The Center has withdrawn over Rs 1,000 crore disbursed in the recent past to the cash-strapped Andhra Pradesh government, a state finance department official indicated on Tuesday.
On November 25, the Center released Rs 682 crore as GST compensation to AP out of Rs 17,000 crore to all states, but the amount has not reached the state coffers.
More than Rs 300 crore was released this week in other heads but even that money was not credited.
“In fact, the Center has withdrawn around Rs 1,000 crore, adjusting it for (state) devolution against some old liabilities,” said a top finance department official.
Unpaid bureaucrats told PTI that half the IAS officers in the state have not been paid salaries till date this month.
“They are making staggered payments in which some have received salaries and many have not. We are hopeful that it will be approved this week itself.
Employees of at least five departments in the state secretariat are yet to receive their November salaries.
“So far this month the pension has been completely stopped. Teachers working in model schools and Kasturba Gandhi schools also did not get their salaries.
The state government had already exhausted its annual borrowing limit of Rs 48,000 crore before the third quarter, leaving no room for open market borrowing.
A state finance department official said, “We will take up the issue with the Union finance ministry as it is for the Center to settle the pending dues dispute.”