EXCISE POLICIES AND SOCIO-ECONOMIC DEVELOPMENT IN CHHATTISGARH: A CRITICAL REVIEW OF FISCAL CONTRIBUTIONS, DEVELOPMENTAL OUTCOMES, AND POLICY CHALLENGES

Abstract

The growing importance of state-level fiscal autonomy in India has enhanced the significance of excise taxation as a major source of public revenue. Following the implementation of the Goods and Services Tax (GST), excise duties on alcoholic beverages remained under the jurisdiction of state governments, thereby increasing their importance in state finances. Chhattisgarh has emerged as one of the states where excise revenue constitutes a substantial component of own-tax revenue. The present review paper critically examines the contribution of excise policies to socio-economic development in Chhattisgarh through an analysis of secondary data, government reports, budget documents, and published literature. The study evaluates the relationship between excise revenue generation and developmental outcomes such as infrastructure creation, healthcare financing, educational expenditure, fiscal sustainability, and public welfare. The findings reveal that excise revenue has become a significant instrument of resource mobilization and developmental financing. State excise revenue increased from ₹6,783 crore in 2022–23 to ₹11,000 crore in the 2024–25 budget estimates, highlighting its growing fiscal significance. However, the review also identifies challenges related to public health, social costs of alcohol consumption, illicit liquor trade, and ethical concerns associated with dependence on alcohol-generated revenue. The study concludes that while excise policies have strengthened fiscal capacity and developmental expenditure, a balanced policy framework integrating revenue objectives with social welfare considerations is necessary for sustainable development.