Why states are unwilling to take lessons from Delhi liquor excise saga

The controversy in Delhi reflects the enduring importance of this revenue source for state exchequers

This report has been updated to incorporate a clarification by the Madhya Pradesh government.

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Investigations into how liquor is sold in Delhi state has led to Deputy Chief Minister Manish Sisodia being raided by the Central Bureau of Investigation last week. Delhi’s lieutenant governor has transferred 12 state government officers for alleged graft.

In FY22, Delhi had changed its excise policy, claiming it would generate at least 15 per cent more revenue than the receipts of FY18 of Rs 6,309 crore. In the first quarter of FY23, the Delhi government claimed liquor revenue had risen by Rs 1,484 crore