With no money in coffers, TS financial health critical
The TS government is facing a deep financial crunch and it is not in a position to release funds to various departments and welfare schemes as per the allotment made in the budget. Majority of the state’s revenue goes towards salaries, pensions, interest payments and subsidies.
The state government is diverting funds from other places, including about `1,000 crore given to Centrally-sponsored schemes and UDAY bonds funds of about `1,423 crore.
In the Budget, the state government had allotted `1,000 crore to Most Backward Classes but even after three months no money has been released. Out of the `100 crore assured for the Brahmin community welfare, the government has released `10 crore for the construction of the Brahmin Samkshema Parishad office building. Orders have been issued to release `25 crore but money has not been released.
Despite issuing Budget release orders, the finance department is not releasing funds.
Of the `350 crore allotted for the Musi river development, the government has not released any funds. No money has been released of the `500 crore allotted to the washermen and Nayi Brahmin community.
On average, the state government is getting about `7,000 crore per month through state tax and non-tax revenues and grants from the Centre. More than half of this goes towards salaries and for other expenses.
The state government is left with `800 crore, and borrows about `2,000 crore on average from the market. This leaves it with only `2,800 crore to meet other expenses. Sources in finance department said that according to Budget allocations the state government requires about `3,000 crore per month.
Pending bills are mounting. The government has not cleared bills from the previous financial year, and the pending amount has reached `8,000 crore.
Except some “important” bills, the state government is not paying any others in any department. For Mission Bhagiratha, the government is borrowing outside the Budget and contractors have no problem in getting the bills cleared. Many contractors handling work in other departments which are being funded through budgetary allocations are making the rounds of the Secretariat every day in hope of receiving some payments.