Andhra Pradesh is in a financial crisis right in the first month of the new financial year. Since there is a mismatch of income and expenditure, the finance department has stopped bills in all the departments. There are 3,685 Crore worth pending bills in just one month.
There are bills worth 1,926 Crore in the Water Resources Department with Polavaram bills of 843 Crore being the highest. These pending bills can also hamper the pace of project works. There are also pending bills in a crucial department like the Medical and Health Department which is crucial in this pandemic.
In the last financial year, there are pending bills worth 40,000 Crore in Andhra Pradesh, and 3,685 Crore worth bills are already added in the first month of the new year. There is a strong reluctance in the contractors in taking up any work with Andhra Pradesh Government since it has become infamous for sitting on the bills.
On the other side, there are reports that the Central Government has certain clarifications regarding the haphazard loans and bad fiscal management of the state.
