With funds received from the Centre declining in the first 40 days of this financial year as compared to the corresponding period last year, Andhra Pradesh Chief Minister N Chandrababu Naidu has stressed the need for the state to become self-reliant by improving departmental performance.
From April 1 to May 11 this financial year, the central government transferred Rs 12,717 crore to the state – a drop of 26% as compared to the Rs 17,170 crore Andhra Pradesh received during the same period in FY 2024–25.
Naidu’s TDP is an NDA partner in the state and the Centre. The CM observed that the state needs to become self-reliant by strengthening its revenue sources: “Central assistance and loans are only meant for initial support, and sustainable growth must be achieved through improved departmental performance. Only then can the state allocate adequate funds for development and welfare schemes.”
Some of the measures he suggested to increase revenue are increased liquor sales, international auction of red sandalwood, and an investigation into possible tax evasion on gold purchases.
During a meeting with officials from various departments on Tuesday, Naidu said the state does not have the privilege of having , which generates 75% of Telangana’s revenue, and directed officials to explore new avenues to increase revenue.
Noting that Andhra Pradesh ranks among the top states in gold consumption, but the corresponding tax revenues are not proportionate, Naidu instructed officials to investigate this and implement measures to prevent tax evasion.
Stressing on increasing the revenue from the new excise policy, the CM instructed officials to take stringent measures to prevent illegal liquor sales from neighbouring states. He directed that the entire process, from supply to retail, be tracked in real time to ensure transparency so that there is no loss of revenue.
Naidu said that his government’s new excise policy has led to an increased revenue in 2024–25, with the state earning Rs 28,842 crore – a 14.84% rise over the previous year. However, as compared to southern states like Telangana, , and Karnataka, Andhra Pradesh’s excise revenue remains relatively low. He noted that a few departments have not met their expected progress in the past year and emphasised the need for improved performance across the board.
Seeking a report on the existing stock of red sandalwood in the state, Naidu suggested forming a committee to facilitate an international auction.
Questioning why Andhra Pradesh’s transport revenue remains lower than that of neighbouring Karnataka and Tamil Nadu, he called for an immediate investigation and corrective policy measures. He stressed that revenue departments must strive to exceed monthly targets.
Officials said that the revenue target for the financial year 2025–26 from various sources – commercial taxes, excise, stamps and registration, mines, forests, etc – has been set at Rs 1,34,208 crore, reflecting a 29% increase over the previous year.
From April 1 to May 11 this financial year, revenue from commercial taxes and forests saw a decline, while income from the stamps and registration department surged, officials said.
