T he Prime Minister and Finance Minister have delivered a true Deepavali gift to the citizens of India by reducing the number of slabs under the Goods and Services Tax (GST) to only two: 5% and 18%. This is also a strategic response to global trade uncertainty, such as the 50% tariff on Indian goods by the U.S. Yet, the fiscal challenge for the States remains, as 6-8% of collections came from the 5% slab, 5-6% from the 12% slab, 70-75% from the 18% one, and 13-15% from the 28% one. This exposes them to short-term revenue risks.

Andhra Pradesh has demonstrated a strong fiscal performance in recent times, with its GST collections recording a 21% surge in August 2025, reaching a gross collection of ₹3,989 crore. This buoyancy, driven by improved compliance and an expanding tax base, provide

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