Hyderabad: A monthly gap of Rs 5,000 crore between income and expenditure is posing a significant challenge for the state govt. According to govt sources, the state requires Rs 22,000 crore monthly to meet various expenditure needs, while its revenue stands at only Rs 17,000 crore.
This shortfall is hindering the govt's ability to fund schemes and other expenditures beyond salary payments. As a result, the state govt has instructed the heads of departments to implement austerity measures across all areas, including cost-saving in office furnishings, utilisation of official vehicles and energy conservation, among others.
A circular was also released stating that "these measures are also intended to promote fiscal discipline without restricting the operational efficiency of the govt and optimise available resources."
The govt has instructed officials to travel outside the state only when absolutely necessary. Sources indicate that the state generated Rs 17,000 crore, with approximately Rs 5,000 crore allocated for salaries and pensions, and another Rs 6,500 crore set aside for loan repayments.
The monthly expenditure for the govt includes payments towards welfare schemes, which has created a cash crunch, making it increasingly challenging to settle outstanding bills.
By the end of the former BRS govt tenure, it was projected that the state govt would be burdened with a total debt of Rs 7 lakh crore (including both budgeted and off-budget borrowings), along with pending bills amounting to Rs 40,000 crore. Sources said the state govt is struggling to pay the medical bills of its employees as well.
In the meantime, union leaders representing the employees approached the govt on Thursday, urging it to clear bills under Rs 10 lakh. They highlighted that since the 2022-23 period, many employees and teachers have their bills pending with the govt.
"These bills encompass GPF, medical bill reimbursements, vehicle rental expenses, and election duty-related costs. Many are facing financial difficulties due to these outstanding payments," they informed govt officials.