Chief Minister Siddaramaiah's 2025-26 Budget has set an ambitious excise revenue target of ₹40,000 crore, up from the ₹36,500 crore anticipated by the end of the current fiscal year. This significant increase has prompted discussions among lawmakers regarding the implications for the state's populace.
Senior Janata Dal legislator M.T. Krishnappa, representing Turuvekere, voiced concerns over the impact of rising excise taxes on the working class. He highlighted that the government had increased excise taxes three times within a single year, disproportionately affecting the poor. Krishnappa argued that while the government provides benefits such as ₹2,000 per month to women, free electricity, and free bus travel, men, particularly those in the labor sector who consume alcohol, are overlooked.
"We can't stop people from drinking, especially the labor class. At their cost, you're giving ₹2,000 per month to women, free electricity, and free bus travel. That's our money anyway. So, to those who drink, give them two bottles of liquor free every week. Let them drink. How can we give them money every month?" Krishnappa suggested, proposing that the government could distribute liquor through societies.
This proposal was met with immediate opposition from members of the ruling party. Energy Minister K.J. George dismissed the idea, retorting, "Win the election, form the government, and do this. We're trying to make people drink less." Speaker U.T. Khader also expressed reservations, stating, "Without giving two bottles, we are already struggling. What will happen if we give them liquor for free?"
The debate took a further turn when Congress legislator B.R. Patil from Aland called for total prohibition in the state. Labeling excise revenue as "sin money," Patil argued that such funds, extracted from the poor, cannot contribute to nation-building. He urged the central government to implement nationwide prohibition, echoing Mahatma Gandhi's sentiment that liquor should be banned if he were a dictator for even two hours.
Deputy Leader of the Opposition Arvind Bellad raised concerns over Karnataka's increasing dependence on excise revenue. He pointed out that while women receive ₹2,000 monthly under the Gruha Lakshmi scheme, amounting to an outlay of ₹28,608 crore, the state recovers ₹36,000 crore through excise revenue. Bellad questioned the sustainability of such reliance on liquor sales and cited Bihar as an example of a state functioning without excise revenue.
In response, IT/BT Minister Priyank Kharge challenged the opposition's stance, suggesting that they lacked the moral authority to critique the government's policies unless they actively advocated for prohibition. He dared the opposition to move a resolution seeking prohibition, questioning who was stopping them from doing so.
The discussions in the Assembly reflect the broader societal debate on balancing revenue generation through excise duties and addressing the social implications of alcohol consumption. While some legislators argue for accommodating the drinking habits of certain demographics, others emphasize the ethical considerations and potential harm associated with alcohol use.
The government's welfare initiatives, such as the Gruha Lakshmi scheme, aim to empower women by providing financial assistance. However, critics argue that the benefits are offset by the revenue generated from alcohol sales, predominantly consumed by men, leading to a cyclical economic dynamic that may not effectively uplift the intended beneficiaries.