Kerala finance minister KM Mani has clarified that there was no ban on recruitment, and only an interim stay on creating new posts had been recommended.
He said youth organisations of various political parties, including Youth Congress, had mistook it as a blanket ban of fresh recruitment to government services in the light of the latest financial crisis. The government also had no plans to raise the pension age from the existing 56 years, he said.
"There will be no decision on the part of government that will adversely affect employment opportunities," Mani added. He also said promotions and appointments in existing designations won't be affected by the decision.
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The state is in a deep financial crunch now and had opted for an overdraft facility to raise around Rs 250 crore in order to meet salary and pension expenses during the Onam season.
The government has asked additional chief secretary KM Abraham to submit a report recommending various avenues to raise the revenue of the state.