India, Dec. 25 -- As the state's fiscal deficit is expected to cross Rs.2 lakh crore, thanks to the many populist schemes launched by the Mahayuti government ahead of the Assembly elections, the state government has started pulling out all stops to mobilise resources to cap the shortfall.

For that purpose, on Tuesday, the excise department pitched the idea of issuing new liquor licences, allowing sale of wine in beer shops and departmental stores, and taking joint action with police against illicit liquor dens, while the finance department pitched a three-dimension plan of focusing on excise, transport and value added tax on diesel and petrol, to bolster revenue generation.

Soon after the swearing-in on December 5, deputy chief minister...