Liquor Revenue Uptrend

The latest excise revenue figures placed before the Jammu and Kashmir Legislative Assembly present a clear picture of steady fiscal performance achieved without expanding the liquor retail network. At a time when excise policy often attracts strong public debate, the government’s decision not to open new wine shops in the financial year 2026–27 reflects a cautious and measured approach that seeks to balance revenue needs with regulatory and social considerations.

According to the official data shared by the Finance Department, excise revenue from existing wine shops has shown a consistent upward trend across the Union Territory over the last two financial years. Jammu district has emerged as the leading contributor, generating ₹48,350.15 lakh in 2023–24, which rose further to ₹50,913.93 lakh in 2024–25. This growth underscores Jammu’s position as a major economic and commercial hub, where higher population density and purchasing power translate into stronger excise collections. Other districts in the Jammu division have also recorded steady increases. Udhampur generated ₹11,322 lakh in 2023–24 and ₹12,061.50 lakh in 2024–25. Kathua’s excise revenue rose from ₹10,653 lakh to ₹11,272 lakh during the same period, while Samba reported collections of ₹9,138.06 lakh in 2023–24 and ₹9,740.15 lakh in 2024–25. Reasi contributed ₹3,371 lakh and ₹3,450.50 lakh, reflecting modest but stable growth. Smaller districts, too, showed incremental gains. Doda recorded ₹2,353.61 lakh in 2023–24 and ₹2,448.17 lakh in 2024–25. Kishtwar’s collections increased from ₹1,681.90 lakh to ₹1,887.59 lakh, while Ramban generated ₹2,299.95 lakh and ₹2,476.70 lakh across the two years. Rajouri reported ₹4,806.19 lakh in 2023–24 and ₹5,336.96 lakh in 2024–25, and Poonch saw revenues rise from ₹1,497.78 lakh to ₹1,768.92 lakh. In the Kashmir division, Srinagar led excise revenue generation, registering ₹5,489.67 lakh in 2023–24, which increased significantly to ₹6,557.66 lakh in 2024–25. Other districts also reflected gradual improvement. Anantnag’s collections rose from ₹1,403.50 lakh to ₹1,999.50 lakh, Baramulla from ₹872.23 lakh to ₹1,139.84 lakh, Kupwara from ₹415.66 lakh to ₹442.96 lakh, and Ganderbal from ₹223.45 lakh to ₹319.69 lakh. Taken together, these figures suggest that excise revenue growth has been broad-based rather than concentrated in a single pocket. Importantly, this growth has occurred without any increase in the number of wine shops. The government has categorically stated that no new JKEL-2 liquor licenses are proposed for 2026–27, signaling an emphasis on consolidation rather than expansion. From a public finance perspective, this approach indicates confidence in the existing licensing and enforcement framework. Improved compliance, better monitoring, and efficient collection mechanisms appear to be contributing to higher revenues without widening the retail footprint. Such a strategy allows the administration to strengthen its non-tax revenue base while remaining sensitive to social concerns often associated with alcohol availability. The government has also addressed questions regarding transparency in licensing. It has clarified that no complaints related to benami liquor licences have been received and that all licenses are issued strictly to Jammu and Kashmir domiciles in accordance with the Excise Act, 1958, and the excise policies notified from time to time. This emphasis on domicile-based licensing and adherence to statutory norms reinforces accountability and public confidence in excise governance.

Overall, the excise revenue data reflects a pattern of stable and predictable growth achieved through administrative discipline rather than policy expansion. In a region where fiscal pressures are significant and a large share of expenditure is committed to salaries, pensions, and debt servicing, such dependable revenue streams are important. The current approach suggests that careful calibration of excise policy, supported by transparency and compliance, can sustain revenues while maintaining regulatory restraint and social balance. Further, the government must move beyond cautious statements and adopt a firm, accountable, and result-driven excise governance framework that puts public interest at the center. Revenue generation cannot be allowed to overshadow rising social concerns linked to alcohol misuse. Strict monitoring, transparent licensing, and zero tolerance for violations must become non-negotiable. A defined share of excise revenue should be mandatorily invested in public healthcare, de-addiction programs, and youth protection initiatives. Regular district-level social impact audits should be made public to ensure accountability. The administration must demonstrate that fiscal gains will never come at the cost of social stability, public health or community well-being.