Vijayawada: Chief Minister N Chandrababu Naidu on Tuesday directed all revenue-generating departments to conduct an in-depth study on opportunities available to significantly increase state’s income.
The state government has set an ambitious target of Rs 1,34,208 crore in total revenues for the financial year 2025-26, representing a year-on-year growth of 29 per cent.
Addressing a review meeting with all revenue-generating departments at the Secretariat on Tuesday, the CM expressed concern that although Andhra Pradesh ranked among the top states in gold consumption, the corresponding tax revenues were not proportionate. He instructed officials to address this and implement strict measures to prevent tax evasion.
The Chief Minister also emphasised the need to create a central Data Lake, integrating information from all 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.
Naidu instructed the officials to take stringent measures to prevent illegal liquor sales from neighbouring states. He directed that the entire process – from supply to retail – should be tracked in real-time to ensure transparency.
Questioning why Andhra Pradesh’s transport revenue remained lower than that of neighbouring Karnataka and Tamil Nadu, he called for an immediate investigation and corrective policy measures. He stressed that revenue-generating departments must strive to exceed monthly targets.
He suggested forming a committee to facilitate the international sale of red sanders stocks in the state. Noting that Andhra Pradesh is home to red sanders worth thousands of crores of rupees, he said monetising these reserves could bring in substantial income. He asked for a detailed report on the volume and value of red sanders stocks available.
Though the state government has set ambitious revenue targets, the performance has been a mixed bag so far this financial year. From April 1 to May 11 this financial year, revenue from Commercial Taxes and Forest departments saw a decline, whereas income from the Stamps & Registrations department surged unexpectedly when compared to the same period last financial year. Meanwhile, transfers from the Central government to the state dropped by 26 per cent during this period compared to last year. While Andhra Pradesh received Rs17,170 crore from the Centre during this period in 2024–25, only Rs 12,717 Cr was received this year, officials noted.
The new Excise Policy has led to increased revenue in 2024–25, with the state earning Rs 28,842 crore from liquor sales, a 14.84 per cent rise over the previous year. However, when compared to southern states like 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.
The CM noted that a few departments have not met their expected progress in the past year and emphasised the need for improved performance across the board.
