Andhra Pradesh Chief Minister N Chandrababu Naidu Sets Rs 1.34 Lakh Crore Revenue Target for FY26

Andhra Pradesh Chief Minister N Chandrababu Naidu has instructed revenue-generating departments to explore ways to boost the state's income. A target of over Rs 1.34 lakh crore for FY26 has been set, marking a 29% increase from the previous fiscal year. Departments like Commercial Taxes, Excise, and Stamps and Registration are expected to play significant roles in achieving this goal.

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Naidu emphasised the importance of analysing revenue trends from the past 30 years to ensure substantial growth. He highlighted that sectors such as electronics, IT, and services would be crucial in increasing the state's revenue. The Chief Minister also directed departments to conduct thorough studies on favourable conditions and opportunities available for revenue enhancement.

Revenue Trends and Challenges

From April 1 to May 11 this financial year, revenue from commercial taxes and forests saw a decline. However, income from the Stamps and Registration department increased unexpectedly. During this period, central government transfers to Andhra Pradesh dropped by 26% compared to last year, with the state receiving Rs 12,717 crore so far in 2024–25.

The new excise policy contributed positively to revenue in FY25, with earnings reaching Rs 28,842 crore—a 15% rise over FY24. Despite this growth, Andhra Pradesh's excise revenue remains lower than that of neighbouring states like Telangana, Tamil Nadu, and Karnataka. In April 2025 alone, the state earned Rs 2,116 crore in excise revenue.

Addressing Revenue Discrepancies

During a review meeting at the Secretariat, Naidu noted that although Andhra Pradesh is a major gold buyer, tax revenue does not reflect this adequately. He urged officials to tackle tax evasion and emphasised creating a data lake for integrating departmental information. Each department should establish its own AI team and an AI-driven tax system within two to three months.

Naidu also called for measures to prevent illegal liquor sales from neighbouring states. He insisted on tracking the entire supply chain—from distribution to retail—in real time for transparency. Additionally, he questioned why Andhra Pradesh's transport revenue lags behind Karnataka and Tamil Nadu's and demanded an investigation into this issue.

Exploring New Revenue Avenues

The Chief Minister proposed forming a committee to facilitate international sales of red sandalwood stocks in Andhra Pradesh. The state is uniquely home to red sandalwood worth thousands of crores. Monetising these reserves could significantly boost income. Naidu requested a detailed report on the volume and value of available red sandalwood stocks.

Furthermore, Naidu stressed compensating for Hyderabad's loss, which contributes 75% of Telangana's total revenue. Hyderabad was Andhra Pradesh's capital before the state's bifurcation into Telangana and residual Andhra Pradesh. Therefore, exploring new avenues for enhancing revenue is crucial.

Naidu urged officials to strictly implement policies introduced over the past year to improve Andhra Pradesh's financial position. He also emphasised that revenue departments must strive to exceed monthly targets to achieve the set goals.

With inputs from PTI