Hyderabad: Telangana government has frozen all payments, except salaries of staff and pensions, to adjust Rs 5,000 crore that will be given as farmers’ sop.
Though no official orders were issued by the finance department to stop payments, sources in treasury department have said that they have stopped payments based on oral instructions given by ‘higher ups’.
With this, implementation of infrastructure projects and welfare schemes have been hit. Contractors have stopped works as their bills are pending with the treasury department. Social security pensions, scholarships, fee reimbursement and Aarogyasri have been affected.
The government needs to adjust over Rs 5,000 crore at one go in May for farmers’ sop and has started imposing restrictions on payments from February.
Though imposing restrictions on payments is a common phenomenon before the presentation of Budget every year, it has started much in advance this year. Normally, the state government presents Budget in the second week of March and restrictions on payments will be imposed from mid-February. However, this time, the restriction started in the first week of January itself.
Instructions were sent to treasury department to not release any payment, except salaries and staff pension. Out of 31 districts, restrictions were first imposed in 10 districts from January and all other districts were covered now in February.
