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AP government avoids the burden of OD for now

01-06-201901-06-2019 16:39:41 IST
Updated On 01-06-2019 16:42:37 ISTUpdated On 01-06-20192019-06-01T11:09:41.758Z01-06-2019 2019-06-01T11:08:45.991Z - 2019-06-01T11:12:37.690Z - 01-06-2019

AP government avoids the burden of OD for now

The decisions of new Chief Minister of Andhra Pradesh, YS Jaganmohan Reddy, are bringing sweeping changes in the administration. 

Chief Secretary LV Subramanyam helped the government by issuing a UO note that avoided the government from going to an overdraft in the very first month of its formation. The UO note cancels the works sanctioned before April 1 and the payments for the works that are underway. The value of the works underway will be reassigned and the reverse tendering process will be followed as per the necessity.

The order that stopped the payments for all the engineering works that are underway relieved the exchequer as the government is not obliged to pay the contractors as of now.

The UO note may affect the Polavaram project and other engineering works.

As Chief Minister of AP, Jagan is expressing his views about prudence in expenditure. Sources say that the GO has been issued to avoid unnecessary expenditure in the ongoing works. It seems that the new dispensation is strict about prudence in expenditure and may award works as per that policy. CM Jagan is reviewing every ministry soon after he took over to be prudent in future.

The measures the government is taking are not known completely, but as a whole, the orders by CS stopped payments of thousands of crores avoided the embarrassment for the new government as it need not go for an overdraft in the very first month of taking over. Officers too were relieved as they need not search for the ways to make the payments from the accounts that are blank.

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