India, Feb. 7 -- Government contractors' indefinite stop-work stance in protest of unpaid dues amounting to over Rs.90,000 crore, in the current financial year, has exposed the state's depleted treasury; and it is believed that the situation is set to become bleaker, with officials in the government stating that the budgeted expenditure is likely to drop further by 5-10%.

The treasury is in a bind, they say, thanks to populist schemes such as the Ladki Bahin Yojana ( Rs.33,500 crore), floated before the Assembly election last year, and other unbudgeted spends, such as Rs.25,000 crore spent on Annapurna yojana, through which over 10 lakh households receive three free cooking gas cylinders each year. Other doles include stipend for the une...