Chief Minister Chandrababu Naidu has directed officials to bolster the state’s revenue-generating departments to enhance self-sustained income, emphasising that true growth hinges on increasing the state’s own revenue sources.
During a review meeting with officials from revenue departments at the Secretariat on Wednesday, he stressed the need to boost tax collections and explore additional income avenues while identifying and addressing reasons for revenue shortfalls.
Naidu advocated for a fully online system for tax payments, receipt issuance, and notices to streamline processes. He underscored the use of Artificial Intelligence (AI) to curb tax evasion, citing an example where AI identified over 1,000 builders who failed to register despite obtaining occupancy certificates from the Municipal Department. He instructed that government approvals should only be granted to those registered under GST, ensuring compliance.
The Chief Minister urged all revenue departments to adopt AI-driven methods to detect tax evaders and enforce rigorous tax collection. He emphasized that leveraging technology would simplify tax payments and permissions for businesses, clarifying that the coalition government’s approach is not to harass traders—as seen in the previous administration—but to collaborate with them to ensure compliance with regulations.
Naidu proposed integrating data from taxpayers, the GST portal, the AP State Data Centre, and APCTD using the AI model to enhance efficiency.
Excise revenue rises to Rs 4.3k crore in six months
He also suggested employing AI for issuing notices and addressing grievances to accelerate government operations. He set a target for all departments to achieve 100% of the State’s own revenue goal of Rs 1,37,412 crore for the current fiscal year.
Comparing the 2023-24 fiscal year with 2024-25, the state’s revenue has grown by 2.2%. Tax revenue saw a 4.1% increase, with GST rising by 4.9%, professional tax by 15.2%, and excise revenue by an impressive 24.3%. However, non-tax revenue has not met expectations.
The new excise policy has proven successful, generating Rs 4,330 crore between October 2024 and March 2025, marking a 33% increase in excise income. Similarly, the Municipal Department recorded over Rs 500 crore in additional revenue in 2024-25 compared to the previous year.
Despite these gains, approximately Rs 2,500 crore in tax arrears remain outstanding, primarily linked to properties owned by Union and State governments and vacant lands. A 50% interest waiver announced in March led to Rs 240 crore in property tax collections within just six days, officials reported.
