Andhra Pradesh, which is awaiting the formation of a new Cabinet almost, a week after the Chief Minister Y S Rajashekhar Reddy was sworn in, is in the grip of a precarious financial position. The new Government which has already announced sops worth about Rs 1,600 crore for the rural sector in the shape of free electricity to the farmers and package of assistance to the families affected by the suicide by farmers, says that state finances are in a shambles.