Andhra Pradesh government has delayed salaries for its employees in a desperate measure to offset the drain of resources on populist measures like loan waver and free power.
The Rs 2,200 crore bill for January salary includes pensions, which, on the directions of Chief Minister N Chandrababu Naidu, will be cleared in phases.
For the second time since it was voted to power, the Chandrababu Naidu government has resorted to ‘ways and means’ advance of Rs 950 crore to pay salaries for January.
The state is yet to pay salaries for the 35,000 outsourced employees. It had borrowed Rs 1,000 crore from the RBI last month as per the FRBM norms.