Maharashtra Hikes Liquor Duty Amid Challenge To Sustain Ladki BahinScheme

Amid the challenge to sustain its flagship Ladki Bahin scheme, the Maharashtra government has increased the excise duty on liquor. The move will help the Chief Minister Devendra Fadnavis-led government generate Rs 14,000 crore annually.

The hike will be on the Indian Made Foreign Liquor (IMFL), country liquor and imported alcohol. A new category, Maharashtra Made Liquor (MML), has also been approved by the Cabinet. The prices of the IMFL and premium foreign liquor brands are also likely to increase by 50 per cent.

The excise duty on IMFL has been increased nearly five times the manufacturing cost, specifically affecting products with a manufacturing cost of Rs 260 per bulk litre. The duty on country liquor has also gone up from Rs 180 to Rs 205 per proof litre.

The state government, which had promised to increase the funds under the Ladki Bahin scheme, is struggling to sustain its flagship scheme amid the financial burden. Under the Mukhyamantri Majhi Ladki Bahin Yojana, a monthly assistance of Rs 1,500 is given to eligible women in the state.

Deputy Chief Minister and Finance Minister Ajit Pawar has said that the increment will be implemented as the government gets financially stable.

Opposition, however, continues to target the ruling Mahayuti alliance, which comprises the BJP, Eknath Shinde-led Shiv Sena, and the Ajit Pawar-led NCP, for not fulfilling the election promise and the delay in disbursement of instalments.

The scheme had turned out to be the game changer in the 2024 Maharashtra assembly elections, in which the Mahayuti registered a landslide victory. 

More than 2.5 crores women have enrolled in the scheme, but the verification after the elections led to the removal of over 9 lakhs beneficiaries. During a recent verification by the Women and Child Development Department, which implements the scheme, it was found that 2,289 government employees were taking the benefit. Their names were then removed.

The flagship scheme had also created a rift in the government over the issue of fund diversion. Sanjay Shirsat, the Minister of Social Justice Department from Shiv Sena, had openly criticised the Finance department for diverting funds of his department to pay the instalments of the scheme.