Kerala: Technology strips officials of risk allowance

Thiruvananthapuram: Until technology reared its head, government officials handling public money in hard currency over Rs 1 lakh were treated like minor VIPs by the state. A police cordon was thrown around them, and they were seated in guarded rooms. And for the huge risks they took guarding the chests of money, they were also paid a monthly risk allowance in addition to their salary. All of a sudden, like a ruthless stage manager, technology has pulled the curtain down on their grandeur.  With all government transactions going electronic, these officials have now been deprived of their risk allowance. Such a facility was generally enjoyed by heads of departments and head masters or principals of schools who were deputed to disburse salaries to their subordinates.

For those handling currency between Rs 1 lakh and Rs 2 lakh, the special allowance was Rs 350. For those handling between Rs 2 lakh and Rs 5 lakh, it is Rs 400. Forthose handling between Rs 5 lakh and Rs 10 lakh, it is Rs 450. For those handling hard currency above Rs 10 lakh, it was Rs 500. “This special allowance was introduced considering the risk involved in the handling of cash drawn from treasuries in bulk mainly for the payment of salaries,” said finance joint secretary G. Asok Kumar. “But the successful implementation of Integrated Financial Management System (IFMS) for the financial transaction of the government, cash transaction of the government has undergone drastic changes and now almost all salary payments and other claims including contingent claims are transferred electronically to the bank or Treasury Savings Bank account of employeees and other stakeholders. Thus the cash sections in offices are now not dealing with physical cash,” Mr Kumar said.

However, before IFMS became operational, things were different. Here is what the minutes of a meeting convened by the Chief Secretrary in 2013 said: “lt has also come to the notice of Government that, Drawing and Disbursing Officers are facing problems in handling huge amount of cash due to growing volume of salary and also the risk in retention of undisbursed amount in cash chests.”