Uttar Pradesh govt sets ₹60,000 cr excise revenue target for FY26

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The Uttar Pradesh government has set an excise revenue target of Rs 60,000 crore for the financial year 2025-26 (FY26), according to the state’s Finance Minister Suresh Khanna.

 

For the current financial year, the Yogi Adityanath-led government aimed for Rs 58,000 crore in excise revenue. However, collection in the first three quarters reached only about Rs 31,000 crore, Khanna said. In the previous years, revenue stood at Rs 41,250 crore in FY23 and Rs 47,600 crore in FY24.  

 

The state’s new excise policy has introduced an e-lottery system for allotting liquor, beer, and wine shops. Existing license holders will have the option of renewal via e-lottery in FY27. The Cabinet recently approved these proposals.

 

The policy also aims to boost farm incomes by promoting the use of horticultural produce in wineries. The government expects that increased fruit sales for wine production would benefit rural farmers and stimulate the hinterland economy.

 

State liquor manufacturers have welcomed the new policy and urged local bodies to allocate larger spaces for composite shops to sell beer and wine. However, the policy prohibits premium liquor outlets in malls and multiplexes. Such outlets will only be allowed at airports, metro stations, and railway stations with local authority approval.

 

To achieve its revenue target, the government plans to plug tax leakages, clamp down on illicit liquor trade, and prevent smuggling, which impact both legitimate businesses and the state exchequer.

 

In addition to liquor excise revenue, the government also earns from ethanol sales. Uttar Pradesh is India’s leading ethanol producer, with the sugar byproduct being used in medicines, chemicals, and liquor, as well as for fuel blending. Increased ethanol production supports sugarcane farmers with timely payments and helps reduce the country’s oil import bill by supplying domestically produced ethanol to oil marketing companies.