AP forcing corporations to pool funds to keep fiscal crisis at bay

Hyderabad, Oct 31: The cash-strapped Andhra Pradesh government is not only directing all departments to stop spending money, it is also pressuring at least six corporations to pool funds with the state treasury. To stave off its cash crunch, the AP government had identified at least six corporations for fund pooling. The six corporations include AP Mineral Development Corporation, AP Beverages Corporation, AP Pollution Control Board, Industrial Infrastructure Corporation, Unban finance Infrastructure Development Corporation and Marketing Federation. The AP government is either asking or pressuring these corporations to credit their funds into the state treasuries. Though the government directed the corporations to credit surplus funds into the treasuries, many of them appear to be reluctant to do so. APMDC was asked to credit Rs 300 crore, but it deposited just Rs 100 crore. At the same time, the government is issuing directions to all the departments to stop spending their funds. It looks like the government may also pool these funds too. Meanwhile, the government had stopped paying any bills expect urgent bills.