Already Andhra Pradesh State is already in deep neck debts. Over and above, there are new penalties that are pushing the State into a dilemma. It is also known that Andhra Pradesh was declined of a Special Status too. Latest is that, because of Naidu, State will face huge losses.
According to the Election Commission, by 2020 March 31st, the Panchayati Elections must be completed in Andhra Pradesh State. These Elections were supposed to be conducted in 2018 August itself. But as 2019 Elections were nearing, Chandra Babu Naidu did not want to take risk.
Therefore, he had appealed for a postponement on the Panchayat elections. So, many funds that were supposed to come to State Panchayats were kept on hold. Now at least to finish it by deadline there is an issue on reservations that TDP raised in High Court. So, penalty could rise upto ₹3,200 crores might not be sanctioned to Panchayats.