In an indication of its critical financial position, the State government resorted to overdraft facility on Thursday to tide over the negative cash balance in its account, after almost a gap of 12 years.
The State had been availing ways and means advances for the last few days to the tune of Rs.1,315 crore and technically it could resort to ways and means till the negative cash balance touched Rs.1,540 crore.
However, the Reserve Bank of India (RBI) on Thursday declared Rs. 537 crore availed by the State under its OD account. Earlier in the day, Finance Minister Yanamala Ramakrishnudu indicated that the government might go for the over draft facility in a day or two, in view of revenue shortfall and with no release of expected funds from the Centre to compensate for the revenue deficit.
Replying to the debate on budget, Mr. Ramakrishnudu said that they were hopeful that the Centre would release the promised funds in the next 10 days . The State is expecting funds to compensate revenue deficit, to build capital and Polavaram project.
