# NCAER urges Bihar to lift liquor ban for development funds

2026-08-07T23:41:38+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

A new paper from the National Council of Applied Economic Research (NCAER) proposes lifting Bihar's prohibition to generate resources for development and capital expenditure. Led by economist Ratna Sahay, the study says ending the ban could increase state tax revenue by 14-15% while cutting enforcement costs. It argues that prohibition has not reduced crimes against women and has instead shifted consumption to illegal alcohol and drugs. The paper notes a significant rise in illicit liquor trade and the use of alternative intoxicants. It praises Chief Minister Nitish Kumar for improving law and order but says Bihar lags in revenue mobilisation and depends heavily on central transfers. The researchers also called for more central funds for flood control and identified education, health, and governance as priority areas. Bihar's debt stands at 39% of state GDP, higher than most states.

## Coverage

- timesofindia.indiatimes.com <https://timesofindia.indiatimes.com/india/ncaer-bihar-booze-ban-hasnt-worked-lift-it-fund-development-work/articleshow/133044141.cms>

Tags: alcohol prohibition, Bihar, crime against women, illicit liquor, NCAER, tax revenue
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