
There has been a huge political upheaval in the political and administrative corridors of Bihar after a new research paper came out. In a recent report by the country’s well-known economic think tank ‘National Council of Applied Economic Research’ (NCAER), the Bihar government has been advised to end complete prohibition and start regulated sale in its place. Ever since this report came out, a heated debate has once again erupted in the state regarding the pros and cons of prohibition and murmurs have intensified not only in the opposition parties but also in the ruling circles.
What does NCAER’s research report say and why are questions being raised?
This research report (Macro Perspective of Bihar’s Development Achievements, Unfinished Agenda and the Way Forward), prepared under the leadership of economist Ratna Sahay, claims that when complete prohibition was implemented in Bihar in April 2016, its main objective was to stop domestic violence and crimes against women. However, citing sufficient data in the report, it has been said that even after the prohibition, there has been no significant reduction in crimes registered against women, on the contrary, there has been an increase in the figures. Research has also underlined that since the ban, bootlegging and consumption of synthetic drugs and other alternative intoxicants have increased rapidly in the state.
Huge loss of revenue and advocacy of regulated sales
The biggest focus of this research report is on the economic condition of the state and tax collection. According to the report, before the implementation of liquor ban, the revenue from Excise Duty used to be about 14 to 15 percent of the total income of the Bihar government. Since the ban, the government is incurring huge losses every year on this huge revenue, and on top of that, there is additional financial burden on the police and administrative agencies involved in monitoring and preventing smuggling of illicit liquor. Research has suggested that if the government ends prohibition and starts selling liquor in a transparent and regulated manner, it can lead to a huge increase of 14 to 15 percent in the state’s own revenue, which can be used for education, health and infrastructure development.
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