AP government diverts Rs 18,000 crore into fixed and savings accounts

Hyderabad: A few Andhra Pradesh departments and corporations have diverted around Rs 18,000 crore into fixed and savings accounts instead of spending them on schemes and projects. Finance department officials were shocked to know that such a huge amount was locked in various banks. The departments have been parking some funds in fixed deposits, some in saving accounts and some in current accounts. The state government has sanctioned 42 banks to be used though most of the departments deposit money in only about 15 banks.

Generally, departments deposit funds in the banks for a while after sanction of funds by the Finance department and draw them whenever required. But instead of spending the money on schemes, some departments have just kept the money lying in banks. By June, the departments and corporations had deposited more than Rs 10,000 crore in fixed deposits in various banks.

They had deposited Rs 3,632 crore in savings accounts and Rs 4,458 crore in current accounts. This, despite the Finance department being starved of funds. Senior finance department officials said that they have received account details from only 11 banks and they still have to receive the details from five to six banks.  Money has mostly been deposited in nationalized banks like SBI, SBH and Andhra Bank while private banks like ICICI, HDFC etc. have also been used as they give more interest. A senior officer said that for depositing such huge amounts, some banks give commissions to department officials and also easy personal loans.