NCAER report on liquor ban intensifies political debate in Bihar.
Patna. A new research report has reignited the debate surrounding the liquor ban in Bihar. A study by the National Council of Applied Economic Research (NCAER) has questioned the current prohibition regime and recommended its revocation. The report claims that the ban has failed to achieve the expected success in curbing violence against women. Furthermore, there are indications of a rise in the consumption of illicit liquor and narcotics following the halt in the availability of legal alcohol.
The research paper, titled “Bihar’s Development Achievements: A Broad Perspective, Unfinished Agenda, and the Way Forward,” analyzes various aspects of the state’s economy, social development, and revenue. The report reviews the impact of the liquor ban, identifying it as a significant issue concerning Bihar’s economy and administrative system.
Questioning the Objective of Curbing Violence Against Women
One of the Bihar government’s primary arguments for implementing the liquor ban was to reduce alcohol-related domestic violence and violence against women. However, the NCAER study states that the ban has not been as successful as anticipated in preventing violence against women.
According to the report, the problem of violence has not been entirely eliminated despite the legal prohibition on the sale and consumption of alcohol. The study also highlights a shift in consumer behavior following the ban, noting signs of a growing inclination towards illicit liquor and other intoxicants in place of legal alcohol.
However, such findings must be viewed within the context of the broader policy debate on prohibition. Proponents of the ban have long linked it to social reform and women’s safety, while critics have raised questions regarding its implementation, the proliferation of illicit liquor, and the loss of revenue.
The Challenge of Illicit Liquor and Narcotics
The research also indicates that following the legal ban on alcohol, some consumers turned to alternative intoxicants and illicit liquor. This has created a new challenge for the system responsible for enforcing the prohibition. The police and administration are required to take continuous action to curb the illicit liquor trade. Additionally, surveillance and enforcement activities must be stepped up at state borders to prevent smuggling. An NCAER study highlights the economic significance of the expenditure incurred on these operations.
According to the report, prohibition not only deprives the government of excise revenue from liquor but also necessitates the deployment of additional administrative resources to combat illicit liquor trade and smuggling.
Projected 14–15% Increase in Revenue
The NCAER study projects a significant rise in the Bihar government’s own revenue if liquor excise duties are reintroduced. The report estimates that reinstating these duties could boost the state’s own revenue by approximately 14 to 15 percent.
From a revenue perspective, this proposal is considered crucial for Bihar. The state’s economy has long grappled with challenges such as low per capita income and limited state tax collection. Another NCAER report on Bihar has also noted the state’s low tax and non-tax revenue collection and its heavy reliance on central transfers.
Consequently, the additional revenue generated from liquor excise duties could be utilized for education, healthcare, infrastructure, and other developmental activities. However, this would ultimately depend on policy decisions and the government’s priorities.
Claim of Reduced Expenditure on Anti-Smuggling Operations
The research paper does not merely discuss revenue growth; it also suggests that restoring the liquor excise system could reduce government spending on enforcement and anti-smuggling operations.
Under the current system, the police and administration must constantly intervene to curb the illegal sale, transportation, and smuggling of liquor. Surveillance is also maintained over the movement of liquor across state borders. If the legal sale of liquor and the associated tax regime were restored, the nature of government surveillance and enforcement could change. Political Debate on Alcohol Prohibition May Reignite
Following the release of the NCAER study, the political and social debate surrounding Bihar’s alcohol prohibition policy is likely to intensify. On one hand, prohibition has been viewed through the lens of social reform, the economic well-being of families, and women’s safety; on the other, it has raised concerns regarding revenue loss, the illicit liquor trade, and smuggling.
The recommendation to lift the ban is particularly significant because prohibition has long been a politically sensitive issue in Bihar. Consequently, any change would impact not only revenue but also social and administrative spheres.
The NCAER study has brought to the fore the need to examine the effects of prohibition from both economic and social perspectives. The report suggests that reinstating alcohol excise duties could boost revenue and reduce enforcement costs, while also questioning the effectiveness of the ban in achieving its social objectives.
All eyes are now on how the Bihar government views the study’s findings and whether it decides to move towards altering the existing prohibition policy.
