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AP Govt’s cash crunch delays payment of salaries, pensions

G Naga Sridhar Hyderabad | Updated on July 08, 2021

Many pensioners were making enquiries with bank branches   -  V Sreenivasa Murthy

‘High’ expenditure on welfare schemes due to Covid impact is pushing Govt into a crisis

For the first time, the Andhra Pradesh government has not fully paid salaries and pensions till the second week of a month though there have been delays in the past for two or three days.

According to reliable sources in the Ministry of Finance, nearly 50 per cent of State government pensioners and 20 per cent of employees of different categories are yet to receive their pensions/salaries. “I have been waiting for my pension for the last since July 1 but have not received it so far,’’ G Sita Mahalakshmi, a retired high school teacher, told BusinessLine. The delay is more ‘worrisome’ in the pandemic times, she added. According to a senior official of Union Bank of India, which is the convenor of State Level Banker’s Committee (SLBC), many pensioners were making enquiries with bank branches as to why their pension has not been credited. In recent months, delay of two to three days in salary disbursals has become ‘common’, said a retired sub-treasury officer who did not want to be named. “But this is the first time that we have entered the second week of the month without salary,’’ he said.

 

Liabilities to rise

According to a senior official, the impact of Covid-19 and ‘high’ expenditure on welfare schemes are pushing the State government into a financial crisis. As per Budget 2021-22, revenue expenditure for 2021-22 is proposed to be ₹1,82,197 crore, which is an annual increase of 15 per cent over 2019-20. This expenditure includes the payment of salaries, pensions, interest and subsidies.

In the present financial year, the outstanding liabilities are estimated to be 36.5 per cent of the gross state domestic product, higher than the revised estimate for 2020-21, which was 35.2 per cent of GSDP. The outstanding liabilities are estimated to rise from 31 per cent in 2019-20 to 36.5 per cent in 2021-22.

Published on July 08, 2021

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