VIJAYAWADA: Observing that the growth in the State revenue is possible with deep analysis, Chief Minister N Chandrababu Naidu has directed officials to prepare plans based on the revenue trends of the past 30 years to ensure substantial development. Naidu set a revenue target of Rs 1,34,208 crore for the current financial year. He felt that tax evasion will be possible with the usage of technology.
During a review with the officials of revenue generating departments at the State Secretariat on Tuesday, he underscored the need for an in depth study on the opportunities to enhance the State revenue.
He noted that the electronics, IT and services sectors will play a crucial role in boosting the State’s revenue. He expressed concern that though Andhra Pradesh ranks among the top States in gold consumption, the corresponding tax revenue is not proportionate. He instructed the officials to address this and implement strict measures to prevent tax evasion.
Naidu also emphasised the need to create a central Data Lake, integrating information from all the departments. Each department should have its own AI team, and an AI-driven tax system should be operational within the next two to three months to provide better services to taxpayers, he said.
He instructed the officials to take stringent measures to prevent illegal liquor sales from neighbouring States. The entire process from supply to retail should be tracked in real-time to ensure transparency.
Questioning why Andhra Pradesh’s transport revenue remains lower than that of neighbouring Karnataka and Tamil Nadu, he called for an immediate investigation and corrective policy measures. All the departments should strive to exceed monthly targets, he said.
The Chief Minister suggested forming a committee to facilitate the international sale of red sanders stocks in the State. Noting that Andhra Pradesh is home to the unique red sanders species worth thousands of crores, he said monetising the wood reserves could bring in substantial income to the State. He asked for a report on the volume and value of red sanders stocks available in AP.
From April 1 to May 11, revenue from commercial taxes and forests saw a decline, whereas income from the stamps and registration department surged unexpectedly. Meanwhile, the Central government transfers to the State dropped by 26% during this period compared to last year.
While AP received Rs 17,170 crore from the Centre during this period in 2024-25, only Rs 12,717 crore was received this year, the officials explained.
The new excise policy has led to increased revenue in 2024-25, with the State earning Rs 28,842 crore, a 14.84% rise over the previous year. However, when compared to Telangana, Tamil Nadu and Karnataka, Andhra Pradesh’s excise revenue remains relatively low.
In April 2025 alone, the State had earned Rs 2,116 crore excise revenue. According to an estimate, the total excise income for the year may reach Rs 33,882 crore, they highlighted.
Naidu pointed out that 75% of Telangana’s revenue comes from Hyderabad, a privilege Andhra Pradesh does not have. Hence, he stressed the importance of exploring new avenues to enhance revenue. He urged the officials to strictly implement the policies introduced over the past year to improve the State’s financial position.