AP government’s cash crunch delays payment of salary, pension

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

According to reliable sources in the Finance Ministry, about 50 percent of state government pensioners and 20 percent of employees of different categories are yet to receive their pension/salary. G Sita Mahalakshmi, a retired high school teacher, said, “I am waiting for my pension for the last time since July 1, but haven’t received it yet.” business Line. He said the delay in the time of pandemic is more ‘worrisome’. According to a senior Union Bank of India official, who is the convener of the State Level Bankers Committee (SLBC), several pensioners were inquiring from bank branches as to why their pension has not been credited. In recent months, delays of two to three days in salary disbursement have become ‘common’, said a retired sub-treasury official on condition of anonymity. “But this is the first time we have entered the second week of the month without pay,” he said.

liability to grow

According to a senior official, the impact of COVID-19 and the ‘high’ expenditure on welfare schemes is putting the state government in financial trouble. As per Budget 2021-22, the revenue expenditure for 2021-22 is proposed to be ₹1,82,197 crore, which is an annual increase of 15 percent over 2019-20. This expenditure includes payment of salary, pension, interest and subsidy.

In the current financial year, outstanding liabilities are estimated to be 36.5 per cent of GSDP, higher than the revised estimate for 2020-21, which was 35.2 per cent of GSDP. Outstanding liabilities are expected to increase from 31 per cent in 2019-20 to 36.5 per cent in 2021-22.

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