Centre Took Back Funds From AP, What About Employees Now?

Wed Dec 07 2022 12:09:47 GMT+0530 (India Standard Time)

Andhra Pradesh suffered a fatal blow with state bifurcation. Without a proper capital city, the state has been going through a rough patch. But the problems faced by the divided state became even more intense in the past few years. The current government is struggling with financial matters.

The growth is not that great and the employees are not receiving salaries and pensions on time. Observers say that every month the state government is borrowing money for salaries and other expenses. Usually, government employees get salaries on the first of every month which is not the case with Andhra Pradesh employees sadly.

Now the Union Government is said to have given a big blow to the Andhra Pradesh government by taking back the funds it had earlier granted. The issue will hurt the state government a bit more as the employees are yet to be given employees.

It is known that the single tax system GST came into existence and the Union government releases the funds for the states every month and around Rs 700 crores were granted to Andhra Pradesh. An additional Rs 300 crores were also granted to the state.

The state government was on cloud nine when the funds were granted for the state this month. But the happiness of the Andhra Pradesh government did not last long as the funds were reportedly taken back and the twist is that the government was not informed about the development.

When the Andhra Pradesh government found that the funds it was to get were not credited to its account the concerned officials asked the officials of the Union Finance Ministry. But the answer they received stunned one and all.

Confirming the development, the Union Finance Ministry reportedly told the state officials that the money was taken back as the state government is indebted to the Centre. Having said that, the state government was reportedly asked to make alternative arrangements.

Looking at the developments we can expect that state employees might have to wait for a longer period to get salaries and pensions. We have to wait and see how the AP govt deals with the situation. New companies are not coming to the state. Seeing the growth, the government is not accepting the demands the employees are making.