Expenditure overdrive forces AP to go in for Rs 100cr overdraft

Hyderabad, Oct 10:For the first time this fiscal, the cash-strapped Andhra Pradesh government has been forced to go in for an overdraft of Rs 100 crore to meet its expenses on a day-to-day scale. The main reason for this financial crisis is the government's expenditure overdrive for non-productive schemes and its eagerness to showcase the grandness of the foundation stone laying ceremony of Amaravati on October 22. Sources in the finance ministry said, the state government will have to clear the overdraft within 10 working days, which coud be a difficult task unless either the Reserve Bank of India or the central government comes to its rescue. In view of the financial crisis, the Yanamala Ramakrishnudu-headed finance ministry has stopped making payments for all the bills to all department. It also stopped release fo funds to the Chief Minister N Chandrababu Naidu's several pet schemes and projects. Except for salaries and pensions amounting to Rs 2,200 crore, the government is not releasing funds for any bills. The government is resorting to the overdraft facility as it has over and above the ways and means limit of Rs 770 crore. Sources said, the government is likely to raise Rs 1,500 crore through the public debt mode on October 11. On the issue of revenue realisation during the first half of the 2015-16 fiscal, the government is staring at a shortfall of Rs 12,262 crore. The overall revenue target for the first half of the fiscal year was Rs 56,205 crore, while the revenue realised is Rs 43,944 crore.