Kerala Government has asked the Centre to issue ₹1,200 crore worth currencies at the earliest to disburse the salary and pension to government employees for November month.

Speaking to reporters here on Tuesday, the Finance Minister Thomas Issac said that the government is not in a position to pay the salary and pension due to the demonetisation of ₹500 and ₹1000 notes and subsequent currency shortage. It also asked the Centre to direct banks to allow employees to withdraw the salary fully from their accounts for their various monthly requirements.

Following the demonetisation of currencies, he said the government is coming out with new notifications each day and this shows the governments lack of foresight in implementing its decision.

To tide over the crisis, the Minister said that the government has chalked out an action plan to use the cheques issued by cooperative banks for utilising the services of government departments and hospitals. This will benefit the customers of cooperative banks who are passing through a difficult situation due to the absence of required denomination of notes.

The government, according to the Minister, is anticipating a shortfall in revenue collections this fiscal due to the new development emerged out of demonetisation measures. Therefore, the Finance department is now focussing on the collection of tax arrears from traders to meet the revenue shortfall.

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