The Andhra Pradesh Appropriation Act, 2020 has been notified on Thursday night after Governor Biswabhusan Harichandan gave his assent to the Bill, which will now enable the state government to make expenditure, official sources said.
Earlier this week, on July 1, the state could not pay salaries to its staff for June as the Appropriation Act did not come into force, pushing the government into a virtual financial shutdown.
The crucial Appropriation Bill received the assent from the Governor after Assembly Speaker T Sitaram sent the file and accordingly the Act has been notified.
With this, the government can now go ahead with the expenditure as per the Budget for the year 2020-21, official sources said.
The Appropriation Bill, passed by the state Assembly on June 16, could not get through in the Legislative Council because of the tussle between the ruling YSRCP and the opposition Telugu Desam Party (TDP), resulting in a deadlock.
The Council witnessed chaotic scenes as the TDP, which has a majority in the House, refused to take up Bills passed by the Assembly, where the YSRCP has a majority. As a result, Bills passed by the YSRCP including one to decentralise the state's capital, were not taken up.
In the pandemonium that ensued, the Appropriation Bill was also not taken up as the House had to be adjourned.
The Vote-on-Account Ordinance issued in March elapsed on June 30 but the Appropriation Bill, which paves the way for budgeted expenditure, did not become law.
As per the Constitution, a Money Bill is deemed to have been passed by the Council if it is not returned to the Assembly within 14 days.
As the 14-day period ended on Wednesday night, Speaker Sitaram sent the relevant file to the Governor.