STREET STRIKE: Employees' unions have called an indefinite strike from February 6

Ten Kerala's most popular godwoman Mata Amrithananda Mayi arrived last week at Thiruvananthapuram, among her early visitors was Chief Minister A.K. Antony, once an avowed rationalist. "Amma" locked him in her customary embrace and spent half-an-hour with him. Later, Antony said: "Whenever I have mental worries I come to see Amma or think of her. The relief is immediate."

Antony does need Amma's soothing touch. The state is teetering on the brink of a financial disaster. Three ministers are embroiled in cases ranging from financial scams to sexual harassment. Besides the opposition Left Democratic Front (LDF), detractors within the eight-month-old United Democratic Front Government, led by former chief minister K. Karunakaran, don't let go of any opportunity to take Antony to task.

Now the unprecedented cost-cutting steps announced on January 9 to counter the financial crisis have provoked the politically active five lakh government employees and teachers to take to the streets (see box). For the first time in 20 years, unions affiliated to both the UDF and opposition parties have jointly called an indefinite strike from February 6.

STATES

PURSE STRINGS What the new measures entail > Salaries for February and March to be deferred by 15 days. > Leave surrender facility abolished. > Fresh recruits to get only basic pay for the first two years. > 75 per cent salary and DA for voluntarily staying off duty for one year. > Full pension restoration period raised from 12 to 15 years. > Excess staff to be redeployed.

Justifying the austerity measures, Antony said, "After payment of salaries the Government is left with nothing. Last month we had to divert even the plan grant given by the Centre to pay salaries." The unusually candid Antony also warned employees of wage cuts on strike days, while laying most of the blame for the crisis on the previous LDF government's "profligacy". With the new measures-recommended by the State Planning Board-he is assured of savings of Rs 500 crore this year and Rs 900 crore next year. The board had found that more than 60,000 employees were redundant and should be redeployed.

Kerala's salary and pensions' bill accounts for 65 per cent of the state's annual revenue expenditure of Rs 10,171 crore. Add to this the interest payments, after which only 17.54 per cent is left for other administrative work. The Government rolls are spilling over too. The number of employees rose from 4.96 lakh to 5.24 lakh between 1995-96 and 2000-1, resulting in the salary bill increasing by 111 per cent from Rs 2,230 crore to Rs 4,711 crore. And every year around 15,000 pensioners are added to the present 2.8 lakh. The expenditure under pensions rose by 125 per cent from Rs 779.53 crore to Rs 1,749.20 crore between 1995-96 and 2000-1.

Expectedly, the unions and the LDF are crying foul. They allege that the across-the-board cuts-equally applicable to a Class IV employee who gets a salary of Rs 3,000 per month and a secretary who earns Rs 30,000 per month-are anti-poor. The Government is also accused of sparing top functionaries. In the case of ministers and secretaries, the measures include a 20 per cent cut in salaries; only one phone with std facilities for ministers and officers; and ISD facility only for chief minister and chief secretary. "All that is saved with the 20 per cent salary cut for ministers is Rs 2.5 lakh per year," says Opposition leader V. S. Achuthanandan.

"Now the Government has just one function-pay salaries." A.K. Antony, chief minister

The Government is also accused of being top-heavy, a charge it doesn't deny, with the number of officials overshooting the Centre's guidelines. For example, the number of IAS officers in the state is 180, almost double the stipulated 97.

While agreeing that it is time to stop pampering the bureaucracy, most economists agree that the present measures are hardly the solution. "While the Government withholds the subsistence salaries of Class iv employees, it doesn't collect tax arrears to the tune of Rs 2,100 crore and continues to give stay orders on recovery from defaulters," says K.K. George, director, Centre for Socioeconomic Studies, Kochi. Many experts say the measures lack sensitivity and need political consensus to be effective. "The steps are typical of solutions formulated by the IAS club," says M.N.V. Nair, former dean, Indian Institute of Management, Bangalore.

The financial mess aside, what has brought the state Government more discomfort is the "broiler scam". Sales-tax exemption given on broiler chicks reared in the state was hijacked by big poultry farmers from outside, causing a loss of about Rs 80 crore to the Government. After the scam was unearthed, the Government withdrew the exemption, punished the officials but spared the finance minister who pleaded ignorance.