Keralam CM, ex-finance minister spar over pay revision delay, Rs 36,000-crore DA arrears

Keralam Chief Minister V D Satheesan and former Finance Minister K N Balagopal on Monday traded charges over delays in the pay revision process and outstanding dearness allowance (DA) and dearness relief (DR) arrears, with both blaming the other's government for the financial burden on the state.

Speaking in the Assembly, Satheesan alleged that the previous LDF government had left the current administration with liabilities of around Rs 36,000 crore towards DA and DR arrears.

Balagopal, a CPI(M) leader, rejected the allegation, accusing the chief minister of distorting facts and making politically motivated claims against the previous government.

“We are clearing those arrears now despite the financial problems the government is facing,” Satheesan said.

Responding to questions from Balagopal and other Left MLAs on the pay revision process initiated by the previous government, Satheesan claimed that the LDF administration had failed to constitute a pay commission during its 2021-2026 tenure.

He said it was the only government in the past 50 years that had failed to constitute a commission for salary revision.

Since 1977, every government had constituted a pay commission, obtained its report and implemented revisions based on its recommendations, Satheesan said.

The previous LDF government, however, delayed the constitution of the commission by two years and issued an order for the 12th Pay Revision Commission only in February 2026, shortly before the Assembly elections, he alleged.

“So, we did not delay the pay commission,” the chief minister said.

Satheesan also accused the previous government of repeatedly postponing the payment of leave surrender benefits since 2021, citing several orders issued to defer the payments.

He questioned the Left's criticism of the current administration over the issue, saying the government that had postponed the benefits most frequently was now demanding answers on their payment.

The Left MLAs had sought clarity on whether the pay revision process initiated by the previous government would be implemented in the current financial year.

Balagopal cites February order, Rs 12,000-crore budget allocation

In a Facebook post, Balagopal said the LDF government had initiated the pay revision process before the end of its term and made financial provisions for the revision and payment of DA arrears.

He said an order issued on February 23, 2026, appointed the chairman and members of the 12th Pay Revision Commission and directed it to submit its report within three months.

The commission's terms of reference, issued on March 5, specified July 1, 2024, as the effective date of the revision, he said.

Balagopal added that the commission began its sittings and office operations around March 20, the required staff were appointed on March 24, and a questionnaire for employees was issued in the first week of May.

He alleged that the current government had jeopardised the process by neither extending the commission's deadline nor taking a clear decision on the next steps.

“Blaming the previous government to conceal its own failures is an act of political bankruptcy,” Balagopal said.

Rejecting Satheesan's claim that the LDF had left an unplanned financial burden, Balagopal said the 2026 Budget had allocated an additional Rs 12,000 crore compared with the previous year to implement the pay revision and pay the initial instalments of DA arrears.

The arrears were to be disbursed in eight instalments, he said.

Balagopal also defended the previous government's decision to pay leave surrender benefits in cash to low-paid employees while temporarily crediting the benefits of higher-paid employees to their Provident Fund accounts. The arrangement, he said, protected employees' financial rights while helping the government manage expenditure.