Liquor has become a casualty in cash-strapped Meghalaya as the state government has hiked its maximum retail price by 25 per cent. It will come into effect from Friday midnight.

A statement issued by the chief minister’s office on Friday said the government has approved a hike of 25 per cent on the maximum retail price for liquor in order to generate additional excise revenue to meet the “unexpected” financial burden arising out of the Covid-19 situation.

The government anticipates an additional revenue collection of Rs 120-130 crore annually from the hike, the statement noted. In the last four days, when wine stores were allowed to operate, the government earned revenue of around Rs 6 crore.

The financial crisis had earlier forced the government to defer the salary of many of its employees for two months. It was announced that for salaries to be paid for April and May 2020, there would be a deferment of 50 per cent in the gross salary of the chief minister, deputy chief minister and ministers as well as All India Services Officers and central services officers on deputation to Meghalaya. There would be a deferment of 35 per cent in the gross salary of Group A and B officers, and 25 per cent in that of Group C staff of all departments except for all officers and staff of the health, home (police) and home (civil defence and home guards) departments.

However, there would be no deferment in the salary of Group D employees and pension payments.

The government stated that the measures were only for deferment of salaries and that the deductions would be paid back to the employees after the economic and fiscal situation improves.