Kerala Electricity Minister A.K. Balan has said an increase in power tariff is inevitable to bridge the huge gap between expenditure and income of the Kerala State Electricity Board.In order to avoid raising the tariff, the State government has not been able to give subsidy, owing to the financial crunch Kerala is facing.
The government was giving subsidy to farmers and the Scheduled Castes and Scheduled Tribes, this amount was not paid to the Board, and the arrears on this account was Rs.3,000 crore.
On top of that, the Board had incurred an additional expenditure of Rs. 700 crore for increasing the wages of its employees.
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