As a big relief to 5.67 Lakh Government employees employed with Andhra Pradesh and their families, the state government relaxed the frills on treasury regarding payments. The government asked the treasury to release the salaries as it is. All the salaries are now expected to be cleared by the first week of February.
The state government will spend whopping 2500 Crore every month as salaries to its employees. The finances of the state took a severe beating as the deficit increased. As a result, there were doubts all over regarding if the government can afford salaries in February. Chief Minister Chandrababu Naidu paused all the development works in the state and also ordered the treasury to stop all the bills for various projects.
However this can not continue for a long time. The state is in desperate need of Center’s help as the Andhra Pradesh Reorganization Act promised that Center will fill up the first year deficit of the state after it lost the cash cow, Hyderabad to Telangana in the bifurcation.
