More than a year-and-a-half after bifurcation, the Andhra Pradesh government still struggles to fill up its coffers as it has just reported a huge deficit of Rs 12,000 crore.

"We are staring at a revenue shortfall of Rs.17,000 crore to Rs.18,000 crore in the last quarter and it could have a huge impact on sustained development unless Centre without further delay releases Rs.12,000 crore revenue deficit grant pending for the year 2014-15," official sources told The Hindu.

The report also adds that some senior government officials were surprised about chief minister N Chandrababu Naidu's runaway expenditure as he is known for his cautious approach.

The Times of India reported that there were several instances where the government could not control the expenditure in various departments, like the Godavari Pushkaram, where the government had earmarked Rs 300 crore and ended up spending over Rs 1,600 crore. Another Rs 100 crore was spent on the renovation and relocation of the chief minister's camp offices in Hyderabad and Vijayawada, while the total tour bill between the two cities crossed Rs 40 crore. 

The massive 43 per cent hike in salaries of government staff has also been attributed to the deficit. 

The state government is now making last minute efforts to secure funds from the Centre under bridging of revenue deficit, Polavaram project, central institutions, gap funding and special assistance, to come out of the financial crisis, the TOI report added.