NCAER research says Bihar booze ban hasn't worked; lift it, fund development work

A recent study conducted by the NCAER suggests that lifting the liquor ban in Bihar could generate resources for development purposes. The paper, led by economists including Ratna Sahay, argues that prohibition has not effectively reduced crimes against women. Instead, it has led to an increase in the consumption of illegal alcohol and drugs. The lifting of prohibition, according to the paper, could boost the state's tax revenue by 14-15% while simultaneously reducing the expenditure on enforcement.

The study also emphasizes the need for more central transfers to the state to aid in flood-control activities. Despite the promise of prohibition, Nitish Kumar's leadership in Bihar was credited for restoring law and order and propelling the state towards development. However, the state still lags behind in terms of revenue generation and continues to rely on central transfers for its financial needs.

The paper identifies six key areas of focus for Bihar: education, health, governance and law, recurrent floods and disasters, the lack of private sector, and gender discrimination and violence. It suggests increasing capital expenditure, reducing subsidies, and raising resources, both from the state and the central government. The paper acknowledges that Bihar's debt burden, at 39% of its GDP, is higher than other states, with the exception of Punjab and Bengal.

To attain its goals, the paper recommends more capital expenditure, lower subsidies, and more financial support from the central government.