Hyderabad:At a time when many sectors were already suffering due to economic recession like situation, the sudden attack of COVID-19 has added to the misery. All industrial and service sector activities stopped, resulting in huge loss of revenue to the government treasuries.
At the same time, there have been demands that the Centre, which is leading the fight against COVID-19, must also bail out the states with economic stimulus. The central government, which has been deaf to these requests, recently allowed opening of liquor shops with certain conditions.
The loss of revenue to the states with the closure of liquor shops for nearly a month and a half was estimated to be around Rs. 30,000 crores. More than 20 per cent of the incomes of the Uttar Pradesh, Uttarakhand, and Karnataka governments and 15-20 per cent of the budget of West Bengal, Chhattisgarh, Himachal Pradesh, Punjab and Telangana is derived from the Excise Department.
Compared to the Centre, the states have been bearing one-and-half time more financial burden and shouldering five times more employees, and revenues from alcohol have been a key component of the states' budgets for decades. In the absence of any financial support from the Centre, the states have eagerly accepted the opportunity by opening liquor shops.
To make good use of the opportunity to offset some of the deficit, Delhi has increased 70 per cent, Andhra Pradesh 75 per cent, Telangana 16 per cent and West Bengal 30 per cent on the existing rates of liquor. In view of record sales with queues of buyers for kilometres, the alcohol industries are demanding that the distilleries be allowed to work more shifts to meet the increased demand.
Read:Alcohol may put people at increased risk of coronavirus: WHO
Who will answer the questions raised by the society, as to why all the positive results achieved during the 40-day lockdown are now being wasted?