In a significant move during the budget announcement, Karnataka Chief Minister Siddaramaiah, led by the Congress government, unveiled measures that will directly affect the state's liquor industry. The Budget 2023-2024 includes a 20 per cent hike in the existing rates of Additional Excise Duty on Indian Made Foreign Liquor (IMFL) across all 18 slabs.


Karnataka CM siddaramaiah presenting Budget 2023
Karnataka CM presenting Budget 2023.



An excise duty is an indirect tax imposed on the manufacture, sale or distribution of goods in a particular jurisdiction. In terms of the liquor industry, excise duty is levied on alcoholic beverages including Indian Made Foreign Liquor (IMFL) and beer. It is an important source of revenue for the government and also serves as a regulatory mechanism to control alcohol consumption.


The increased excise duty on beer is also significant, as it will see an increase from 175 percent to 185 percent. These measures aim to strike a balance between generating revenue for the government and addressing social issues surrounding alcoholism.


However, the budget presentation was not only focused on financial matters. The Chief Minister took the opportunity to emphasize the government's commitment to maintain law and order and tackle social problems. In particular, Siddaramaiah promised to crack down on moral policing and prevent any attempts to disrupt communal harmony. In the name of moral policing, strict action will be taken against those who harass and spread fake news through social media platforms.



The budgetary allocation for the financial year is over Rs 3.27 lakh crore, which shows the dedication of the Congress party to fulfill its election promises. With a special focus on delivering on its five key poll "guarantees", the government has earmarked Rs 52,000 crore annually to ensure implementation of these pledges. This commitment played a key role in the party's victory in the recently held Karnataka assembly elections.


Notably, Siddaramaiah presented the 14th Budget as the Finance Minister, surpassing the record of former Chief Minister late Ramakrishna Hegde who presented the 13th Budget.


As the new financial year begins, an increase in excise duty on alcoholic beverages is expected to affect liquor prices across the state. The move aims to strike a balance between generating revenue for the government and addressing social issues surrounding alcoholism. With a renewed focus on maintaining law and order and combating moral policing, the Congress government aims to ensure communal harmony in Karnataka and protect the rights of citizens.