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Prohibition has helped Bihar save Rs 5,280 cr per year, claims state government

State govt report shows savings of at least Rs 440 crore per month, economists sceptical

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Bihar is saving at least Rs 440 crore every month since the enforcement of total prohibition in the state. This translates to Rs 5,280 crore annually and adds up to a total of Rs 10,560 crore for the cash-strapped state, as it will mark the second anniversary of liquor ban on April 5, 2018.

The figures were shared by the government of Bihar in the Economic Survey 2017-18, which gives an overview of the state's economic progress as well as the achievements of the social programmes undertaken by them.

Survey's chapter relating to the impact of prohibition takes into account studies undertaken by the Asian Development Research Institute (ADRI) and Development Management Institute (DMI), both based in Patna.

What is interesting is how the Rs 440 crore monthly saving figures have been calculated. According to the report, ADRI has taken into consideration 2011 figures, when there were around 44 lakh alcoholics in the state. "Even by most conservative estimate, each of these drinkers spent Rs 1,000 on alcohol every month. On this basis, there was a saving of at least Rs 440 crore every month and Rs 5,280 crore in a year," claims the report.

Highlighting the "gains of prohibition", the survey report said the money saved by not consuming liquor was spent on consumer goods, especially edibles and household goods. "While the consumption of honey and cheese has upped by 380% and 200% respectively, sweets such as "gulab jamun" and "rosogulla" have seen around 15% increase. The sale of expensive dress materials and sarees has upped by around 1,000% while four-wheeler and two-wheeler sales increased by around 30%," it says.

Economists though are sceptical about "the basis on which not drinking liquor has been linked with saving money or spending it on other goods." "Is it just guesswork as no solid evidence is given to suggest that money saved by not consuming alcohol was spent on other goods? The sale of consumer goods may have gone up even without prohibition," says a Patna-based economist, not wishing to be identified.

The DMI study claims a dip in the crime graph post prohibition in Bihar. "Violence against women and children have decreased significantly. Around 58% women said they received more respect and role in decision making while neighbourhood brawls decreased by over 85%," says the report claiming that "prohibition has come as a boon for economically vulnerable population in the society."

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