No money for salary and pensions in AP treasury

OMG: Unless the Centre releases Overdraft in two days, the Andhra Pradesh government will not be able to pay salaries and pensions for March.

Sources in the finance department say that Rs 2,500 crore in the next couple of days towards both salaries and pensions for one month. Its overdraft crossed Rs 3,000 crore on Sunday. The state, in fact, has been operating on overdraft since March 21 and it has just 14 days to clear the dues otherwise the Reserve Bank of India will freeze its bank accounts.

AP has decided to pay salaries on April 2 if funds are available, and if the Centre does not release funds, it will have to take an overdraft once again, which, according to finance department officials, will take the state’s total overdraft to Rs 6,000 crore. They anticipate a release of Rs. 650 crore under CST compensation immediately.

However, the state is anticipating a large sum from the Centre in the next two days, before the end of this financial year.That was the secret of AP CM Chandrababu Naidu's visit to Delhi two days ago- to speed up funds release. Union finance minister Arun Jaitley had promised AP Chief Minister Chandrababu Naidu that the funds would be released when the two had met in New Delhi recently. In addition to the CM, senior IAS officers and some ministers are also camping in the national capital to follow up on the funds.