HYDERABAD: The Prohibition and Excise Department always comes to the rescue of the State government whenever it finds itself in a dire financial straitjacket as it is now, following the Centre’s diktat that it cannot raise loans this year as it had already reached the FRBM limit for going in open market borrowings.
As the State would be in the hole of Rs 53,000 crore this fiscal on account of the new restriction, it is looking for ways to augment its own resources among which is the excise department which has been asked to jack up the price of the liquor by 20 per cent after a gap of two years. The prices came into force on Thursday. The hike would help the State rake in an additional Rs 3,000 crore to Rs 4,000 crore but this too is a drop in the bucket for the State.
The State government had enhanced liquor prices in May, 2020, when the government came under financial stress following the Covid-19-induced lockdown. Now, it is facing a major crisis again, with the Centre not allowing it to go in for open market borrowings. After the government jacked up the price, the maximum retail price (MRP) of brands with present MRP less than Rs 200 has gone up by Rs 20, Rs 40 and Rs 80 for 180 ml, 375 ml, and 750 ml bottle respectively.
The MRP of brands with present MRP greater than Rs 200 are increased by Rs 40, Rs 80, and Rs 160 for 180 ml, 375 ml, and 750 ml bottle respectively. The MRP of wine brands also shot up by Rs 10, Rs 20, and Rs 40 for 180 ml, 375 ml, and 750 ml bottle respectively. MRP of beer brands also went up Rs10 for all sizes of bottles.
People will now drink less, says Excise dept director
However, the Prohibition and Excise Department director said that the increase in prices would lead to moderation in the consumption of liquor and beer in the State. The new rates are applicable even for stocks with old MRP printed on them.“Strict action will be initiated against licensees violating the MRP and any such instance may be reported on 18004252523. The brand and size-wise list of latest MRPs is available on htpps://tsbcl.telangana.gov.in/ts, an official press release said.
increased revenue just a drop in the bucket
After a gap of two years, the Excise dept was asked to jack up the price of the liquor by 20 per cent which would help the government rake in an additional Rs 3,000 crore to Rs 4,000 crore. However, this is a just a drop in the bucket