In a shocking move AP govt issued a circular directing treasury, pay and accounts offices all over the state to halt payments until further orders.As per reports the order issued to allocate funds to the salaries of Employees.

The “STOP PAYMENT” order will come into force from this moment when the salaries of nearly 2 Lakh state employees summed to Rs. 2,500 Crores are to be paid on February 1.Finance Minister Yanamala says deficit in the budget increased from Rs 15,500 crore in June 2014 to Rs 20,000 crore.

He also gave hints about state government plans to hike the "User Charges" of power bills in order to bail out the state from the financial crunch. After the bifurcation, the newly formed State of Andhra Pradesh is in a precarious financial position.

Centre’s assurance to tide over revenue deficit of Rs.16, 000 Crore is still awaited. AP CM Naidu wants Centre to empathise with State’s plight and release funds. All the development works taken up in AP have been stopped due to severe financial crisis.

As per reports AP government is mulling over to levy VAT on fuels Pertol, Diesel just like Telangana state to meet the financial woes