Date: April 10, 2025
AP Government to Leverage AI to Tackle Tax Evasion
Chandrababu Naidu’s Tech-Driven Vision for Economic Reform of Tax Evasion
In a significant move aimed at strengthening Andhra Pradesh’s financial foundation, Chief Minister N. Chandrababu Naidu has directed state authorities to implement Artificial Intelligence (AI) to detect tax evasion and optimize revenue generation. This tech-forward strategy is part of his broader vision to make Andhra Pradesh a self-sustaining and economically independent state.
Fighting Tax Evasion With Technology
During a recent review meeting with the state finance committee at the Secretariat, Naidu underlined that tax evasion and unregulated financial reporting continue to hinder the state’s ability to fund development projects and welfare schemes. To combat this, he urged officials to integrate AI and data analytics into the system to flag suspicious transactions and unreported revenue streams.
Digital Billing Mandate for Vendors
The Chief Minister also mandated digital billing practices at every level of commerce. From small vendors to large retailers, all transactions are to be digitally recorded to ensure transparency and accountability. Naidu emphasized that this digital transition is essential not only to detect evasion but also to track taxable activities across sectors.
₹1.37 Lakh Crore Revenue Goal Set
To achieve financial self-reliance, Andhra Pradesh has set a tax revenue target of ₹1,37,412 crore for the current fiscal year. Naidu instructed officials to analyze municipal data, particularly occupancy certificates, to pinpoint untapped tax potential in the housing and commercial sectors. AI will be crucial in processing these large datasets for actionable insights.
Revenue Already on the Rise
Encouragingly, Andhra Pradesh has seen a 2.2% growth in annual revenue compared to the previous year. While this is a step in the right direction, Naidu emphasized the importance of using advanced technology, transparent governance, and proactive policies to maintain this growth trajectory.
AI: The Future of Public Finance in AP
This AI-powered initiative not only aligns with global digital governance trends but also reinforces Chandrababu Naidu’s image as a technologically progressive leader. If implemented effectively, this model could serve as a template for other Indian states looking to modernize their tax systems and enhance financial integrity.