Liquor revenue dip worries Vasundhara Raje govt

Jaipur: Blame it on demonetisation or steady decline in the number of tipplers, there was a sharp fall in alcohol consumption in Rajasthan in the last financial year. But instead of rejoicing the news, the Vasundhara Raje government is worried at the prospect of empty coffers.

With 12 per cent contribution to the total tax receipts, the excise department is the second largest tax revenue earner for the state exchequer. Income from liquor sale has been registering a compound annual growth rate of 20 per cent in the last five years. Thus, it wasn’t surprising to see the excise department cracking a whip on its officials to achieve revenue targets after collecting only Rs 4,167 crore in the first nine months of this financial year against the ambitious target of Rs 7,310 crore. “We have been issued directions to increase sale of liquor in the districts or else government vehicles will be taken away from us,” a district excise official said.

Further, notices have been issued and leaves were cancelled for the month of March in order to ensure more than 100 per cent lifting of the stock; a daunting task considering as many as 19 districts have reported 28 per cent drop in liquor sale while rest of the district have reported 7-10 per cent decline.

(Source: Rajasthan excise department)

“The sector was growing at a steady at 19 per cent, but after the note ban sales declined by 20 per cent,” a district excise official said.

While, the excise department may be prudent from financial view point, it seems politically incorrect at a time of growing clamour for prohibition. Alcohol ban considered a key factor in Nitish Kumar and Left Front’s victories in Bihar and Kerala. Prime Minister Narendra Modi, who declared Gujarat dry state after becoming the chief minister a decade ago, recently lauded Mr Kumar for effective implementation of liquor ban.

Within the state too, anti-liquor movement has been gaining momentum, especially after death of former MLA Gurusharan Chhabra who died 33 days into his hungerstrike for this cause. 

In fact, last year people in Kachchbali village in Rajsamand district made a history by voting to shut the only liquor shop in their village. Three months ago, Surota village panchayat in Bharatpur district decided to ban sale and consumption of liquor.

Yet, the Raje government has decided to boost alcohol consumption to fill its coffers. In the new excise policy, the government has made provisions of 10 per cent concession in rates to liquor shop owners if they exceed the target vice versa there is a penalty for failing to lift adequate stock. All this to achieve excise revenue target of Rs 8,300 crore in the next financial year announced in the budget speech by chief minister Vasundhara Raje on March 8.