Andhra Pradesh Chief Minister Chandrababu Naidu has reportedly made it quite clear that he wants the AP administration based in Hyderabad to function from Amaravati with effect from June 1,2016.
This move will in a way ensure that about 26000 employees along with their families shift their base soon to Amaravati which is expected to happen in the next few months. This move will cause the state to face a little burden for creating extra office spaces and also for providing temporary accommodation to the employees.
But this move is expected to benefit the state significantly in the long run. The staff numbering 26000 and their families are salaried class who would be having good purchase abilities.
Their shift to Amaravati results in a scenario where they would start spending more money which will add more taxes and VAT to the state including the professional tax they pay. The state government is therefore focused on long term benefits compared to the temporary burden faced in accommodating them.
