CM Calls for In-Depth Analysis for a substantial increase in the State’s Income
CM Calls for In-Depth Analysis for a substantial increase in the State’s Income •Formulate Plans Based on 30 Years of Outcomes •Revenue Target for This Year Set at ₹1,34,208 Crore •Technology to Curb Tax Evasion •Committee to Be Formed for International Sale of Red Sandalwood •CM Chandrababu Naidu Reviews Revenue-Generating Departments • Amaravati, May 13, 2025: Chief Minister N. Chandrababu Naidu directed all revenue-generating departments to conduct an in-depth study of the favorable conditions and opportunities available to significantly increase the state’s income. He underlined that detailed planning should be based on the revenue trends of the past 30 years to ensure substantial growth. He noted that the Electronics, IT, and Services sectors would play a crucial role in boosting the state’s revenue. On Tuesday, the Chief Minister held a comprehensive review meeting with all revenue-generating departments at the Secretariat. Department-wise progress was discussed. He expressed concern that although Andhra Pradesh ranks among the top states in gold consumption, the corresponding tax revenues are 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. Tracking Liquor Supply and Sales: The CM instructed 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 remains lower than that of neighbouring Karnataka and Tamil Nadu, he called for an immediate investigation and corrective policy measures. He stressed that revenue departments must strive to exceed monthly targets. Comprehensive Study on Red Sandalwood Stocks: The Chief Minister suggested forming a committee to facilitate the international sale of red sandalwood stocks in the state. Noting that Andhra Pradesh is uniquely home to red sandalwood worth thousands of crores of rupees, he said monetizing these reserves could bring in substantial income. He asked for a detailed report on the volume and value of red sandalwood stocks available. 29% Increase in Revenue Target: The revenue target for the financial year 2025–26 from various sources—commercial taxes, excise, stamps & registration, mines, forests, etc.—has been set at ₹1,34,208 Cr, reflecting a 29% increase over the previous year. From April 1 to May 11 this financial year, revenue from commercial taxes and forests saw a decline, whereas income from the stamps & registration department surged unexpectedly. Meanwhile, central government transfers to the state dropped by 26% during this period compared to last year. While Andhra Pradesh received ₹17,170 Cr from the Centre during this period in 2024–25, only ₹12,717 Cr was received this year, officials noted. Increased Revenue Through New Excise Policy: The new excise policy has led to increased revenue in 2024–25, with the state earning ₹28,842 Cr—a 14.84% 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 ₹2,116 crore in excise revenue. Officials estimate that total excise income for the year could reach ₹33,882 crore. Need to Offset Hyderabad’s Absence: CM Chandrababu 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 officials to strictly implement the policies introduced over the past year to improve the state’s financial position. He reiterated the need for the state to become self-reliant by strengthening its revenue sources. Only then, he said, can the state allocate adequate funds for development and welfare schemes. He added that central assistance and loans are only meant for initial support, and sustainable growth must be achieved through improved departmental performance. He noted that a few departments have not met their expected progress in the past year and emphasized the need for improved performance across the board.