Funds crunch forces AP to more cost control measures

Suffering from severe funds crunch, Andhra Pradesh government is pulling its purse strings to maintain fiscal discipline. The finance department had urged all the departments not to demand additional funds until next financial year.

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The finance department had given strict instructions that all the departments should so savings within allocated budget to make a request for the additional expenditure in case of emergency. Emergency will mean very special reasons, they say.

The state which has inherited huge revenue deficit along with high salary and pension bills, is finding it tough to maintain its day to day affairs with no help from the central government. Further, the increase in social security pensions and additional expenditure for Godavari Pushkarams and Hudhud cyclone relief activity is tighten the state finances.