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Debt-ridden Himachal turns to lottery to make a quick buck

Debt-ridden Himachal turns to lottery to make a quick buck

Time of India4 days ago
Kullu: Cash-strapped Himachal Pradesh is trying its luck with lottery to turn its fortunes.
The cabinet has allowed lottery operations that were shut down in 1999. Burdened by a Rs 1 lakh-crore debt, it hopes to make a modest Rs 50 to Rs 100 crore annually from sale of lottery tickets.
The decision to reintroduce lottery in the mountain state after over a quarter century was taken in a cabinet meeting on July 31. The recommendation came from a cabinet sub-committee set up to give suggestions to boost state revenue.
It seems to be inspired by other states that run lotteries. Neighbouring Punjab earned Rs 235 crore through sale of lottery tickets during the 2024-25 fiscal, while the tiny state of Sikkim made Rs 30 crore during the same period.
Kerala tops the list — the southern state earned a jaw-dropping Rs 13,582 crore last financial year.
Himachal, which is finding it difficult to meet the expenses of rebuilding the damage caused by this year's landslides and flash floods, hopes to mop up some much-needed funds this way.
"Many states earn through lotteries. You will be surprised to know how much Kerala earns. Himachal Pradesh govt has decided to restart the lottery system in the state after a recommendation was made by a Cabinet sub-committee," said industries minister Harshwardhan Chauhan.
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"We will follow the tender process to run the lotteries in Himachal Pradesh just as other states do," added Chauhan.
The decision to reintroduce lotteries in Himachal has come at a time when the state's debt stands at a back-breaking Rs 1,04,729 crore, and the per capita debt has reached Rs 1.17 lakh per head, the second highest after Arunachal Pradesh. To make the financial situation even worse, the revenue deficit grant (RDF), financial assistance from the Centre, has come down from Rs 6,258 crore in 2024 to Rs 3,257 crore in 2025, and the GST compensation has been stopped by the Union govt.
Govt is expected to introduce the bill on lotteries in the monsoon session of assembly, beginning Aug 18.
Himachal Pradesh had banned lotteries, both state-run and from outside the state, in 1999 under Sections 7, 8 & 9 of the Lotteries (Regulation) Act, 1998, during the tenure of chief minister Prem Kumar Dhumal.
The lottery decision has not gone down well with opposition BJP. Former CM and Leader of Opposition Jai Ram Thakur criticised the move, saying: "Lotteries were prohibited because they ruined families, homes were auctioned, and people were driven to suicide."
Lotteries are legal in 13 states — Punjab, Kerala, Madhya Pradesh, Maharashtra, Goa, West Bengal, Mizoram, Nagaland, Sikkim, Manipur, Arunachal Pradesh, Meghalaya, and Assam.
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