The Andhra Pradesh government which is reeling under severe financial crisis has failed to pay salaries for government employees and pensions for retired employees for the month of July.

Normally, the salaries and pensions will be credited to the bank accounts of staff on the first of every month.

But employees and pensioners did not receive the amount even on August 2 (today).

The state government requires Rs 5,000 crore to pay salaries and pensions for staff every month.

According to official sources, the finance department has no required funds to pay salaries, pensions even on August 2.

The finance department is now trying to mobilise loans to pay salaries, pensions tomorrow. The government has put up bonds worth Rs 1,000 crore for auction tomorrow (Tuesday) through RBI.

The balance Rs 4,000 crore will be moblised through other sources.

Since August 1 was Sunday, employees and pensioners expected amount on August 2 (today).

But they are angry and disappointed over not getting salaries even on August 2.