The Andhra Pradesh government is utilizing artificial intelligence (AI) to enhance tax monitoring and boost revenue. The state is exploring AI-driven solutions to streamline tax compliance, reduce evasion, and increase revenue collection. This initiative is part of the state's efforts to improve its fiscal health and achieve its revenue goals.
AI technology can process vast amounts of data swiftly, identifying patterns that may signal compliance concerns. This capability is particularly valuable in India, where regulatory standards are rigorous and the repercussions of non-compliance can be significant. By automating routine tasks, AI can help tax authorities optimize resource allocation for enforcement activities, enhancing compliance and contributing to a fair and transparent tax system.
The state's budget for 2023-24 aims to increase revenue expenditure by 11% and capital outlay by 84% over the revised estimates of 2022-23. The government is also focusing on improving tax compliance and reducing revenue deficit. With the help of AI-driven tax monitoring, Andhra Pradesh aims to achieve a fiscal deficit of 3.8% of GSDP (Rs 54,588 crore) in 2023-24.
A similar initiative in Uttar Pradesh has shown promising results. The state's tax department used an AI module to generate notices, resulting in GST deposits of Rs 980 crores during the Financial Year 2023-24. Andhra Pradesh can draw inspiration from this success story to enhance its own tax revenue collection efforts.
By leveraging AI-driven tax monitoring, Andhra Pradesh can improve its revenue collection, reduce tax evasion, and enhance compliance. This initiative is a step towards creating a more efficient and effective tax system, which can contribute to the state's economic growth and development.
