Replying to a notice for an adjournment motion on the issue moved by CPI(M)-led LDF opposition, Chandy said the cabinet sub-committee, set up to study the 10th Pay Revision Commission report,had already considered the report two times.
The report was submitted in July last.
Government would not delay implementing salary revision, the chief minister said, adding, "UDF government would take employees into confidence before implementing the revision."
Seeking notice for the motion, A K Balan (CPI-M) said UDF was trying to sabotage the recommendations by delaying it even though the report was submitted six months ago.
More than five lakh government employees and four lakh pensioners would benefit by the revision, he said.
(REOPENS DCM 56)
The report, however, warns that over the August-December period, a seasonal surge in currency circulation and outflows on account of FCNR-B deposits redemption may aggravate the liquidity position.
It can be noted that interbank liquidity slipped back into deficit mode this month, after broadly staying in surplus in July.
Core liquidity surplus averaged Rs 12,000 in July, but has slipped into deficit as payments for G-sec auctions, state loan auctions and monthly indirect tax outflows drained the system.
The RBI is already front-loading liquidity provision to move closer to its objective of bringing the ex-ante liquidity deficit close to neutrality and has already infused structural liquidity of Rs 90,500 crore this fiscal.
Front-loaded liquidity infusions through open market operations will keep money market rates anchored around the policy rates.