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Kerala liquor ban based on fuzzy logic, to benefit other states

The biggest contributor to sales tax, would hit the state hard at a time of deep fiscal crisis

THIRUVANANTHAPURAM: The Kerala Public Expenditure Review Committee has questioned the rationale of the state government’s liquor policy and suggested that the policy was as fuzzy as the thinking of a man who was intoxicated.

In its fourth and final report, the KPERC stated that the policy, instead of weaning men away from the scourge of liquor, will only help to fill the coffers of neighbouring states like

Tamil Nadu and Karnataka. The Committee then recommended a targeted cash transfer scheme, modelled on Brazil’s ‘Bolsa Familia’ scheme, as a more realistic way to beat the social ills of alcohol.

The KPERC noted that falling revenues from IMFL, the biggest contributor to sales tax, would hit the state hard at a time of deep fiscal crisis.

“When the government coffers are emptied and dried, it is to the Beverages Corporation alone that it can turn to,” said Ms Mary George, KPERC member.

The KPERC, therefore, called for an alternative policy that will improve revenues but will insulate the state from the ills of excessive consumption.

“A long-term liquor policy may be evolved at the earliest after taking into account the fact that what is lost to this state in the form of liquor revenue will be gained by the neighbouring states, with the gain of only minimum anti-liquor effect among the citizens of the state,” the KPERC report stated. Ms George said that the excise revenue of Karnataka and Tamil Nadu had shown a surge when A K Antony imposed arrack ban in the state in 1996.

As to if the government argued that it wanted to save women from drunkard husbands to be the main logic behind the policy, Ms George said that a realistic way was to empower poor women. KPERC mooted a cash transfer scheme on the lines of Bolsa Familia. Under this Brazilian scheme, welfare funds are transferred directly to the women by the banks.

They can withdraw the money using a card but will have to satisfy certain conditions: they should subject themselves to regular health checks, provide certain standards of nutrition for their children and send them to school.

( Source : deccan chronicle )
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