HYDERABAD: In all probability, the State government will use 'ways and means advance' option to avert the present financial crisis. It will also release money for the bills on a selective basis to reduce expenditure in the near future.
Ways and Means Advance (WMA) is a temporary loan to be given by the Reserve Bank of India (RBI) to State governments. The WMA word was popular during N Chandrababu Naidu’s regime in the combined State.
With the state revenue plummeting to a record low after demonetisation, the only option before the State government is to resort to RBI for Ways and Means Advance.
Asked about the State going to use WMA this month, an official in the finance department told Express on Tuesday that they are weighing all options and take a suitable decision.
Sources indicated that the State would get Rs. 1500 crore immediately by using Ways and Means with less interest rates so that the government could pay salaries to its employees in December without any problem.
The State government is also likely to take the harsh decision of “stop payment” for clearing pending bills to contractors and others. Before cancellation of big currency notes, the State was releasing money on a priority basis. After fall in its revenue in the last one week, the State government would delay the payments to irrigation contractors and others, who can wait for some time.
The immediate priority before the State government was to clear salary and pension amounts and also Asara pensions. This means, clearing fee reimbursement dues to students would now again take a back seat. The state government has recently raised Rs. 1500 crore through the sale of securities.