Hyderabad: The finance department is struggling to strike a balance between allocation of funds for welfare schemes and day-to-day payments and other expenses.
Chief Minister K. Chandrasekhar Rao and his ministers are angry with the department for halting funds for welfare schemes. The department is left with no money after paying salaries and pensions and clearing bills to contractors.
During last Monday’s Cabinet meeting, the CM had expressed anger at the functioning of the finance department, due to which the government was coming under fire from the Opposition parties, students and farmers’ organisation for non-payment of fee reimbursement and Arogyasri, crop loan waiver arrears.
The Congress has launched a 'signature campaign' to collect 51 lakh applications from students and farmers seeking payment of arrears. Mr Rao is believed to have asked finance minister Etela Rajender and senior ministers to introspect why there was shortage of funds when all revenue generating departments are witnessing over 30 per cent growth.
With focus on the finance department, officials were on their toes to prepare a report on the financial condition of government. While the income has increased by 30 per cent, the expenditure has doubled from last year. This has left the department with little money for fee reimbursement and Arogyasri, crop loan waiver, finance department sources said.
Adding to this, the CM directed the Cabinet to clear all dues within a month, which requires over Rs 5,500 crore. The cash reserves at present can meet only salaries, irrigation projects, Mission Bhagiratha and Asara pensions.
