Cash strapped AP grasping for breath!

Andhra Pradesh’s finances are taking a severe toll due to severe cash crunch. We are just in to a new month, the state government had already approached RBI for 400 Crore as ways and means. The share in central taxes and the state taxes were enough only for the salaries and the state is now struggling for the rest of the expenses.

[m9ad]

The ways and means are expected to continue for couple of days and the state government is trying to pool in 1500 Crore from selling of bonds. The state can take 770 Crore as ways and means from the RBI. If it crossed the amount, then it will be in the red zone of Overdraft.

The state is hoping that it will receive some help from some central schemes to escape this dire situation. The state government is already sitting on 1500 Crore pending bills and are only clearing the important ones.