During the meeting, officials from the Commercial Taxes Department briefed the CM on tax revenue collections and measures to prevent tax evasion

metro india news  I amaravati

Andhra Pradesh Chief Minister N. Chandrababu Naidu has directed state revenue-generating departments to adopt innovative and technology-driven approaches to enhance government revenues. Addressing a high-level review meeting at the State Secretariat on Tuesday, the CM emphasized that rebuilding the state’s economy requires efficient financial management and revenue optimization.

The Chief Minister noted that Andhra Pradesh, which suffered financial distress under the previous YSRCP government, must now regain its economic stability and accelerate development. He urged officials to go beyond routine administrative targets and focus on transformative revenue strategies to increase state earnings without imposing additional burdens on citizens.

During the meeting, officials from the Commercial Taxes Department briefed the CM on tax revenue collections and measures to prevent tax evasion. Naidu stressed that strict action must be taken against tax evaders, while also cautioning against unnecessary harassment of traders. He underscored the need for a balanced approach that ensures compliance without disrupting business activities.

The Chief Minister further instructed officials to leverage technology to streamline revenue collection, identify gaps in tax compliance, and enhance transparency in financial transactions. Naidu reiterated that financial resources are crucial for the successful implementation of welfare programs and development projects. He urged revenue departments to demonstrate daily progress in revenue generation.

Highlighting the state's economic challenges, the CM pointed out that previous government policies led to a decline in living standards, and the state cannot afford to overburden citizens with additional taxes. Instead, he stressed the importance of maximizing revenue through improved efficiency and effective policy execution.

Naidu also briefed officials on his ongoing negotiations with the central government to secure financial assistance. He revealed that he had a one-hour-and-forty-five-minute discussion with Arvind Panagariya, the Chairman of the 16th Finance Commission, to explain Andhra Pradesh’s financial situation and advocate for increased central funding.

The state revenue forecast for 2024-25 was presented during the meeting, with officials providing a detailed breakdown of key revenue streams.

Commercial Taxes: 

In 2023-24, the state collected Rs.41,420 crore in commercial taxes. So far in 2024, Rs.41,382 crore has been collected, with additional growth expected in February and March.

Excise Revenue: 

Due to the new excise policy, revenue from this sector is projected to increase compared to the previous year.

Mining Sector: 

The CM expressed concern that mining revenue has not grown as expected and instructed officials to expedite the resolution of legal disputes and streamline approvals to maximize earnings from the state's mineral resources.

GST, VAT, Excise, and Professional Taxes: 

Officials estimated a moderate increase in collections across these sectors, contributing to an overall state revenue projection of Rs.1,02,154 crore for 2024-25. Naidu made it clear that he will personally oversee revenue performance through regular reviews, urging officials to strengthen their departments and deliver tangible results. The review meeting was attended by Finance Minister Payyavula Keshav and senior officials from various revenue departments.