Revenue from excise on a high, likely to cross Telangana government’s Rs 17,000 crore estimate

HYDERABAD: The Telangana government was not ambitious when it estimated the revenue target of Rs 17,000 crore from the Excise department for the year 2021-22. Statistical analysis suggests that if all goes well, it is likely to cross the target of Rs 17,000 crore. 

In FY 2014-15, the State government generated Rs 2,823.54 crore as revenue from the Excise department. Since then, the figure has constantly risen. In fact, the Excise revenue has quadrupled twice since the formation of the State. The government till January 2020-21, registered an excise revenue over Rs 11,443.50 crore. The shortfall was because wine shops in the State remained closed for 45 days during the lockdown and bars remained closed until 90 days. 

The revenue that the State generated in FY 2019-20 from excise duty was a lot more than the grant in aid, i.e: Rs 11,598.42 cr from the Central government. Currently, the State’s revenue from the sale of liquor is higher than the annual budget of many north-eastern states.