Andhra Pradesh Govt Stops 'All Payments' And Salaries

The Andhra Pradesh government issued an extraordinary circular directing all treasury and pay and accounts offices across the state not to make any payments until further orders. This sudden decision comes amidst a severe financial crisis the state is passing through. The `stop payment' orders will be in force until the salaries for the nearly six lakh employees that total up to Rs. 2,500 crore are paid on February 1.

It is learnt that the government is facing acute financial crunch due to unplanned policies and meager central assistance. 

Chief Minister Chandrababu Naidu issued a 'red alert' to all employees and finance department not to issue any payment till the further orders and warned if anybody do the 'mischievous', they will not be spared anymore.

This is evident that state plunges into acute financial crunch and need immediate help from the centre, according to financial pundits.