While the situation has affected release of payments of the treasury bills. Finance Department officials said that there was nothing unusual about the decision to put off payment of bills for two or three days. ``In March, the Department is usually flooded with requests to release payments. The decision to temporarily put on hold bills is for better management of resources,'' they said. Last month, the Finance Department had issued instructions, temporarily putting off clearance of treasury bills of more than Rs five lakh.

When asked, state Chief Secretary R.S. Varma said the state government was facing a tight financial situation on account of implementation of the recommendations of the Fifth Pay Commission. ``But we are not the only state in such a situation. In fact, we are better off than many other states. The Centre is also aware of the matter and has called a meeting of the Chief Ministers to discuss the situation,''he added.