VIJAYAWADA: At a time when the government is planning to speed up the development works and focus on implementation of welfare schemes, the financial position of the State, which is alarming, seems to hamper its plans. It is learnt that besides going in for overdraft, the government has also kept bills worth thousands of crores of rupees pending and issued oral orders to various departments not to clear any bills until further orders.
The government has made it a practice to go in for ways and means as and when it requires funds to pay wages of employees.According to sources in the finance department, the financial position of the State is alarming now due to decline in the revenue collection coupled with delay in release of funds by the Centre due to its alleged non-cooperative attitude towards AP.
Admitting that there is pressure on the State finances, Secretary (Finance) Peeyush Kumar said that expedition of development works, which were originally planned in the fourth quarter of the current fiscal, is one of the reasons for the present financial stringency.
However, he was quick to add that the position will improve in the next quarter and exuded confidence that there will be no significant financial deficit by the end of this fiscal.Meanwhile, the TDP government is keen to clear the debt redemption of farmers amounting to Rs 8,200 crore as the general elections are round the corner.