Kerala Leaders Clash Over Rs 36,000-Crore Pay Arrears and Revision Delays

A heated exchange erupted in the Kerala Assembly on Monday as Chief Minister V D Satheesan and former Finance Minister K N Balagopal traded accusations over delayed pay revisions and outstanding dearness allowance arrears totaling Rs 36,000 crore.

Satheesan claimed the previous LDF government left behind massive financial liabilities, including the substantial DA and dearness relief arrears that the current administration is now working to clear. He further alleged that the LDF government became the first in 50 years to fail constituting a pay commission during its tenure, only issuing orders for the 12th commission in February ahead of assembly polls.

The Chief Minister also targeted Balagopal over repeated postponements of leave surrender benefits since 2021, calling it ironic that questions were now being raised by those who deferred payments most frequently during their time in office.

Balagopal rejected the allegations in a Facebook post, arguing that the LDF government had initiated the pay revision process before its term ended and made financial provisions accordingly. He stated that the commission was appointed on February 23, 2026, with a three-month deadline and July 1, 2024 as the effective revision date. The former minister accused the current government of jeopardizing the process by failing to extend deadlines or provide clear direction.

Defending the previous administration's financial planning, Balagopal noted that the 2026 Budget allocated an additional Rs 12,000 crore specifically for implementing pay revisions and disbursing DA arrears in eight installments, dismissing claims of leaving behind an unplanned burden.