Chandigarh, Oct 28: The Punjab Government announced that they are likely to slash the prices of liquor in a bid to check smuggling of alcoholic drinks from neighbouring states. The authorities also claimed that this move can generate an income of around Rs. 2,000 crore for the state government. Also Read - Rajasthan Congress MLA Gajendra Singh Shaktawat Dies at 48

According to a report by Times of India, excise and taxation department officials believe that the state government is suffering due to the nexus between the contractors and liquor companies. Punjab minister of finance Manpreet Singh Badal said liquor business is one of the primary areas from where Punjab government could generate revenue. Also Read - 355th Prakash Purab of Sri Guru Gobind Singh Today | Know All About The 10th Guru of Sikhs, His Teachings Here

Badal also reportedly said that they are looking to increase the revenue collected from the lotteries department. Noteworthy that the government earns around Rs. 20 to 30 crore per year. Also Read - Mirzapur Live: Robber Shot Dead in Police Encounter at Marriage Hall in Punjab's Tarn Taran, 4 Nabbed

Under the Congress government, the prices of liquor were hiked, which in case of country-made liquor was raised by Rs. 10-15 from April 1. In case of Indian Made Foreign Liquor (IMFL) the price was hiked by Rs 30-40.

The government also decreased the number of liquor vends from 6,384 to 5,900. Apart from this, the quota of country liquor was reduced by 14 per cent compared to the previous fiscal year. The quota of Indian Made Foreign Liquor was also reduced by 20 per cent.

Reportedly, in the excise policy for 2017-2018, the Congress government abolished the system of wholesale licence which allowed L-1A and L-1 licensee to lift their liquor quota from the distilleries and manufacturing companies directly.