Liquor rates hiked: Telangana Govt hopes for revenue growth

The Congress-led Telangana government has approved a sharp hike in liquor prices, including a new Special Excise Cess (SEC) of Rs 10 per 180 ml bottle, effective May 18. Aimed at boosting state revenue amid fiscal challenges, the move is expected to generate an additional Rs 3,600 crore this year. However, it has sparked a political firestorm, with senior BRS leader T. Harish Rao slamming Chief Minister A. Revanth Reddy for what he calls “double standards”.

Government bets on liquor to plug revenue gap

The latest hike follows a 15% increase in beer prices last month, targeting mid-range and premium segments. Liquor bottles priced above Rs 500 are now set to see at least a 10% price rise. With dipping GST collections and falling revenues from stamps and registrations, the state government is relying heavily on excise collections.

The 2025–26 budget projects Rs 50,000 crore in excise revenue, up from Rs 40,000 crore recorded in 2024—a record for Telangana.

Revanth Reddy’s “double standards”

BRS leader Harish Rao has launched a blistering attack on the Congress government, accusing it of betraying pre-election promises. Rao reminded the public that Revanth Reddy had, while in opposition, condemned the BRS for turning Telangana into a “tagubotula rastram” (state of drunkards), vowing to regulate liquor flow and shut down belt shops.

“Now the same government is encouraging overconsumption, approving over 100 microbreweries every 30 km and pressuring excise officials to meet liquor sales targets,” Rao said in a press statement.

“Beers, Bars and Broken Promises”

“Is this the ‘Telangana Rising’ you promised?” Harish Rao questioned. “Running the state on beers and bars while failing to deliver on governance?” He alleged that the Congress government has discontinued key welfare schemes and failed to create alternative revenue sources, instead resorting to “burdening families and youth” through liquor sales.

Rao further criticized the state’s poor financial management, pointing to a mere 5.5% GST growth—far below the projected 20%—as a sign of economic misgovernance.

In response, Excise Minister Jupally Krishna Rao asserted that price revisions are being guided by a Price Fixation Committee headed by a retired High Court judge.

With a projected Rs 5,000 crore shortfall in tax devolution and continued financial pressure, the government’s increasing reliance on liquor revenue may invite further scrutiny.