New Annual Billing Rule: The Andhra Pradesh government has made major changes to its bill payment system. The Finance Department has issued new orders ending the tradition of carrying forward unpaid bills to the next financial year. From now on, all pending bills must be registered freshly each year.

New Annual Billing Rule

This marks a serious reform in the state’s financial management. Contractors and vendors must now submit bills annually instead of waiting years for clearance. The older system created a burden of unpaid bills over time. The department canceled this system through a directive issued on April 9.

Contractors Express Concerns

Previously, the Finance Department would push pending bills into the next year. This caused delays and confusion. Now, departments must register new bills for each financial year. Contractors are concerned. They say resubmitting old bills is difficult and time consuming.

Budget Allocation and Revenue Gap

Government payments require proper budget allocations. Andhra Pradesh earned Rs. 1.74 lakh crore in 2023-24. In 2024-25, revenue dropped by around Rs. 20,000 crore. The 2025-26 budget is estimated at Rs. 3.25 lakh crore. There is a major gap between income and expenditure. The state is covering part of the shortfall through loans.

Rising Yearly Expenses

Each year, the government spends Rs. 25,000 to Rs. 50,000 crore on emergencies and schemes.But spending often does not align with revenue. Earlier, budgets were released quarterly. Now, political priorities are influencing the financial flow. Departments are not always able to match expenses with the actual income.

Process of Budget Distribution

Each department gets budget allocations in advance. After administrative approval, officers plan expenses. They release work orders and purchase orders accordingly. Completed works generate bills. These payments now occur directly through the Finance Department. Bill clearance depends on available funds and the importance of work.

End of Old Billing System

Previously, old bills were carried forward with new numbers. Some payments were delayed for four to five years. This system is now scrapped. Unpaid bills will no longer be transferred to the next year. Contractors say this creates confusion and additional effort.

Contractors Face Financial Strain

Nearly Rs. 25,000 to Rs. 30,000 crore worth of old bills are pending. Without extra budget, it is hard to process them again. The Finance Department is following a zero-budget strategy to reduce pressure. But contractors see it as a burden and fear serious consequences.

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