Lottery to be back in Himachal amidst severe fund crunch

The decision of the Cabinet to allow operation of lotteries in the cash-strapped state of Himachal has opened up a Pandora’s box with opposition accusing the government of trying to rake in revenue from a source which could prove to be disastrous for the people of the state.

It is in its meeting on July 31 that the Cabinet headed by Chief Minister Sukhvinder Singh Sukhu gave the nod for resuming operation of lotteries in Himachal after a span of over 25 years. A presentation was made before the Cabinet by the Finance Department before a decision on the contentious issue was taken. It is being claimed that Himachal could collect anything from Rs 50 crore to Rs 100 crore annually from lotteries which will be sold in the state after tendering its operations under various laws in this regard.

Even as the Congress regime is being accused of resorting to means like lotteries to generate the much-needed revenue, the larger question is that in the present circumstances when the state is financially starved, the government has no option but to explore sectors from where additional revenue could be generated.

With little help pouring in from the Centre, apart from the routine allocation, it is tightrope walk for the Chief Minister. He has, on several occasions, said that the financial health of the state remains precarious and certain harsh decisions will have to be taken to keep the wheels of development moving. Moreover, it is an open secret that many people, despite ban on lotteries in Himachal, are engaging in it and also in online betting. In the backdrop of the hue and cry over the issue, it would be wrong to assume that the ban has prevented people in Himachal from engaging in lotteries and betting.

Limited avenues

The debt burden of the state has already crossed Rs 1 lakh and the state government is keen to generate additional revenue from other sectors, including mining, tourism and power sector. Legalising lotteries is well within the domain of the state government under Lotteries (Regulation) Act 1988 and the Lotteries (Regulation) Rules 2010.

The government could, in the near future, allow controlled cultivation of cannabis, a decision which may also come in for sharp criticism. There has been talk for the last two decades on starting casinos but none of the regimes could dare to take such a bold step, which for a state like Himachal with immense tourism potential could emerge as a major revenue generating area.

Himachal is keen and will have to look for areas to generate revenue which the Chief Minister has been doing even if in certain cases it has resulted in a legal battle. He has sought enhanced free power share in hydel projects with some success and also imposed water cess, though challenged in court.

The state government is finding it difficult to foot the bill of committed liability of salaries of serving and pension of retired employees. The annual salary and pensionary bill has mounted to Rs 26,722 crore amidst a grave fiscal crisis in view of tapering revenue deficit grant and ending of GST compensation.

Background

The Himachal Government had banned sale of tickets of all types of lotteries operated by Himachal, other states and UTs in 1999. This was done under Sections 7, 8 and 9 of the Lotteries (Regulation) Act, 1998.

As per the presentation made by the Finance Department, Kerala had earned huge revenue from sate of lottery tickets, Punjab Rs 235 crore and a small state like Sikkim about Rs 30 crore in one year. The move to ban sale of all kinds of lotteries was prompted by several instances of huge monetary losses to individuals. However, there was no ban on sale of online lotteries as the legislation for banning lotteries in 1999 made no mention of this.

The states that are presently operating lotteries include Kerala, Goa, Maharashtra, Madhya Pradesh, Punjab, West Bengal, Assam, Arunachal Pradesh, Meghalaya, Manipur, Sikkim, Nagaland and Mizoram.

BJP’s opposition to lotteries

BJP’s opposition to the move has generated political heat as the party has said that on being voted to power the decision will be revoked. Leader of Opposition Jai Ram Thakur has gone to the extent of alleging that the move is prompted by vested interest. The former Chief Minister has even alleged that lotteries are being resumed under pressure from the powerful lottery mafia.

Former Chief Minister Prem Kumar Dhumal has also lashed out at the state government to resume sale of lotteries in Himachal as it would emerge as curse for many families. It was Dhumal, who, as CM, had banned lotteries in Himachal.