Center further adds to AP’s financial woes!

The financial woes of Andhra Pradesh state seem to be no where near ending after the state bifurcation. The state hit by deficit budget is struggling to pay salaries to its employees from this month. Recently, the government has taken 490 Crore ‘ways and means’ advance from RBI.

Adding insult to injury, besides not helping duly, the Central government recently informed the state that it will not release Rs 2,500 crore for the last quarter of the current financial year for schemes sponsored by the Centre. The state government currently stopped clearing various bills to avert the crisis for the time being.

The state government has spent a whopping 3000 Crore in January additionally. The government has cleared the arrears of 1,500 crore sanctioned to the industries sector towards various concessions, and power subsidy for the last 10 years. The enhanced pension scheme, Sankranthi Kanuka also took their toll on the state treasury in the current month.