The Andhra Pradesh finance ministry has reportedly advised all the departments to postpone any new proposals and directed them not to encourage additional payments for works in progress.
The department has been trying to cut down expenditure in all possible ways, due to colossal gap between the income and expenditure and the adverse impact of GST and demonetisation
There is no progress in the government’s exchequer from the beginning of fiscal and the centre on its part has been reluctant to extend financial help. The government is struggling to meet the financial needs of paying salaries to government employees and implementing welfare programmes.
According to The Hans India, Finance Ministry intimated the Chief Minister’s Office to recommend to Chief Minister N Chandrababu Naidu not to announce or assure major projects and works further. Projects like Metro Rail in Vishakapatnam and Vijayawada cannot be instantiated any time soon.
Due to this instruction all other departments are facing a crunch and are opting to take a different approach by contacting ministers and other influential leaders.