Metro India News | AMARAVATI

In a high-level review with revenue-generating departments, Andhra Pradesh Chief Minister N. Chandrababu Naidu on Tuesday called for in-depth analysis and data-driven strategies to significantly boost the state’s own revenue. Stressing the need for long-term planning based on insights from the past three decades, Naidu urged officials to explore growth opportunities through emerging sectors such as electronics, IT, and services.

Setting a revenue target of Rs.1,34,208 crore for the fiscal year 2025-26—a 29% increase over the previous year—the Chief Minister emphasized leveraging technology to curb tax evasion and modernize the tax administration system with AI-based solutions.

Chandrababu Naidu directed departments to establish a comprehensive data lake by integrating information from all revenue departments. He proposed deploying dedicated AI teams for each department and implementing an AI-powered tax system within the next two to three months to improve taxpayer services and compliance monitoring.

Naidu issued strict orders to prevent illegal liquor smuggling from neighboring states. He emphasized the need for end-to-end real-time tracking of liquor—from supply to sale—to ensure transparent operations. Highlighting the disparity in transport department revenues compared to states like Karnataka and Tamil Nadu, he called for immediate corrective policies to maximize income potential.

Thanks to a newly implemented excise policy, the state earned Rs.28,842 crore from excise in 2024-25—up by 14.84% compared to the previous year. However, Andhra Pradesh still trails behind its southern counterparts in excise collections. For FY 2025-26, the state anticipates Rs.33,882 crore in excise revenue, with Rs.2,116 crore already earned in April.

Officials reported a 26% decline in central fund inflows compared to the same period last year. While Rs.17,170 crore was received from the Centre in early FY 2024-25, the figure dropped to Rs.12,717 crore this year. Simultaneously, while commercial tax and forest revenue saw declines, the stamps and registration department reported an unexpected increase in collections.

Acknowledging that Andhra Pradesh does not benefit from a metropolitan hub like Hyderabad—which accounts for 75% of Telangana’s revenue—Naidu emphasized the urgency of identifying alternative growth avenues. He stressed that the state must become self-reliant in revenue generation to effectively fund welfare programs and developmental projects.

The Chief Minister candidly noted that a few departments had not achieved expected progress over the past year and urged them to improve their performance.