HYDERABAD: The state government is mulling increasing liquor prices by 10% to 15% — with 20% being the outer limit — on all varieties of liquor, ordinary, medium and premium, to overcome the revenue deficit of around Rs 2,000 crore in the first two quarters of the financial year.
According to government sources, the price hike is still under review and could be implemented in the fourth quarter of the fiscal year. The state’s rate fixation committee is expected to make its recommendations soon following which a final decision on the price hike will be made.
It may be mentioned here that the government’s Budget Estimates for 2024-25 predicted Rs 25,617.53 crore in revenue from state excise. However, the actual collections have fallen short by Rs 2,000 crore, with the Excise department unable to recover at least half of the deficit.
This shortfall has created a pressing need for revenue-raising measures, with a price increase seen as one of the most immediate solutions.
Liquor shop auction timings impacted this year’s collection: Excise official
A senior official in the Excise department, requesting anonymity, noted that the timing of liquor shop auctions may have contributed to the revenue gap. “The auctions, which were supposed to take place this financial year, were conducted in the previous fiscal year,” the official said.
In the previous financial year, while the state government estimated a revenue income of Rs 17,482.19 crore, it actually collected Rs 18,470.45 crore.
The Excise department has increased liquor prices about two years ago.
It may be mentioned here that the main Opposition BRS has accused the state government of increasing liquor prices during the passage of the annual financial statement.