Stories
Kerala Leaders Clash Over Pay Revision and Rs 36,000-Crore DA Arrears
- •Chief Minister V D Satheesan and former Minister K N Balagopal traded charges in the Assembly over delays in pay revision and outstanding DA and DR arrears.
- •Satheesan alleged that the previous LDF government left behind a liability of around Rs 36,000 crore and failed to constitute a pay commission in a timely manner.
- •Balagopal rejected the charges as politically motivated, stating that the LDF government had initiated the pay revision process and made financial provisions in the budget.
Key Questions Answered
Kerala Chief Minister V D Satheesan and former Finance Minister K N Balagopal clashed over a liability of around Rs 36,000 crore in dearness allowance and dearness relief arrears. Satheesan blamed the previous LDF administration for leaving this financial burden and failing to constitute a pay commission during its tenure, while Balagopal rejected the allegations as politically motivated and distorted.
K N Balagopal stated that the previous LDF government initiated the pay revision process well before its term ended by appointing the 12th Pay Revision Commission in February 2026. He noted that the 2026 Budget allocated an additional Rs 12,000 crore to implement the revision and disburse DA arrears in eight instalments, while also protecting low-paid employees by paying their leave surrender benefits in cash.
The fiscal white paper tabled by Chief Minister V D Satheesan recommended raising the state retirement age to match central government rules and conducting pay revisions once every 10 years instead of five. The CPI(M) strongly criticized these proposals, arguing that increasing the retirement age would effectively function as a recruitment freeze for five years and hurt young job seekers.
