Crisis: AP government halts development works

Cash strapped Andhra Pradesh government has stopped the clearance of bills for all the development works in the state owing to the impending financial crisis of the state. This step was taken to ensure the government pays salaries to its staff in February.

The deficit in the truncated state is increasing month after month. It had reached around Rs 20,000 crore from Rs 15,500 crore now and the Central government which was supposed to cover the deficit in budget for the first year, according to the Andhra Pradesh Reorganization Act, has remained mostly silent so far.

There are 5.67 Lakh government employees working in the state and their salaries per month will come up to 2500 Crore for the government. It is known that Andhra Pradesh has inherited deficit budget in the state division as Telangana, the new state walked away with the cash cow, Hyderabad leaving the truncated state with no capital too.