Ambitious Jagan’s Massive Risk with Liquor Ban

Liquor Prohibition is the biggest Promise of Chief Minister YS Jagan Mohan Reddy’s Manifesto. Liquor Sale is the biggest revenue source for the state besides Petroleum Products. So, the Prohibition will take a severe toll on the state finances which are already complicated due to the Bifurcation.

But Jagan is confident of executing it in phases so that the liquor is served only in Five Star Hotels by the time of next elections. Rumors are rife about what Jagan is going to do. There is a buzz that the government will shut down 1000 Liquor Shops from July 1st when the new liquor policy comes into effect.

As of now, there are 4380 Liquor Shops in Andhra Pradesh and they bring around 16000 Crore Revenue to the State. Jagan is contemplating to close down 25% of them. At the same time, the government will increase the License Rates of the rest of the shops so as not to lose the revenue due to this closure.

If not implemented properly, this will be a big mistake. Liquor ban never succeeded in any of the states. Will just open up too many illegal means and what is worse the Government will lose a major source of revenue. Blackmarketing if happens will vanish all the good work of the government. This will be a challenge to Jagan in the next five years.