Andhra CM sets over Rs 1.34 lakh cr income target for revenue-generating departments

Andhra Pradesh Chief Minister N Chandrababu Naidu on Tuesday directed all revenue-generating departments to explore possibilities for raising the state's income, setting a target of over Rs 1.34 lakh crore for FY26, a 29 per cent increase from the previous fiscal.

Naidu instructed the departments to carry out an in-depth study of favourable conditions and opportunities to boost revenue, according to an official press release.

Departments such as Commercial Taxes, Excise, Stamps and Registration, Mines, Forests, and others are expected to play a key role in this effort.

"Naidu directed all revenue-generating departments to conduct an in-depth study of the favourable conditions and opportunities available to significantly increase the state’s income," the press release stated.

He emphasised that detailed planning should be based on revenue trends from the past 30 years to ensure substantial growth, noting that the electronics, IT, and services sectors would play a crucial role in increasing the state’s revenue.

From April 1 to May 11 of this financial year, revenue from commercial taxes and forests declined, whereas income from the Stamps and Registration department surged unexpectedly, the press release added.

The central government transfers to the state dropped by 26 per cent during this period compared to last year. Andhra Pradesh received Rs 17,170 crore from the Centre during this period in 2024–25, compared to Rs 12,717 crore received so far this year, officials informed Naidu.

Incidentally, the new excise policy helped boost revenue during FY25, with the state earning Rs 28,842 crore—a 15 per cent increase over FY24.

However, compared to southern states like Telangana, Tamil Nadu, and Karnataka, Andhra Pradesh’s excise revenue remains relatively low, the release stated.

In April 2025, 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.

During a review meeting with all revenue-generating departments at the Secretariat, the TDP supremo pointed out that although the state is a major buyer of gold, the corresponding tax revenue does not reflect this proportionately.

Instructing officials to address the issue, the CM called for stringent measures to curb tax evasion.

Emphasising the need to create a data lake to integrate information from all departments, he said, "Each department should have its own Artificial Intelligence (AI) team and an AI-driven tax system within two to three months to provide better services to taxpayers."

Naidu also directed officials to take stringent measures to prevent the illegal sale of liquor from neighbouring states.

He insisted that the entire supply chain—from distribution 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 (Naidu) called for an immediate investigation and corrective policy measures.

He stressed that revenue departments must strive to exceed monthly targets, the press release added.

Naidu also called for the creation of a committee to facilitate the international sale of red sandalwood stocks in the state.

Highlighting that Andhra Pradesh is uniquely home to red sandalwood worth thousands of crores, he said monetising these reserves could bring in substantial income.

He asked for a detailed report on the volume and value of the available red sandalwood stocks.

Moreover, Naidu said Andhra Pradesh must compensate for the loss of Hyderabad, which contributes 75 per cent of Telangana’s total revenue.

Hyderabad was the capital of united Andhra Pradesh for several decades until the bifurcation of the state into Telangana and residual Andhra Pradesh.

Therefore, Naidu stressed the importance of exploring new avenues to enhance revenue and urged officials to strictly implement the policies introduced over the past year to improve the state’s financial position.