With the Andhra Pradesh government resorting to ‘ways and means’ advances to tide over its financial crunch recently and no sign yet of promised funds from the Centre, informal instructions have been sent out to district treasuries to hold back non-emergency bills till February 1 or 2.
The advice has been given to be judicious and prioritise the expenditure given the limited resources available with the government at the moment. One of the priorities is not to default on payment of salaries and pensions that amount to about Rs. 2,500 crore a month, sources said.
Though non-emergency bills are put on hold, the Finance Department apparently cleared bills to the tune of Rs. 600 crore on Thursday, including Rs. 471 crore social welfare pensions, NABARD interest dues of Rs. 25 crore, Rs. 28 crore to farmers who gave their lands for land pooling for capital towards one-time repayment of crop loans not exceeding Rs.1.5 lakh. “This is to say that while the government is walking a tight-rope, it is not a crisis situation as yet. Such adjustments to withhold payments to non-emergency bills are routine,” the sources added.
Meanwhile, the government raised Rs.1,000 crore through market borrowings on Wednesday and could do so at a competitive interest rate of 8t per cent. However officials keep their fingers crossed over release of funds promised by the Centre to the State without further delay to partly make up for its revenue deficit and Central Sales Tax dues of Rs. 700 crore .
As per the procedure, the Union Cabinet should approve the releases so that the amount would be reflected in the supplementary budget in February. But so far the Union Cabinet has not given its approval. Even after Cabinet approval, procedure would take time for the State to get the funds. “ Cabinet approval at least gives a certainty and we can plan our expenditure, ” the sources added.
What however apparently causing consternation in some quarters is Chief Minister N. Chandrababu Naidu’s decision to organise three-day meditation programme for bureaucrats from Friday in a five-star hotel by Sadguru Jaggi Vasudev by spending about Rs.1.5 crore.
“This is ill-timed given the financial crunch. It will disrupt the pace of ongoing budget preparatory meetings too,” said quite a few bureaucrats.
Such adjustments to withhold payments to non-emergency bills are routine, say sources
