Bihar's Alcohol Ban Lost Rs 20,000 Crore Every Year - Here's How Other States Are Getting Rich

Simple Question: Should Bihar Copy What UP and MP Are Doing?

Bihar banned alcohol 10 years ago. The state government said it was good for society. But there's a big problem—Bihar lost Rs 20,000 to 28,000 crore every year because of this ban.

Meanwhile, look at what neighboring states are earning:

How Much Money Are Other States Making?

1. Uttar Pradesh: Rs 51,000 crore in 2024-25. This amount doubled in just six years. UP now earns the highest alcohol revenue in all of India.
2. Madhya Pradesh: Rs 15,258 crore in 2024-25—a record high. MP is aggressively expanding its liquor business.
3. Delhi NCR: Rs 6,061 crore in the first nine months of 2024-25 alone. Revenue grew by 12-13% compared to the previous year.
4. Jharkhand: Around Rs 2,700-4,000 crore. Jharkhand recently allowed private companies to open liquor shops, which increased sales.
5. Chhattisgarh: About Rs 5,000-8,000 crore. They even reduced taxes to stop illegal smuggling.
6. Bihar: Rs 0 (Zero)

Before the 2016 ban, Bihar earned Rs 3,142 crore from alcohol sales. After the ban—nothing.

Where Does This Money Come From?

When a state allows legal alcohol sales, the government gets money through:

1. Excise duty (main tax on alcohol)
2. License fees from liquor shops
3. Auction bids from big wholesalers

UP earns Rs 51,000 crore mainly because it has no restriction on alcohol shops. In cities, there are liquor stores every few kilometers.

Madhya Pradesh is earning record amounts because they reduced taxes on foreign liquor to attract more businesses. More sales = more revenue.

What Could Bihar Do With This Money?

If Bihar had earned just Rs 10,000 crore like other medium-sized states, it could have:

1. Built 5,000 new schools
2. Paid salaries for 50,000 teachers and doctors
3. Fixed all broken roads in the state
4. Improved water supply in 500 villages
5. But instead, Bihar gets nothing.

The Corruption Problem

The lost money created another problem—the illegal liquor trade. Because legal alcohol is banned, a black market worth Rs 30,000 crore has grown.

This illegal market:

1. Creates jobs for criminals, not taxpayers
2. Brings no money to the government
3. It is completely uncontrolled and dangerous
4. Causes deaths from poisonous alcohol

A bootlegger explained: "When alcohol is banned, only thieves profit. Police take Rs 10,000 bribes, and liquor trucks run freely. If Bihar had legal shops, the government would make this money instead".

What Economists Say

Dr. Rajesh Kumar, Economics Professor: "Bihar's ban is killing the state's economy. While UP invested its alcohol revenue in infrastructure, Bihar invested in nothing. Today, UP has better roads, schools, and hospitals".

NIPFP (National Institute of Public Finance) Report: States that earn alcohol revenue can use it for public welfare. But states with bans fall behind because they lose this money without getting any benefits.

Neighboring States Are Pulling Ahead

Because UP, MP, and Jharkhand allow alcohol:

1. They have more government money for development
2. They have more jobs in the liquor business
3. They attract more businesses and investors
4. Their cities look more developed

Meanwhile, Bihar is losing money while still facing the problem of illegal alcohol. It's the worst of both worlds.

What Does This Mean for Tier 3 Cities?

In cities like Darbhanga, Muzaffarpur, Gaya, and Bhagalpur, schools need better buildings, roads need repair, and hospitals need equipment. This money (Rs 20,000 crore) could have changed these cities.

Instead, that money goes to:

1. UP's better infrastructure
2. Jharkhand's development projects
3. Madhya Pradesh's investments

Bihar falls further behind.

Simple Question

If prohibition was supposed to make Bihar better, why are neighboring states—which allow alcohol—doing better economically?

The answer is clear: A ban that doesn't work creates only losses and corruption—with no benefits.