By Arun M Nair
Thiruvananthapuram: Behind the enviable social indicators of Kerala lies an unusual revenue model. Liquor queues and lottery counters, more than factories or trade, sustain the state’s treasury—a dependence that fuels welfare but also raises questions of cost and conscience.
On any given evening in Kerala, queues form outside BEVCO and Consumerfed outlets, the state-run liquor stores. A few paces away, roadside lottery vendors wave colourful tickets at passers-by, calling out the day’s jackpot. Together, these two scenes capture the paradox of Kerala’s economy: its welfare state is bankrolled not by factories or oil wells, but by liquor bottles and lottery stubs.
The numbers are telling. In 2024–25, liquor sales through BEVCO crossed Rs 19,500 crore, bringing the treasury nearly Rs 15,000 crore in taxes. For years, the state-run lottery was also seen as a matching contributor. Daily draws and festival “bumper” tickets created the impression that lottery sales rivalled liquor in filling the exchequer.
However, recent clarifications from Finance Minister K.N. Balagopal have punctured this belief. He pointed out that lottery sales figures are often quoted in gross terms, masking the high costs of running the system.
As per the 2024–25 budget, total lottery ticket sales are projected at Rs 13,244 crore. But after payouts—prize money, agents’ commissions, staff salaries, and promotions—the net gain for the state is only about Rs 1,022 crore.
The picture, then, is more modest: liquor remains the true heavyweight, while the lottery provides only a fraction of the perceived bounty.
Critics argue that such dependence comes at a cost. Surveys estimate 32.9 lakh people in Kerala consume liquor, with more than 83,000 battling addiction. The lottery, too, often draws in those least able to afford repeated losses. Yet for a cash-strapped government balancing welfare schemes and salaries, these inflows, however uneven, are hard to replace.
Kerala’s fiscal story thus remains one of paradox. The state is celebrated for its literacy, healthcare, and social achievements. But behind the progress lies a BEVCO queue and a lottery seller’s call—two unlikely symbols of an economy caught between welfare needs and social costs.
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