In a high-level review meeting at the Secretariat on Tuesday, Chief Minister N. Chandrababu Naidu directed revenue departments to adopt cutting-edge technology, including artificial intelligence (AI), to improve the state’s financial performance and exceed revenue targets for 2025–26.
Stressing the need for data-driven governance, Naidu instructed officials to analyze 30 years of historical data to formulate actionable plans for boosting state revenue. He emphasized that every department must establish a dedicated AI team, and a comprehensive AI-powered tax system should be implemented within the next three months to enhance taxpayer services and compliance.
“We are among the top gold-consuming states in the country, yet our tax collections don’t reflect this. We must ask why,” Naidu remarked, calling for comparative analysis with neighboring states like Karnataka and Tamil Nadu, which have shown stronger revenue performance in sectors like transportation.
Real-Time Monitoring and Revenue Reforms
Naidu also called for real-time tracking of liquor distribution, from supply chains to retail sales, to curb smuggling from neighboring states and enhance transparency. He urged departments to aim beyond monthly targets and reduce reliance on central assistance and loans, which he described as stopgap measures.
He pointed out that departments that underperformed in the past year must accelerate reforms. He also highlighted red sandalwood—a valuable natural resource exclusive to the state—as a major untapped asset. Naidu ordered the formation of a committee to assess stockpiles, estimate market value, and explore opportunities to monetize red sandalwood through international sales.
Revenue Targets for FY 2025–26
Revenue officials informed the Chief Minister that Andhra Pradesh is targeting ₹1.34 lakh crore in state-generated income for FY 2025–26—a 29% increase over the previous year. This includes revenue from commercial taxes, excise, stamps and registration, mining, and forest departments.
However, they acknowledged mixed results so far. Between April 1 and May 11, revenue from commercial taxes and forests declined, while stamps and registration saw an uptick. Only ₹12,717 crore has been received from the Centre during this period—a 29% drop compared to ₹17,170 crore during the same span last fiscal.
Excise Revenue Sees Moderate Growth
The newly implemented excise policy has shown early signs of success. Officials reported that Andhra Pradesh collected ₹2,116 crore in excise revenue last month alone. For FY 2024–25, the state earned ₹28,842 crore, marking a 14.84% increase from the previous year. Projections for the current year stand at ₹33,882 crore.
Despite this growth, the Chief Minister noted that Andhra Pradesh still lags behind Telangana, Tamil Nadu, and Karnataka in overall excise income and directed departments to identify ways to close this gap.
