arrears.
Despite these liabilities, he asserted that the government has no intention of reducing employee benefits. Instead, all eligible arrears would be released in phases after financial assessments.
The Chief Minister also announced that the Medisep health insurance scheme would be restructured to address its shortcomings and provide better benefits to employees and pensioners.
He assured government staff that politically motivated transfers and harassment would not be tolerated under the present administration, promising protection for employees who had allegedly faced such treatment in the past.
Speaking on the state’s economy, Satheesan said that increasing taxes alone would not generate higher revenues. Referring to fuel tax hikes, he claimed that higher taxes had resulted in lower sales and reduced revenue collections. He stressed the need to curb unnecessary expenditure, improve financial discipline, and eliminate wastage in government spending.
The Chief Minister also outlined the government’s long-term development vision, including transforming Kerala into a major “Port City” by integrating Vizhinjam Port, other international ports, 18 minor ports and the state’s 600-kilometre coastline. He further announced plans to develop aviation hubs around Kerala’s four international airports and promote MSMEs to create large-scale employment opportunities.
Satheesan concluded by urging Secretariat employees and the government machinery to work together as one team to overcome the state’s financial crisis and accelerate Kerala’s development.
The conference was attended by several ministers, elected representatives and leaders of various government employees’ organisations.
