PNS|Vijayawada
Chief Minister N. Chandrababu Naidu has directed all revenue-generating departments to undertake a detailed study of favourable conditions and opportunities to significantly enhance the State’s income. He stressed that thorough planning should be grounded in the revenue trends of the past 30 years to ensure sustainable growth. He highlighted the crucial role that the Electronics, IT, and Services sectors would play in boosting revenue.
On Tuesday, the Chief Minister held a comprehensive review meeting with all revenue-generating departments at the Secretariat. Expressing concern, he noted that although Andhra Pradesh ranks among the top states in gold consumption, the corresponding tax revenues do not reflect this. He instructed officials to address the gap and implement strict measures to curb tax evasion.
The Chief Minister also underscored the need to establish a centralised Data Lake by integrating information from all departments. He directed that each department should have its own AI team, and that an AI-driven tax system should be made operational within the next two to three months to improve services to taxpayers.
He further instructed officials to take stringent steps to prevent the illegal sale of liquor from neighbouring states. The entire process—from supply to retail—must be tracked in real-time to ensure transparency.
Questioning why Andhra Pradesh’s transport revenue lags behind that of neighbouring Karnataka and Tamil Nadu, he called for an immediate investigation and the formulation of corrective policy measures.
The Chief Minister suggested the formation of a committee to facilitate the international sale of red sanders stocks. He pointed out that Andhra Pradesh is uniquely endowed with red sanders valued at thousands of crores of rupees and said that monetising these reserves could generate substantial income.
The revenue target for the financial year 2025–26 from various sources—commercial taxes, excise, stamps and registration, mines, forests, and others—has been set at Rs 1,34,208 crore, marking a 29% increase over the previous year.
Between 1 April and 11 May of this financial year, revenue from commercial taxes and forests declined, while income from the stamps and registration department saw an unexpected surge. Meanwhile, central government transfers to the State dropped by 26% during this period compared to the previous year. Andhra Pradesh received Rs 17,170 crore from the Centre during this period in 2024–25, but only Rs 12,717 crore this year, officials reported.
The new excise policy led to increased revenue in 2024–25, with the State earning Rs 28,842 crore—an increase of 14.84% over the previous year. However, when compared with southern states such as Telangana, Tamil Nadu, and Karnataka, Andhra Pradesh’s excise revenue remains relatively low. In April 2025 alone, the State earned Rs 2,116 crore in excise revenue. Officials estimate that total excise income for the year could reach Rs 33,882 crore.
Mr Naidu observed that 75% of Telangana’s revenue comes from Hyderabad—a privilege Andhra Pradesh does not enjoy. Hence, he stressed the importance of exploring new avenues for revenue generation. He urged officials to strictly implement the policies introduced over the past year to strengthen the State’s financial position.
Reiterating the need for self-reliance, the Chief Minister emphasised that strengthening internal revenue sources is vital. Only then, he said, can the State allocate sufficient funds for development and welfare schemes. Central assistance and loans, he added, should be viewed as initial support, while sustained growth must come from improved departmental performance.
