The Kerala State Government has clearly mentioned that it is not the liability of the state to pay for the salary and pension of the employees of grant-in-aid institutions. As it has earlier been mentioned, a circular from the Finance Department dated 13th November, 2024 revealed that such institutions in the country should provide these expenses from within their resource base.
The government stance on pay and pensions expenses
As the government has stated, the amount of money it gives to grant-in-aid institutions is intended solely for their functioning. The circular also clearly points to the fact that salaries and pensions should be met out of the funds provided by the institution and not from the state exchequer.
When employees sue the government for an increase in salary or pension, the institutions and departments concerned must state that the government does not pay this amount in court.
Accounting for Grant-in-Aid Funds
The circular also points out that when money is provided from the grantinaidsalary fund it must be taken as aid for salaries. In other words, the above needs have to be met by the institutions seeking extra resources on their own. These institutions, although financed by state funds, cannot use money from other types of government revenue for salary or pension needs.
Some of the challenges experienced by institutions are as follows:
They are special institutions that operate more or less independently of the government and to which the government makes grants, for examples for salaries or capital purposes. The circular notes that since these institutions are required to fulfill other conditions that include salary increase from own sources of funds, these institution lack adequate funds. This shortfall often results in calls for more grants from the government.
The 11th Pay Revision Commission, presenting its report in October 2021 says that institutions are often unable to fully meet the additional expenses using internal resources which explains the permanent calls for more subsidies from the government. In view of this this new circular seeks to cover the above areas and place the responsibility on the respective institutions.
