The financial position of the truncated Andhra Pradesh seems to have worsen and the shortage of funds is looming large as the state government decided to stop the payments of various bills with immediate effect. AP government issued an extraordinary circular on Tuesday night directing all treasury and pay and accounts offices across the state not to make any payments until further orders. It's learnt that the 'stop payment' orders will be in force until the salaries for the nearly six lakh employees that total up to Rs. 2,500 crore are paid on February 1.
Although the financial crunch has been there ever since the new state is formed losing its primary revenue source - Hyderabad - to Telangana, Chandrababu Naidu and his team tried its best to overcome it. In fact, Mr Naidu stated that his government is finding very difficult to pay the salaries for its employees.
Even Finance Minister Yanamala Ramakrishnudu openly admitted the situation of AP and stated that state government is planning to hike the "User Charges" of power bills in order to bail out the state from the crunch. Also, government is mulling over to levy VAT on fuels Pertol, Diesel just like its counterpart Telangana to meet the financial woes. With Modi-led Union Government not helping the State despite maintaining that it's "committed" to help and even "forgetting" its promises made ahead of polls and grossly violating AP Reogranisation Act is definitely a worrying situation for the people of Seemandhra.