Andhra Pradesh has set an ambitious own-revenue target of ₹1,27,506 crore for the financial year 2026-27, as Chief Minister N. Chandrababu Naidu on Thursday directed all revenue-earning departments to plug leakages, adopt technology, and aggressively recover pending central funds. The directive came during a high-level review of key revenue departments held at the Secretariat in Amaravati.

Revenue Growth So Far

State Own Revenue rose from ₹1,04,345 crore in 2024-25 to ₹1,10,643 crore in 2025-26, registering a 6 per cent increase, according to officials who briefed the Chief Minister. Major contributors included ₹33,679 crore from the Goods and Services Tax (GST), ₹10,300 crore from the Mines Department, and ₹11,047 crore from the Stamps and Registration Department.

Naidu noted that the state had already recorded nearly 38 per cent revenue growth in the first 42 days of the current financial year — a figure he cited as evidence that the new target is achievable if momentum holds.

Key Directives from the Chief Minister

Naidu stressed that every department — including Commercial Taxes, Excise, Mines, Transport, and Registration — must operate at full capacity. 'As investments increase, tax revenues must rise proportionately,' he said, according to an official release.

He called for faster vehicle registrations within 24 hours, rationalisation of municipal taxes, and resolving land disputes — particularly those related to Section 22A properties — which he said could significantly boost registration revenues. He also emphasised the need to add value to minerals and red sanders exports to improve earnings from the sector.

Technology and AI at the Centre of the Push

The Chief Minister directed departments to implement Artificial Intelligence (AI)-driven GST scrutiny systems and strengthen data analytics to identify tax leakages and improve compliance — without, he specified, harassing taxpayers. He also called for wider use of Geographic Information System (GIS) mapping, drone surveys, and satellite imagery to detect unauthorised constructions and sharpen property tax assessments.

Naidu urged departments to adopt innovative systems and improve the 'Speed of Doing Business', framing technology adoption not just as an efficiency tool but as a structural fix for revenue underperformance.

Districts as Growth Engines

Calling districts 'growth centres', Naidu argued that economic expansion at the district level would accelerate statewide revenue achievement. He asked officials to create taxpayer awareness campaigns highlighting the benefits of timely tax payments and to ensure transparency in collections.

The review was attended by senior officials from the Finance, Transport, Excise, Mines, Commercial Taxes, Forest, Municipal Administration, and Registration departments, along with Chief Secretary Sai Prasad. With the ₹1.27 lakh crore target now formally set, the coming months will test whether Andhra Pradesh's investment pipeline translates into the tax buoyancy Naidu is counting on.