Hubballi: Delay on the part of the State government to release pension dues to the Hubballi Dharwad Municipal Corporation has hit the local body hard and it is now finding it difficult to even pay salaries.
Speaking to reporters, Hubballi Dharwad Muncipal Corporation (HDMC) Commissioner Major Siddalingayya Hiremath said that the municipal corporation’s financial health was very bad and they were worried about paying salaries to its staff.
Elaborating on the problem caused due to technical aspects involving a Government Order regarding separating the pension account from regular salary account, Mr. Hiremath said that after the Government Order in 2014-15, the pension account was separated from salary account and handed over to The Directorate of Pension, Small Savings and Asset-Liability Monitoring.
“However, the HDMC and Belagavi Municipal Corporation were left out while the pension accounts were handed over to the directorate. The issue has been pursued with the departments concerned and most likely, it will be sorted out soon,” he said.
He added that they have been forced to divert funds to the tune of Rs 3.5 crore from the general funds to pay the pensioners. “So far, funds to the tune of Rs 20 crore had been utilised from the general funds to pay the pensioners,” he said.
Mayor Chavan said that despite repeated attempts, the issue had not been sorted out and the issue was again raised during the Chief Minister Siddaramaiah’s visit to Hubballi and he had promised to look into it.
