In a bombshell revelation, the Comptroller and Auditor General (CAG) of India has uncovered a massive Rs 2,002 crore revenue shortfall linked to the liquor policy implemented by the Aam Aadmi Party (AAP) in Delhi. The report, which examines the financial implications of the policy, criticizes the Delhi government for its failure to properly regulate and oversee the liquor industry after privatizing it.
The AAP government had hoped to generate significant revenue from liquor sales by granting licenses to private retailers, who would pay the government a fixed excise fee. This was expected to replace the previously government-run liquor shops, and, according to proponents of the policy, it would lead to increased transparency and greater financial gains. Unfortunately, the policy has fallen short of expectations, with the CAG report citing numerous issues contributing to the revenue loss.
These issues range from ineffective tax collection systems to the rise of illegal liquor trade, both of which have hampered the Delhi government’s ability to reap the financial benefits it had envisioned. With the private sector now controlling a large part of liquor distribution in the city, the government has been unable to properly audit transactions or ensure that taxes were being paid accurately.
Critics of the policy have called for a reevaluation of the approach, citing that the revenue losses may have long-term consequences for Delhi’s economy. The AAP government, however, insists that the policy was always meant to serve the broader goal of modernizing the liquor sector in the city and reducing inefficiency in state-run stores.
