Governor Arnold Schwarzenegger of California has shifted to close a financial recession by firing nearly 22,000 state employees and ordering pay cuts for almost 200,000.

The entirely dense state in the United States faces a monetary deficit of above than $15bn (£7.6bn), and lawyers are combating to accept the consumption plan.
The cuts, which would protect $100m a month, are formulated to put stress upon politicians to close the budget concerns.

However, the main officials in the state challenged the verdict to cut the pay.

California does have one of the largest economies nowadays and it has no way to pay contractors for a number of the services it offers.

Almost 30 American states undergo with budget crisis caused by increasing costs and decreasing incomes in a declining economy but California’s is without a doubt the largest.

Mr. Schwarzenegger, the ex Hollywood film star moved to Republican politician, said in a statement, “He had signed a managerial order on the employees and pay cuts”.

“Today I am running my executive authority to avoid of more economic-turmoil and keep our state moving ahead”. Schwarzenegger said.

“It is not the action rather I take lightly but we don’t have a monetary boom and as governor, I have a responsibility to certify our state has a lot of finance to pay its bills.”

California’s state financial controller, John Chiang, a Democrat, has showed not to impose on the pay cuts, saying to do so could lead us to take some legal actions.

He sent a letter to Mr. Schwarzenegger on Thursday and said, “He would challenge the order and launch staff their monthly salaries”.

Regarding the governor’s executive order, he said in a statement, “This was based upon forged legal and authenticated assurances”.

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