AP has been in crisis post bifurcation. The situation has only got worse in the past four years due to the failure of State and Central Governments. It has come to the stage that State Government has no money to pay salaries.
Salaries for the month of March is yet to be paid for 22,000 Employees. Though the TDP Government projects it as a software glitch resulting in the freezing of bill payments, Cash Crunch is something nobody could deny. Altogether, There are close to 8 lakh state government employees and pensioners. Salaries were paid to them only on April 7th.
Lack of sufficient funding from Centre is the major reason behind cash crunch. AP is yet to receive Rs 3000 crore for Polavaram Project and Rs 350 crore for development of backward districts. Payments to the tune of Rs 8000 crore are yet to be made. Pending Bills with the Treasury touched Rs 1,500 crore.
TDP Government hasn't paid the remuneration to artists who conducted cultural shows in all the 175 Assembly segments in January as part of Janmabhoomi programme. Does the government don't have even Rs 3 crore for payments of artists whose services were used for various programmes?