NCAER research says Bihar booze ban hasn't worked; lift it, fund development work
A new NCAER research paper argues that Bihar's liquor prohibition policy has failed to reduce crime and should be lifted to boost tax revenue. The report suggests that the state's fiscal health is suffering and that funds should be redirected toward development and infrastructure.
Why it matters
The findings challenge a signature policy of the Bihar government, highlighting the economic trade-offs of social prohibition policies.
NEW DELHI: A new paper by NCAER has proposed lifting prohibition in Bihar to generate resources for financing development and capital expenditure. It argued prohibition has not reduced crime against women and legal drinking has shifted to the consumption of illegal alcohol and drugs.The paper by a team of economists led by Ratna Sahay said an end to prohibition can help the state increase its tax revenue by 14-15% while reducing expenditure on enforcement. It also argued for more central transfers to states to help meet flood-control activities."Overall, available evidence doesn't indicate a broad-based reduction in crimes against women following prohibition. At the same time, the prohibition regime has been accompanied by concerns regarding expansion of illicit liquor trade, increased enforcement challenges and corruption, and the growing use of alternative intoxicants, including illicit drugs," the paper said, while noting a significant rise in illegal liquor trade.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in