Govt of India: Center shock for AP Govt

by Kiran Gall – Bureau Chief (Andra Pradesh & Telangana)

The central government has recently withdrawn Rs.982 crores given to Andhra Pradesh in the form of GST and other forms. The state government is not holding its breath as it expects the funds to come.

Amaravati: The central government has withdrawn the Rs.982 crores it had recently given to Andhra Pradesh in the form of GST and other forms. The state government is not holding its breath as it expects the funds to come. The government is in financial crisis. Along with this, nearly Rs.1000 crores were not received. Center releases GST share funds to all states every month. Thus, out of the total amount given to all the states recently, Andhra Pradesh has to receive Rs.682 crores. Apart from this, Rs.300 crores have been given to the state but none of it has been received. The officials of the state finance department inquired that the old dues were due from Andhra Pradesh and the amount was adjusted in that form. With this, the officials of the finance department have no direction.

Any day-to-day revenue calculations

The government receives information from the Reserve Bank every night telling how much amount and in what form has come to the state treasury. It contains details of the state’s income, debts taken, payments, and how much money has been received from the center on that day. Only one or two top officials in the finance department know this information. Even though the orders were issued that the funds have been released by the Centre, the higher officials noticed that the amounts were not deposited, but it was found that they were excluded in the name of old dues. If the issue of bringing them back from the center is a step forward, now the financial machinery is scratching its head as it does not understand how to adjust in the situation of not being able to pay the salaries.

The actual crisis… this is another problem

The state is in financial crisis. There is a dire situation where no one can tell who will get salary and when they will get pension. Even many IAS officers are still not paid their salaries. The same is the case with department heads. Even till the 15th of this month, the salaries have to be deposited to some then and now to some. The doors of the treasury were closed so that there was no way out. It is a big shock that the Center has withdrawn the Rs.982 crore given by it in such a poor condition. The state government has to pay Rs.5,500 crores including salaries and pensions to the employees by one date. These situations make it clear that the financial system of the state, which should have made these available, has collapsed and how bad the financial management is.

On the other hand is the threat of bill payment disputes

There are innumerable cases in the courts on pending bills to be paid by the state government. It is known that some government officials are working on how to escape from the pressure of their payments. Efforts should be made to bring all those cases to arbitration. It is reported that efforts have been started to hire some retired judges for this purpose.

Employees, pensioners and teachers in the state are waiting for their salaries daily. They are unable to pay EMIs and meet other needs. At present some are being paid daily. It is expected that the 15th of this month will pass when all the payments are completed. Generally the State avails debt facility in the name of ways and means, special drawing facility and overdraft facility. The amount that can be used in the name of overdraft is limited. Moreover, they have to be repaid within a certain period. There are difficulties in that too.

The state still has to pay Rs.2,900 crore in pensions and salaries. There are limits to the state government’s ability to borrow in the open market. AP has already crossed its limit. That means there will be no debt this month. On the other hand, there is no opportunity to borrow from corporations. At the beginning of this month, Rs 2,000 crore was borrowed from banks in the name of some corporation and adjusted for the needs of the state. It is reported that the government has already availed loans of Rs.8,300 crores in the name of liquor money and another Rs.12,000 crores in the name of other corporations.

There is a situation where salaries and pensions have to be paid only with daily collections. Generally the government has an income of Rs.400-450 crores per day. In a month up to Rs.4,500 crore has to be paid in the form of debts and interest. This figure also includes the funds provided by the government to repay the debts of the corporations. In this situation, if there are no other requirements, how much will be paid for salaries and pensions in the daily income? It is reported that the government has already availed loans of Rs.8,300 crores in the name of liquor money and another Rs.12,000 crores in the name of other corporations. There is a situation where salaries and pensions have to be paid only with daily collections.

Generally the government has an income of Rs.400-450 crores per day. In a month up to Rs.4,500 crore has to be paid in the form of debts and interest. This figure also includes the funds provided by the government to repay the debts of the corporations. In this situation, if there are no other requirements, how much will be paid for salaries and pensions in the daily income? It is reported that the government has already availed loans of Rs.8,300 crores in the name of liquor money and another Rs.12,000 crores in the name of other corporations. There is a situation where salaries and pensions have to be paid only with daily collections. Generally the government has an income of Rs.400-450 crores per day. In a month up to Rs.4,500 crore has to be paid in the form of debts and interest.

This figure also includes the funds provided by the government to repay the debts of the corporations. In this situation, if there are no other requirements, how much will be paid for salaries and pensions in the daily income? 400-450 crores of revenue. In a month up to Rs.4,500 crore has to be paid in the form of debts and interest. This figure also includes the funds provided by the government to repay the debts of the corporations. In this situation, if there are no other requirements, how much will be paid for salaries and pensions in the daily income? 400-450 crores of revenue. In a month up to Rs.4,500 crore has to be paid in the form of debts and interest. This figure also includes the funds provided by the government to repay the debts of the corporations. In this situation, if there are no other requirements, how much will be paid for salaries and pensions in the daily income?