Highlighting the ongoing fiscal crisis in the state, there are reports that the Reserve Bank of India (RBI) on had sent an alert on Monday to the AP government which is now making TDP government here nervous and also more cautious
Making it clear that AP has indeed crossed the `manageable limits' of overdraft, the bank also reportedly cautioned the government saying it wouldn’t be left with any options but to take action.
This would also include freezing of accounts and halting of all financial transactions, in case AP is unable to repay the overdraft amount in the next 10 days. Even Monday morning AP government had availed overdraft which had crossed Rs 4,000 crore and is all set to reach Rs 5,000 crore in case the salary and pension bills for March are also forwarded.
Ajey Kallam, special chief secretary of finance, of AP confirmed this saying that they had to pay Rs 350 crore towards salaries and Rs 130 crore for pensions yesterday and they have no sources at all to raise the funds.
