Click to play videoBangalore: The Karnataka government has banned arrack. But it’s remained to be seen, how will the government cope up with this huge loss in revenue because of this ban.
For Hema and thousands of women like her across Karnataka, this year's state budget is an answer to their prayers and a result of years of struggle.
The government has banned arrack, seen by many as a populist move to appease rural women voters.
“We are taking this hard decision for the welfare of the poor people,” said Karntaka Chief Minister H D Kumraswamy.
The state government earns more than Rs 3,000 crore annually as revenue from the sale of arrack. So how is the government going to offset this huge loss?
“The Finance Minister has already worked out how to compensate for the losses because of this ban,” assured Kumaraswamy.
For the state Finance Minister B S Yediruppa the budget was a tightrope walk, as he had to fulfill the Chief Minister's promises while keeping in mind the requirements of the delicate coalition. He has managed to effectively handle both.
Yediruppa also announced a ban on all forms of lottery in the state and waived off the interest on farm loans paid before March 31.
This is being called the populist budget – one that was made keeping certain sections of the electorate in mind.
But the litmus test of the government will be to gauge the efficacy of both the arrack and lottery ban in the state.
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