Chief Minister N Chandrababu Naidu asked officials to pay particular attention to improving collections in the services sector. He directed strict real-time monitoring through the Andhra Pradesh Tax Information System.
Published Aug 16, 2025 | 9:00 AM ⚊ Updated Aug 16, 2025 | 9:00 AM
Andhra Pradesh Chief Minister N Chandrababu Naidu
Synopsis: Andhra Pradesh Chief Minister N Chandrababu Naidu on 14 August, directed officials to intensify efforts to boost state revenues beyond the growth projected in the 2025–26 Budget to fund major welfare schemes, including the newly-launched ₹1,942-crore annual free bus travel programme for women.
As Andhra Pradesh continues to grapple with financial challenges, the state government is focusing on ramping up receipts from key revenue-generating departments.
As overall revenues are expected to grow by about 8 percent compared to last year according to 2025-26 budget predictions, Chief Minister N Chandrababu Naidu, at a review meeting on Thursday, 14 August, directed officials to intensify efforts further.
The state already has an ambitious target of 15 percent for the current fiscal year, which is seven percentage points higher than the 2025-26 budget projections.
The push to enhance the state’s own resources is aimed at funding the TDP-JSP-BJP coalition government’s ambitious welfare programmes.
Among these is the newly launched free bus travel scheme for women in APSRTC buses, one of Naidu’s Super Six promises, which alone will add a burden of ₹1,942 crore annually on the state exchequer.
Naidu asked officials to pay particular attention to improving collections in the services sector. He directed strict real-time monitoring through the Andhra Pradesh Tax Information System.
A key instruction was to prevent contractors from purchasing petrol and diesel in neighbouring states where fuel is cheaper.
He mandated that all contractors executing works in Andhra Pradesh must buy fuel within the state, a measure expected to plug losses, as the state has previously lost nearly ₹20 crore in VAT on diesel sales to cross-border purchases.
On the excise front, Naidu reiterated that public health must take precedence over revenue generation.
The new excise policy, effective 1 September 2025, will accord priority to the sale of quality liquor to reduce health risks while still contributing substantially to the treasury.
The policy is projected to yield ₹700 crore from licensing fees alone and a total of ₹27,097 crore in excise revenue for the fiscal year.
The Chief Minister also called for scientific assessment of land values to prevent artificial inflation and ensure transparency in property registrations.
Official records show that Andhra Pradesh recorded 68,000 property registrations in early 2025, generating ₹475 crore in revenue. Stamp duty stands at 5 percent of market value, with recent hikes of up to 20 percent in select locations to ensure fair valuation.
Naidu stressed the integration of artificial intelligence (AI) to track tax evasion, detect fraud in GST filings, and curb revenue leakages.
Andhra Pradesh has already become the first state in India to deploy AI for monitoring GST fraud and misuse of input tax credits.
The meeting also reviewed progress on green mobility initiatives. Naidu directed the continuation of subsidies for electric vehicles (EVs) under the Sustainable Electric Mobility Policy 4.0 (2024–2029).
The policy offers a 25 percent capital subsidy up to ₹3 lakh for the first 5,000 charging stations.
Official sources said that as of late 2024, EV adoption in the state stood at 6.2 percent, slightly below the national average of 7.39 percent.
The government aims to improve uptake through tax streamlining, RTGS-based monitoring of vehicle payments, and enforcement of the central scrap vehicle policy.
Naidu also underlined the untapped potential of natural resources. He directed that drones and satellites be used to monitor mining activity, with revenues tracked through data analytics.
On red sanders, he noted that Andhra Pradesh could earn nearly ₹1,500 crore from international sales of existing stockpiles. Official data suggests that premium grades can fetch up to ₹7.5 lakh per tonne in global markets.
The Chief Minister also urged officials to explore the commercial potential of bamboo, which can be harvested within three to five years.
He noted that bamboo-based products – such as furniture and handicrafts – could yield up to ₹10 lakh per acre, offering both revenue for the state and livelihoods for rural communities.
Additional directives included GIS mapping of land records, integration of e-registration with property boundaries, and adoption of auto-mutation in municipalities via RTGS-linked data.
Errors in municipal records are to be geo-tagged and corrected, with Aadhaar, mobile, and electricity records integrated to strengthen tax collections.
(Edited by Dese Gowda)
