Possibility of wholesale liquor corporation to be explored

To boost revenue and end monopolistic practices in liquor trade, Punjab Chief Minister Captain Amarinder Singh today directed the state excise department to explore the possibility of setting up a wholesale liquor corporation for its distribution.
The decision was taken at the first meeting of the cabinet sub-committee on finance, set up to regularly review the cash-strapped state's fiscal situation.
The sub-committee is headed by the chief minister and has Brahm Mohindra, Minister for Health and Family Welfare, Research and Medical Education, Parliamentary Affairs, and Manpreet Badal, Minister for Finance as members, said an official release.
The sub-committee has been tasked with finding ways of curtailing expenditure and mobilising resources.

Chairing the maiden meeting today, the CM asked the excise department to check the feasibility of government intervention in the liquor trade, which is currently completely controlled by private players in the state.
He asked the department to work out the modalities for developing a corporation for wholesale distribution of liquor.

The department earlier made a presentation to the sub- committee explaining the existing value chain in the liquor trade and also highlighting the model followed by other states, including Haryana, Tamil Nadu, Kerala and Rajasthan, an official spokesperson said.
A move to shift to a multi-year liquor policy from the prevailing one-year policy was also discussed by the sub- committee, which instructed the excise department to submit a detailed proposal.

The chief minister also sought a proposal on restructuring of the excise and taxation departments to ensure more focused administration of commercial taxes and excise with infusion of greater technology and specialisation.
He said it was important for various departments to come out with innovative ways to generate revenue for the state, which has inherited a debt burden of Rs 2,08,000 crore from the previous SAD-BJP government.
The excise department has been asked to take steps to significantly raise its revenue generation targets over the next three years.
With a fiscal deficit of about Rs 34,000 crore and revenue deficit of Rs 13,000 crore, the Congress government in the state is battling a major challenge as it strives to combat the fiscal crisis.

Prominent amongst those present in the meeting included Brahm Mohindra, Manpreet Singh Badal, CM's media advisor Raveen Thukral, Chairman of the Punjab Governance Reforms and Ethics Commission K R Lakhanpal.