HYDERABAD: The Andhra Pradesh government which is struggling to even pay salaries, is set to encounter another storm brewing in the form of a massive strike by its employees demanding pay hike. A harried finance minister Yanamala Ramakrishnudu, who admitted that the state was in deep financial crisis due to its empty coffers, will head a key cabinet sub-committee meeting on Monday to try and convince the employees to accept a moderate hike.The employees have, however, unanimously decided not to yield and have demanded their salaries be revised with a fitment of 43 per cent on the lines of what the Telangana government announced for its employees last week. Fitment is a component of the salary which would include DA (dearness allowance) and the existing basic to form the new basic wage.“The pay revision in this case must be the same for both the employees of Andhra Pradesh and Telangana since it is based on the recommendation of 10th Pay Revision Commission (PRC) which was meant for the undivided Andhra Pradesh. Our demands are genuine, and we will take a call when to strike after the meeting gets over,” said U Murali Krishna, chairman of Andhra Pradesh Secretariat Employees’ Forum.They met chief minister N Chandrababu Naidu last Friday and put forth the pay hike demand.Officials in the finance department said the revenue collections from all sources, including tax and non-tax, was not crossing Rs 20,000 crore and the situation was critical ahead of the budget for the next fiscal starting April 1. “With this being the situation, if you consider the demand of the staff pay hike with 43 per cent fitment, it would mean 50 per cent of the state’s revenue would go towards the increment which is just a component of the salary,” said an official.The N Kiran Kumar Reddy regime had constituted the PRC headed by P K Agrawal in 2013, the commission submitted its report in June last, recommending 29 per cent of fitment and Rs 13,000 minimum monthly wage.Not satisfied with the recommendation, employees of both Telangana and AP had demanded 69 per cent fitment and Rs 15,000 monthly minimum wage. And the Telangana government last week announced a fitment of 43 per cent, which the state employees welcomed.While the AP employees’ demand would lead to an additional burden of an estimated Rs 9,825.17 crore on the exchequer, AP government is not in a position to pay normal salaries as it is left with a cash reserve of mere Rs 1,200 crore.Sources said the government had adopted the ‘ways and means’, a method to borrow interest-free loan from the RBI, to pay for the January month’s salary. The sources also said that plummeting revenues are in no way matching the overshooting expenses. The government is planning to avail overdraft (OD) from the RBI which comes with a heavy burden of interest.While the government maintains that it is impossible to consider the demand of a major pay hike, the employees are not buying the argument. Muralikrishna disputed the quantum of the estimated additional burden and said it would not cross Rs 5,500 crore. P Ashok Babu, chairman of AP Non-Gazetted Officers’ Association (APNGO) put the onus on the government. “It is not our concern to worry about the state finances. It is like we are going to an ATM to draw money. We never think of what is happening inside,” said Ashok Babu.While he exuded confidence that the cabinet sub-committee on Monday would take a favourable decision, Ashok Babu said the APNGO would decide on the course of action if the government turns down the demand. “We will consult all the employees’ associations and chalk out a plan,” he added.On his part, Ramakrishnudu admitted that the financial condition was critical and said the cabinet sub-committee would discuss all the aspects of the issue. “I will be in a position to give details only after the sub-committee meeting and a consultation with the chief minster thereafter,” he said.The other demands include increasing minimum pay from Rs 13,000 to Rs 15,000 and maximum pay from Rs 1,10,850 to Rs 1,37,600, regularisation of services of contract employees and full time contingent workers, and increasing maximum increment from 2.33 per cent to 2.83 per cent. They also sought a hike in gratuity to Rs 15 lakh from Rs 12 lakh.