news Wednesday, January 21, 2015 - 05:30
The News Minute | January 21, 2015 | 8:25 am IST The Andhra Pradesh government on Tuesday sent an SOS to the Centre stating that it did not have funds to even pay salaries to its employees for the month of January. The state government has also written a letter to the Union finance ministry requesting an immediate release of Rs 2,500 crore so as to pay the salaries for the 5.67 lakh employees on its payroll. Reports suggest that the state presently has around Rs 1,200 crore in its coffers but the amount is not sufficient if one were to add the cost of the bills of establishment and maintenance for January. The recent decision of the TDP regime to increase the age of retirement of its employees from 58 to 60 also adds to the degrading situation. The state also promised increments to some employees though this has been put on hold. Though, AP chief minister Chandrababu Naidu has signed various MoU's with companies ready to invest in the state and in turn portraying a well developed state, these plans can only be implemented in the long run. The current scenario is grim and the opposition parties are expected to come down heavily on the TDP for the situation.  The state government which has already taken a loan from the Reserve bank can only hope that the centre clears its funds and it can squeeze out of the current financial crisis it is in. Tweet Follow @thenewsminute
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