
Order to Boost Government Exchequer via AI
The Chief Minister requested that the AI-powered system of taxation be set up by the government officials in three months. He also mentioned that this implementation of AI is expected to make the taxpayers receive the services and using the AI tools. The Governor also appointed the Secretariat for the review of the performances of all the different branches of government that bring in revenue.
After sitting down with his officials, the Chief Minister authorized the installation of AI-based taxation in three months. The aim of the new system is to resolve the issues of AI tools that could support the taxpayers.
Focus on Performance and Revenue Gaps
CM Chandrababu said Andhra Pradesh is one of the most active gold buying states in the country, and the tax return is not a true depiction of the same. He wanted the authorities to get to know the revenue situation in the states of others as well. The state of Karnataka and Tamil Nadu have comparative advantages in road transportation, said CM Chandrababu.
Departments were asked to meet and exceed monthly revenue goals. He also stressed the need to put an end to illegal liquor smuggling from states. There has to be real-time tracking systems in place to monitor liquor sales from the supply source to the retail level.
Utilization of Red Sandalwood Resources
Chandrababu requested the creation of a committee to evaluate and ascertain the worth and volume of the red sandalwood in the state. The resource, worth thousands of crores, has to be marketed in the international market to generate more revenue. He also highlighted that certain departments did not show anticipated progress in the past year.
Revenue Target Set at ₹1.34 Lakh Crore
The honorable officials briefed the Chief Minister about the setting of a revenue target of ₹1,34,208 in for 2025-26. It consists of the income gained through commercial taxes, excise, stamps and registration, mines, and forests. This target is 29% more than last year.
Quite a big revenue reducement is visible in the commercial tax and forest departments from April 1 to May 11. However, the stamps and registration department has seen growth. Officials stated that the central government released only ₹12,717 crore by May 11—29% less than the ₹17,170 crore released during the same period in 2024–25.
Excise Revenue Growth Under New Policy
An increase in the state's revenue was due to the introduction of the new excise policy. In April, the government was able to collect ₹2,116 crores of alone. Andhra Pradesh had revenue of ₹28,842 crore solely from excise during the fiscal year 2024–25, showing a 14.84% increase over the previous year. The estimated excise collection for 2025–26 is ₹33,882 crore. Officials stated that even with this increase, AP's excise revenue remains lower than Telangana, Tamil Nadu, and Karnataka.