Punjab Chief Minister, Captain Amarinder Singh’s evaluation that the Centre’s refusal to allow the sale of liquor would by itself account for a loss of Rs 6,200 crore to the state, has indicated how in the post Covid-19 scenario, the country was in the face of an exceedingly grave economic crisis. While the Captain was addressing a specific query, regarding the ban on alcohol, it is widely understood that the next colossal challenge confronting the nation would be to somehow semi-retrieve the economy.
The projection of a growth-rate of less than 1% could become a matter of consequential concern for the Central government, which almost over the past six years has been unable to get the needful hold on how to deal with the financial situation. It goes without saying that the Prime Minister needs to induct a competent team of financial experts to set straight this complex issue and perhaps, what is required are steps similar to those taken by P.V. Narasimha Rao in 1991, when he brought in Dr Manmohan Singh as his Finance Minister to cope with the acute crisis following the collapse of both the V.P. Singh and Chandra Shekhar governments.
In this vast country, there is no dearth of capability, but the right person for the right job has to be hand-picked for the recuperation of the economy. Obviously, the choice of identifying the appropriate candidate is the prerogative of the Prime Minister, who on the advice of his most-trusted lieutenants, must, without any further delay, act on this front.
Amarinder Singh hit the nail on the head, when he, without mincing words, illustrated the ramifications of prohibiting the sale of liquor. It is a well-documented fact that for most of the states, liquor rakes in a sizeable revenue. Ironically, in the capital of the country, various public sector undertakings and their heads have been continuously competing with each other to showcase the revenue they have collected by selling both imported and “Indian Made Foreign Liquor”. It is a closed-door topic to discuss the hefty consumption of alcohol—it, for most, falling under the taboo zone. The fact, however, remains that it is a multitudinous contributor to the state exchequer.
When decades ago, undertakings like the Delhi State Industrial Development Corporation and Delhi Tourism were set up, no one would have imagined that instead of promoting industry and tourism, the prime focus of these bodies would be to sell alcohol. This, however, is the hard truth; and to ensure that the revenue collection went up many folds, the Delhi government, during the tenure of Sheila Dikshit, as the Chief Minister, permitted shops to open at 11 in the morning till 10 at night.
Prior to this, there were specific timings and designated dry days for the trade. This was relaxed by Dikshit, and a maximum number of outlets in various places were sanctioned bar licences. Effectively, in order to augment revenue, the government encouraged, rather than discouraged, the consumption of alcohol. It is obvious that Delhi, like Punjab, is also experiencing a financial crunch.
Amarinder Singh’s thesis is that when sale of vegetables that can possibly be contaminated, where lay the logic in barricading the sale of alcohol, which is sold in securely sealed bottles? He also lamented the loss his state was incurring, since the Centre had not coughed-up the GST that was due—compounding to thousands of crores.
While the Punjab CM has been most straightforward regarding the matter, neighbouring Haryana and Rajasthan, as also many other states would be bearing the brunt. In Haryana, even after the lockdown, liquor shops remained open, in full-view, for a few days, probably because the authorities were “convinced” that it was an essential staple. The close-down occurred after media exposé.
Prohibition, as a policy, has received wide support from women in particular, since they have to endure the painful impact of the men in their families, violently squandering hard-earned money on vile intoxication. However, the other dimension: it has boosted bootlegging. In the late 1990s, when Bansi Lal was the Haryana Chief Minister, he introduced Prohibition. However, anti-social elements took advantage of the situation, starting home-supply of the beverage. When Prohibition was lifted, it led to a sudden spurt in criminal activity by these hardened elements—in a state, which was once the safest to drive through—at any hour of the day or night. In Gujarat, liquor is officially banned, but is available at a premium, via middlemen in hotels and restaurants.
If the stoppage of the sale of liquor has not resulted in the rise of moonshining, it essentially is because the bootleggers had no time to procure/produce their brew, following the no-notice sudden lockdown. Things would have taken a different course—with reports of blinding or deaths, due to the consumption of hooch, sharing near equal space with patients of Covid-19.
In all likelihood, the government may extend the containment beyond May 3. However, at the same time there is an identical necessity to pay undivided attention to the economy and various essential services that are not included in the official list. To begin with, outlets providing electrical goods, plumbing equipment, stationary and everyday living essentials, that are part of the common man’s life, must be open for a limited number of hours.
Undoubtedly, at many junctures, the lockdown was of prime importance, but as of now, a reassessment is required, based on accurate figures. It is the economy that needs to be resuscitated. Between us.
The projection of a growth-rate of less than 1% could become a matter of consequential concern for the Central government, which almost over the past six years has been unable to get the needful hold on how to deal with the financial situation. It goes without saying that the Prime Minister needs to induct a competent team of financial experts to set straight this complex issue and perhaps, what is required are steps similar to those taken by P.V. Narasimha Rao in 1991, when he brought in Dr Manmohan Singh as his Finance Minister to cope with the acute crisis following the collapse of both the V.P. Singh and Chandra Shekhar governments.
In this vast country, there is no dearth of capability, but the right person for the right job has to be hand-picked for the recuperation of the economy. Obviously, the choice of identifying the appropriate candidate is the prerogative of the Prime Minister, who on the advice of his most-trusted lieutenants, must, without any further delay, act on this front.
Amarinder Singh hit the nail on the head, when he, without mincing words, illustrated the ramifications of prohibiting the sale of liquor. It is a well-documented fact that for most of the states, liquor rakes in a sizeable revenue. Ironically, in the capital of the country, various public sector undertakings and their heads have been continuously competing with each other to showcase the revenue they have collected by selling both imported and “Indian Made Foreign Liquor”. It is a closed-door topic to discuss the hefty consumption of alcohol—it, for most, falling under the taboo zone. The fact, however, remains that it is a multitudinous contributor to the state exchequer.
When decades ago, undertakings like the Delhi State Industrial Development Corporation and Delhi Tourism were set up, no one would have imagined that instead of promoting industry and tourism, the prime focus of these bodies would be to sell alcohol. This, however, is the hard truth; and to ensure that the revenue collection went up many folds, the Delhi government, during the tenure of Sheila Dikshit, as the Chief Minister, permitted shops to open at 11 in the morning till 10 at night.
Prior to this, there were specific timings and designated dry days for the trade. This was relaxed by Dikshit, and a maximum number of outlets in various places were sanctioned bar licences. Effectively, in order to augment revenue, the government encouraged, rather than discouraged, the consumption of alcohol. It is obvious that Delhi, like Punjab, is also experiencing a financial crunch.
Amarinder Singh’s thesis is that when sale of vegetables that can possibly be contaminated, where lay the logic in barricading the sale of alcohol, which is sold in securely sealed bottles? He also lamented the loss his state was incurring, since the Centre had not coughed-up the GST that was due—compounding to thousands of crores.
While the Punjab CM has been most straightforward regarding the matter, neighbouring Haryana and Rajasthan, as also many other states would be bearing the brunt. In Haryana, even after the lockdown, liquor shops remained open, in full-view, for a few days, probably because the authorities were “convinced” that it was an essential staple. The close-down occurred after media exposé.
Prohibition, as a policy, has received wide support from women in particular, since they have to endure the painful impact of the men in their families, violently squandering hard-earned money on vile intoxication. However, the other dimension: it has boosted bootlegging. In the late 1990s, when Bansi Lal was the Haryana Chief Minister, he introduced Prohibition. However, anti-social elements took advantage of the situation, starting home-supply of the beverage. When Prohibition was lifted, it led to a sudden spurt in criminal activity by these hardened elements—in a state, which was once the safest to drive through—at any hour of the day or night. In Gujarat, liquor is officially banned, but is available at a premium, via middlemen in hotels and restaurants.
If the stoppage of the sale of liquor has not resulted in the rise of moonshining, it essentially is because the bootleggers had no time to procure/produce their brew, following the no-notice sudden lockdown. Things would have taken a different course—with reports of blinding or deaths, due to the consumption of hooch, sharing near equal space with patients of Covid-19.
In all likelihood, the government may extend the containment beyond May 3. However, at the same time there is an identical necessity to pay undivided attention to the economy and various essential services that are not included in the official list. To begin with, outlets providing electrical goods, plumbing equipment, stationary and everyday living essentials, that are part of the common man’s life, must be open for a limited number of hours.
Undoubtedly, at many junctures, the lockdown was of prime importance, but as of now, a reassessment is required, based on accurate figures. It is the economy that needs to be resuscitated. Between us.
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