BRS and BJP question Telangana Govt for excess dependence on Excise revenue, demand closure of belt shops

BRS and BJP MLAs point that Telangana Government heavily relies on liquor sales for revenue, sparking debate in Legislative Assembly over fiscal strategy.

Excess dependence of the Telangana Government on revenue from Excise duties, primarily sale of liquor, has come to the fore yet again.

The issue figured during the discussion on demands for grants in the Legislative Assembly on Tuesday (March 25, 2025) with Bharat Rashtra Samithi (BRS) member Vemula Prashanth Reddy alleging that the State Government has targeted to raise ₹50,000 crore, ₹12,000 crore higher than the current year (2024-25), through Excise duties. The Treasury Benches, however, dismissed the charge claiming that the government had resolved to check pilferages and arrest leakage in the Excise revenue for realising the targeted revenue.

Mr. Prashanth Reddy demanded that the government close “belt shops” (outlets not paying the prescribed fee). BJP member Dhanpal Surynarayana expressed concern over the government’s dependence on revenue through liquor claiming it was proposed to raise 16% of the total revenue through Excise duties alone. “The government’s slogan is Telangana Rising. The State is indeed rising in liquor sale and availability of drugs, ganja and other prohibited substances,” he said.

Excise Minister Jupally Krishna Rao alleged that the BRS Government had, in fact, allowed proliferation of the belt shops during its regime as it depended heavily on liquor sale for generating revenue. This could be seen from the fact that revenue through Excise duties which was pegged at ₹9,000 crore in 2014-15 increased significantly to ₹34,000 crore at the end of 2022-23 showing ₹25,000 crore rise.

“Revenue through Excise duties was pegged at ₹39,000 crore in the last year of the BRS rule. Who is responsible for nearly 400% growth in revenues? The previous Government hiked taxes and duties to mop up revenue,” he said.

Revenue through liquor sale had in fact come down since the Congress took over the reins. The government had focussed on curbing sale of non duty paid liquor and took steps to avoid scope for pilferage. Accordingly, CCTV cameras were installed at the delivery points and border check-posts were strengthened while steps were taken to keep a vigil on the quantity that was being produced by the distilleries.

Minister D. Sridhar Babu said proliferation of belt shops was part of the BRS government’s policy and the Congress government took steps to curb such practices. “The BRS rule has ensured that liquor was available in the PDS shops too,” he said.