Andhra Pradesh government is firm on shifting all its employees from Hyderabad to Amaravati by 27th of June. It is estimated that about 21000 employees will be shifted out of Hyderabad in this drive. This shift will have financial implications on Telangana as well, as these people who are big spenders will no longer spend their money here.
From Professional Tax to VAT on various products and services, Telangana government will have to lose big income due to these employees going to Amaravati. Telangana government reportedly already started analysis to estimate the extent of loss and how it needs to be covered.
Few government sources opine that most of the employees will leave their families behind in Hyderabad and will comeback here for weekend, and so the effect of administration shift may not be big or immediate. However they say the effect can be guazed only by the end of this financial year to arrive at actuals.
