AP Admin shift to prove costly for Telangana

Andhra Pradesh government had set a muhurtham to shift its employees from Hyderabad to Amaravati starting June 27th. However this decision of the neighbouring state will have some financial implications on the Telangana government. AP government pays about 1200 Crore to employees in Hyderabad towards salaries.

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The money will be sent mostly in Hyderabad and it adds to the GSDP here. In fact, shifting of AP Pay and Accounts office alone will result in the GHMC losing Rs 4 crore professional tax per year. So, Telangana will not be totally happy as AP is shifting its administration well in advance even though it has time till 2024.

Over 11000 AP staff in Hyderabad spent most of their salaries in the city bringing huge revenue for the state in terms of Taxes. However. AP which already suffered revenue deficit and it cannot afford to lose its own revenues to Telangana at this stage and any delay will only benefit TS.