Ludhiana, June 11 -- Shiromani Akali Dal (SAD) president Sukhbir Singh Badal on Tuesday alleged that all development work has ground to a halt in Punjab after the Aam Aadmi Party (AAP) government in the state directed all departments to deposit funds lying with them into the state treasury.

Terming the decision to recall funds as unprecedented, the SAD president said: "Since the AAP government has over-extended itself and does not have funds to manage borrowings, it has called back funds released to 12 departments. This effectively means that the government will be using funds meant for development as well as various government schemes to pay its loans".

In the orders issued by principal secretary finance Krishan Kumar, the state govern...