The Keralam government is contemplating an increase in the salaries and allowances for Members of the Legislative Assembly (MLAs) and ministers amid ongoing fiscal challenges. This consideration comes as the state faces rising costs associated with fuel and daily expenses, which have reportedly placed additional financial strain on legislators.

Parliamentary Affairs Minister Sunny Joseph indicated that discussions regarding the salary adjustments are nearing a conclusion, highlighting the necessity for a revision due to the current economic climate. Currently, the monthly salary and allowances for an MLA in Keralam total approximately Rs 70,000. The proposed adjustment aims to elevate this figure to Rs 1 lakh.

In contrast, ministers currently receive around Rs 1 lakh, with proposals suggesting an increase to approximately Rs 1.25 lakh. The adjustments are being discussed in light of the broader economic pressures affecting the state. Minister Joseph noted that the issue has been addressed in the Business Advisory Committee (BAC), with discussions involving various political leaders, including Opposition Leader PK Kunhalikutty and party leaders Mons Joseph and K Rajan. The government is poised to reach a final decision on the matter shortly.

Purchase of iPads for Legislators

In addition to the proposed salary increase, the Keralam government has initiated a tender for the procurement of 480 iPads, which are reportedly intended for use by legislators, ministers, and their personal staff. This move is part of the government’s efforts to modernise and enhance the efficiency of legislative processes. The introduction of iPads is seen as a step towards digitising administrative functions within the government.

The ongoing Assembly session is set to continue until Thursday, and for the proposed salary increase to be implemented during this session, it must receive Cabinet approval in the upcoming meeting scheduled for Wednesday. Following this approval, the proposal will be forwarded to the Governor, with the Speaker’s office to be informed by Wednesday evening. If all goes as planned, the measure could be presented in the Assembly on Thursday.

Fiscal Challenges Facing Keralam

The backdrop of these proposed changes is Keralam’s escalating fiscal pressures. As reported by Chief Minister VD Satheesan in June, the state’s outstanding liabilities have surpassed Rs 5.07 lakh crore, while unpaid dues and deferred payments have reached nearly Rs 49,000 crore.

This financial status report has raised concerns regarding the state’s ability to fund essential development and infrastructure projects. After taking office, the United Democratic Front (UDF) government announced its intention to publish a white paper detailing the state’s financial situation.

The report, titled “Kerala’s Fiscal Health, A Status Report,” has identified rising debt and high committed expenditure as significant obstacles to the state’s financial stability. It emphasises that salaries, pensions, and interest payments constitute 77 per cent of Keralam’s total revenue receipts, with interest payments alone accounting for 20.9 per cent of the total.

Moreover, the report indicates that capital expenditure stands at a mere 1.3 per cent of the state’s Gross State Domestic Product, which is among the lowest in the country. This situation underscores the urgent need for careful financial management and strategic planning to address the fiscal challenges that Keralam currently faces.

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