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

A heated exchange unfolded in the Kerala Assembly on Monday as Chief Minister V D Satheesan and former Finance Minister K N Balagopal blamed each other's administrations for financial mismanagement and delays in employee pay revisions.

Satheesan accused the previous LDF government of leaving behind a massive liability of approximately Rs 36,000 crore in dearness allowance and dearness relief arrears. He claimed the LDF administration was the only government in the past five decades that failed to constitute a pay commission during its full term, only issuing orders for the 12th Pay Revision Commission in February 2026, just before assembly elections.

The Chief Minister also criticized the previous government for repeatedly postponing leave surrender benefits since 2021, directing pointed remarks at Balagopal who had served as Finance Minister under the LDF regime.

In response, Balagopal rejected the allegations through a Facebook post, stating the LDF government had properly initiated the pay revision process and made adequate financial provisions. He noted that the commission was constituted with a three-month deadline and that the 2026 Budget had allocated an additional Rs 12,000 crore for implementing pay revisions and clearing DA arrears in installments.

Balagopal accused the current government of jeopardizing the process by neither extending the commission's deadline nor providing clear direction, calling Satheesan's accusations an attempt to conceal the present administration's own failures.