In an effort to reduce government spending, the Andhra Pradesh Government is considering cash payments to beneficiaries of the Public Distribution System (PDS) instead of providing rice, as suggested by the Andhra Pradesh State Directorate of Revenue Intelligence (APSDRI).
APSDRI conducted a comprehensive study comparing various policies and schemes in the state with best practices from other states, and proposed several measures to address revenue leakage. One of the recommendations is to issue cash to PDS beneficiaries rather than rice, as the subsidy on rice is higher than the cash offered. This change could alleviate financial strain on the government.
Additionally, APSDRI examined the conversion of agricultural land to non-agricultural land by analyzing satellite images and discovered discrepancies in land records for construction sites. They proposed a new policy on “NALA conversion” based on procedures in other departments. The use of satellite maps for real-time NALA tax collection was also suggested to improve efficiency.
The Directorate uncovered non-payment of GST on pole rental charges by Discoms and alerted the State GST authorities to recover the unpaid taxes. Furthermore, they identified GST evasion by Instrument Cluster Manufacturers and sand contractors, resulting in significant losses for the Andhra Pradesh Mineral Development Corporation during the previous government’s term from 2019-24.
Overall, APSDRI’s recommendations aim to enhance revenue collection and reduce financial burdens on the government through strategic policy changes and enforcement measures.
