Can Andhra Pradesh Achieve 29% Revenue Growth This Fiscal Year?

Amaravati, May 13 (NationPress) Andhra Pradesh has established a target for a remarkable 29% revenue growth during the ongoing fiscal year, as Chief Minister Nara Chandrababu Naidu instructed all departments to implement measures to enhance the state’s earnings.

For the fiscal year 2025-26, a revenue target of Rs 1,34,208 crore has been outlined across various sectors, including Commercial Taxes, Excise, Stamps and Registration, Mines, and Forests, marking a 29% increase compared to the prior year.

During a review session at the State Secretariat with officials from all revenue-generating departments, the Chief Minister noted a decline in revenue from Commercial Taxes and Forests between April 1 and May 11 of the current fiscal year, whereas revenue from Stamps and Registrations has surged significantly.

The state has also seen a 26% decline in revenue from the Centre up to May 11 this fiscal year. Last year at this time, the revenue from the Centre was Rs 17,170 crore, while this year it stands at only Rs 12,717 crore, according to officials.

Revenue has seen an uptick due to the new excise policy, with earnings in 2024-25 reaching Rs 28,842 crore, a growth of 14.84% from the previous year. However, when compared to southern states like Telangana, Tamil Nadu, and Karnataka, Andhra Pradesh's excise revenue remains lower. Officials anticipate the excise revenue this year could climb to Rs 33,882 crore.

The Chief Minister has mandated officials to adopt stringent measures against liquor smuggling from neighboring states while ensuring transparency in liquor sales. He emphasized the need for thorough tracking from supply to retail sales using Real Time data.

Notably, Hyderabad contributes 75% of the total revenue for Telangana, prompting the Chief Minister to encourage officials to find innovative ways to bolster state revenue, as Andhra Pradesh lacks a similar urban center. He urged the strict enforcement of all policies instituted this year to enhance revenue.

He directed officials to conduct comprehensive studies to identify opportunities for increasing revenue and to ensure maximum growth.

Furthermore, he advised officials to formulate plans based on the revenue earned over the past three decades, asserting that sectors such as Electronics, Information Technology, and Services could significantly contribute to income growth.

While recognizing that Andhra Pradesh leads other states in gold purchases, the Chief Minister expressed concern over the disparity between gold purchases and tax revenue, insisting on measures to prevent tax evasion.

He proposed establishing a data lake integrating information from all departments, suggesting each should have an Artificial Intelligence (AI) team. An AI-driven tax system is to be implemented within the next two to three months to enhance taxpayer services.

Additionally, the Chief Minister inquired about the low revenue from the Transport Department as receipts in states like Karnataka and Tamil Nadu continue to rise. Immediate exploration of this issue and appropriate policy implementations are necessary.

Officials were also encouraged to form a committee to explore the possibilities of selling red sanders on the global market, as these valuable resources belong solely to Andhra Pradesh. The committee should report on the current stock and total value of red sanders in the state.