AP stops payments to contractors to pay Govt staff salaries

Hyderabad, Jan 28, 2015: Embarrassed with the delicate financial situation , Andhra Pradesh Chief Minister Chandrababu Naidu has instructed all departments to stop payments to developmental activities forthwith. He took the decision to facilitate payment of salaries to the Government employees for the month of January. As a result, all payments to contractors registered with different departments will be stopped till further orders. With his instructions, all developmental works in the state have also come to a standstill as contractors will not go ahead with their works without their bills being cleared. According to the Finance Minister Yanamala Ramakrishnudu, the financial situation of the government has reached a delicate position. "The budget deficit has gone up to Rs.20,000 Cr from around Rs.15,500 Cr last month," he said explaining the situation. This also means no fresh developmental works will be taken up in the immediate future. Chandrababu has revealed that he has requested the Centre to come to the aid of the state. It is to be seen how the Narendra Modi Government will react.