Despite topping the list of states in purchasing gold, Andhra Pradesh has not registered any significant growth when it came to tax revenues, Chief Minister N Chandrababu Naidu said on Tuesday.

He pointed out that central assistance and loans were only for initial support to the state and AP needs to be self-reliant to allocate sufficient resources for welfare and development. Even the central government’s fund transfers to the state dropped by 26 per cent during this period compared to last year.

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The chief minister directed officials to use the latest technology, such as AI, to plug the loopholes that allowed tax evasion.

Naidu today held a review with revenue-generating departments and pointed out that despite the grants and loans from the Centre, Andhra Pradesh needs to increase its revenue sources.

Andhra Pradesh, after bifurcation, turned into a revenue-deficient state since it lost revenue-generating Hyderabad city to Telangana. Naidu said they need to look for new sources of revenue to offset the loss of Hyderabad. AP had received Rs17,170 crore from the Centre during this period in 2024-25 but this year received only Rs12,717 crore when the state is being ruled by the coalition government.

The chief minister, during the meeting where each department was analysed one at a time, stressed detailed planning, based on revenue trends of the past 30 years. He pointed out that the Electronics, IT, Services sector would play a crucial role in boosting the state’s revenue. The revenue target for this year was set at Rs 1,34,208 crore with a 29 per cent jump from the previous year.

The chief minister sternly directed departments to make efforts to exceed their monthly targets.

Naidu expressed concern that although Andhra Pradesh ranks among the top states in gold consumption, the corresponding tax revenues were not proportionate. He also directed officials to create a central Data Lake, a repository of data stored in its original format, after integrating information from all departments.

He said each department should have its own AI team, and the AI-driven tax system should be operational within the next two to three months for better services to taxpayers. While revenue from commercial taxes and forests dipped between 1 April and 11 May, that of the stamps and registration department surged in this period. He inquired why the state’s transport revenue remained lower than neighbouring states like Karnataka and Tamil Nadu.

He also instructed the excise department to take stringent measures to curb illegal liquor sales from neighbouring states.