Hyderabad: With the financial crisis deepening in Andhra Pradesh, even a rupee can't be paid by the treasuries without the permission of the finance department. So far, treasuries could pay bills below Rs 1 crore without permission.
Finance department has issued instructions to this effect, and also asked treasuries not to give Letter of Credit (LOC) to any government institution without its clearance. In the last 20 days, as high as Rs 400 crore worth of bills are pending. Also, almost the entire development works are at a standstill.
Officials of many departments are making rounds of finance department, seeking release of funds. Contractors of various works are also making a beeline to the Secretariat for clearance of their pending bills. Treasuries can, however, give LOCs to universities and some other institutions. Once the LOC is given, institutions can draw funds at their will.
“The state government has instructed the treasuries not to give LOCs to government institutions. With much difficulty, the finance department is making efforts to see that payment of salaries to government employees is not affected,” a senior official said.
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