Published Feb 10, 2026 | 4:26 PM ⚊ Updated Feb 10, 2026 | 4:26 PM
Andhra Pradesh Chief Minister N Chandrababu Naidu.
Synopsis: Andhra Pradesh government is targeting ₹1.34 lakh crore in state own revenue for 2025‑26, a 29% jump. Finance Secretary V. Vinay Chand outlined improved tax collections, monetising red sanders, and unlocking idle PD accounts. By January, ₹83,500 crore was collected. CM Chandrababu Naidu urged faster fund utilisation, systemic reforms, and transparent auctions to boost fiscal health.
The Andhra Pradesh government is intensifying efforts to strengthen its fiscal position by aggressively targeting higher state own revenue (SOR) in the current financial year 2025-26.
Finance Secretary V Vinay Chand, in his presentation to Chief Minister N Chandrababu Naidu on 9 February, said the target was Rs 1,34,208 crore for SOR — marking a ambitious 29 percent growth compared to the previous year.
This drive combines improved tax collections, non-tax revenue streams, and innovative measures such as monetising red sanders reserves, utilising unspent central funds, and unlocking idle money in Personal Deposit (PD) accounts.
As of January 2026, the state has collected ₹83,500 crore, achieving 62 percent of the annual target. This represents a steady 5 percent year-on-year growth, with January alone contributing ₹9,338 crore (an 11 percent monthly increase over the previous year).
The government viewed this as evidence of improving administrative efficiency through digital monitoring, better inter-departmental coordination, and policy reforms.
By January, Commercial Tax department collected ₹42,861 crore (64 percent of its ₹66,510 crore target), including ₹27,659 crore from GST (also 64 percent of its ₹43,020 crore goal). This reflects a 4 percent year-on-year growth, with January recording a 6 percent monthly rise.
Stamps and Registration have shown the most impressive surge, collecting ₹9,103 crore — a 27 percent increase over the corresponding period last year and 81 percent of the ₹11,221 crore target. January alone saw ₹1,021 crore, a 29 percent monthly jump, driven by improved property registrations and digitisation.
Mines and Geology posted a 33 percent growth to ₹2,432 crore (56 percent of ₹4,349 crore target), with January recording a sharp 56 percent monthly increase to ₹281 crore. Motor Vehicle Tax grew 6 percent to ₹4,016 crore (68 percent of target).
Excise collections stood at ₹14,968 crore (56 percent of ₹26,870 crore target), showing a 7 percent dip year-on-year but a strong 12 percent rebound in January. Non-tax revenue overall is also improving, with forest and mining income contributing significantly.
Central funds have supplemented these efforts. The state received ₹57,039 crore from the Centre (2 percent higher than last year), including ₹46,127 crore in tax devolution and ₹3,508 crore in Finance Commission grants. Total revenue receipts reached ₹1,40,540 crore, up 4 percent.
CM Chandrababu Naidu, after the presentation at the high level meeting with ministers and secretaries, directed specific action to accelerate revenue growth and improve financial health.
One major initiative is the sale of red sanders (red sandalwood) lying with the Forest Department. Naidu instructed officials to auction these valuable reserves, estimating that they could generate substantial sums in crores of rupees.
Red sanders, a highly prized and restricted species endemic to parts of Andhra Pradesh, particularly around Tirupati, represents a significant untapped asset. Monetising existing stocks through legal, transparent auctions including international tenders is expected to provide a quick boost to non-tax revenue without new taxation.
Another focus is the prompt utilisation of funds under the head Central Assistance to State Plan (CASP). The state has received ₹6,579 crore so far under these schemes, though slightly lower than last year.
Naidu warned the officials that he would hold them responsible for any lapse or under-utilisation of central funds. He directed departments to spend allocated money immediately on sanctioned projects.
For the next financial year, the state anticipates ₹26,021 crore from central schemes, underscoring the need for faster implementation and better project monitoring.
A key innovative step involved unlocking resources in Personal Deposit (PD) Accounts. PD accounts function as banking-like mechanisms maintained directly within the state treasury. They are created to facilitate specific government schemes or projects by transferring funds from the state’s Consolidated Fund. Designated officers (administrators) operate these accounts to incur expenditure for approved purposes.
Under standard rules, unspent funds in PD accounts are supposed to lapse and return to the government account by 31 March of the following financial year. However, many accounts accumulate “unclaimed deposits” — funds that remain idle due to project delays, incomplete documentation, or other reasons.
As of February 2026, the government has identified 1,04,727 such PD accounts holding ₹148 crore in unclaimed deposits.
Naidu directed district collectors to complete KYC verification for these accounts so the funds can be utilised for local developmental and public welfare activities.
So far, only 7,742 accounts (holding about ₹34 crore) have undergone KYC. The administration is leveraging the Comprehensive Financial Management System (CFMS) for transparent tracking to ensure these idle resources are productively deployed rather than lapsing unused.
The government is also emphasising systemic reforms. Naidu instructed officials to collect taxes efficiently without harassing businesses or traders.
He called for simplification of rules across departments — fire services, urban local bodies, forests, school education, and others — to improve the “ease of doing business.”
A single-window clearance system, particularly for sand, mines, and construction materials, is being thought of to remove bottlenecks, especially for capital city development projects in Amaravati.
(Edited by Amit Vasudev)
