Punjab eyes Rs 1,000 cr extra revenue from liquor biz

Punjab government is looking to raise extra revenue of Rs 1,000 crore from liquor business in the next financial year, state's finance minister Manpreet Singh Badal said today.
"We are working with the stakeholders. We are aiming at 20 per cent increase (in revenue from excise). Though the excise policy (for 2018-19) is not yet out, we are hopeful of raising revenue from it," Badal said.
"Our focus will be if we can raise extra revenue... between Rs 800-1,000 crore," he said.
Punjab had projected revenue generation of Rs 5,422 crore from the state excise for the current fiscal. The revenue from liquor business constitutes almost 14 per cent of state's own tax revenue.

The Punjab government had earlier proposed to set up a wholesale liquor corporation for liquor distribution to boost revenue and end monopolistic practices in the liquor trade, which is currently completely controlled by private players in the state.
Badal also said the focus of the state budget for 2018-19, which is expected to be presented next month, would be on fiscal consolidation and the government would be able to generate Rs 5,000 crore through cost-cutting and extra revenue generation.

"We want that our expenses should not be more than our revenue. Our medium term goal is to be revenue neutral in the fourth year," he said while emphasizing on saving money through reducing unproductive expenditure.

The finance minister also said the aim is to bring down the losses incurred on account of money spent on the transportation, labour charges, gunny bags etc in foodgrain procurement.
"Our losses from foodgrain are at present Rs 1,800 crore and we are aiming to save Rs 600 crore this year," he said.
Badal said the state government would approach the Centre for reimbursement of the actual expenditure on account of transportation, labour, handling etc for foodgrain.
Punjab government is also betting big on mining sector for additional revenue generation.
"I am looking at raising Rs 600 crore from mining as against miniscule revenue generated during previous regime. Mining has the potential to generate revenue of Rs 1,500 to 2,000 crore," he said.

"Through such steps, we may generate Rs 5,000 crore in next fiscal," Manpreet said.
In its budget last year, Punjab government had projected revenue deficit at Rs 14,784.87 crore for the current fiscal as against Rs 11,362.02 crore for the previous fiscal.
Badal also said a meeting of an interstate council of the northern zone including Punjab, Haryana, Delhi, Himachal Pradesh and UT Chandigarh will be held either before GST council meeting or on the sidelines of that meeting.
The interstate council meeting would discuss uniformity in taxation on petroleum products, motor vehicle registration tax and tourism promotion.