Thiruvananthapuram: The Kerala government is making a desperate bid to shore up its coffers. In a frantic move to find money to keep the state’s finances afloat, the government has decided to transfer an amount of Rs 500 crore from the Toddy Workers’ Welfare Fund to its coffers. However, the move has already attracted much flak, with even leaders of pro-Left unions pointing out that it would affect the payment of welfare pensions and other benefits.

However, the government has decided to go ahead with the plan as it is in red. With the GST compensation from the Central government yet to be sanctioned, Kerala has no money to pay contractors for the work done. Moreover, the welfare pensions have to be distributed this month.

The state government approached the Kerala Toddy Workers' Welfare Fund Board for Rs 500 crore as part of its efforts to mop up money from all quarters. Board chairman K M Sudhakaran told 'Manorama' that the government's request was under consideration and a decision would be taken soon.

Toddy workers make a small contribution to the Fund, which is deposited in the bank and the interest received is utilised for their welfare activities. When the government faced a severe financial crunch last year, these bank deposits were transferred to the treasury.

The latest request of the government to the Welfare Fund Board is to avail a loan of Rs 500 crore from the bank by offering these treasury deposits as collateral.

Earlier it was reported that Rs 1,700 crore received from the World Bank as flood aid was used for disbursing salary to state government employees.