new delhi in the tugofwar between indias states and prime minister narendra modis central government for cash to fight the coronavirus outbreak liquor has become the latest battlegrounda wellknown teetotaler modi banned alcohol sales during the countrys national lockdown to contain the virus blocking a crucial source of direct tax income for states already struggling to ramp up health infrastructure and provide food to millions left jobless the loss of liquor tax revenues an estimated rs 700 crore 92 million a day have prompted calls from states like punjab to lift the ban advt liquor is a major source of revenue for all states amarinder singh punjabs chief minister from the opposition congress party said last week how will i make up for that will the people in delhi give it to me they dont even give re 1the fight over alcohol is among a series of recent moves in which the government has eroded the ability of states to raise the cash needed to handle the coronavirus which has now led to over 31000 infections and more than 1000 deaths across the country indias constitution gives states the responsibility of delivering health care and ramping up its often decrepit hospital system to cope with a surge in demandmodi a former chief minister of the state of gujarat had long championed the idea of cooperative federalism and in his first term worked with states to roll out a nationwide sales tax but his second term has seen greater conflict with state governments particularly those led by opposition parties who have resisted his hindu nationalist partys backing of moves that discriminate against the muslim minorityit is the local governments that are fighting on the ground said thomas isaac finance minister of the southern state of kerala which has yet to receive its share of april taxes all funds have dried up and theres no way to really raise funds advt states hobbledapart from taxes on alcohol the other sources of state governments revenue duties on fuel and real estate transactions have also dried up with the economy in shutdown mode indias tax shortfall could be as high as rs 29 lakh crore this fiscal year said m govinda rao economist and former government adviserstate leaders have also criticised plans to centralise the purchase of coronavirus medical and protective kits as well as a special virus relief fund that falls outside the remit of the auditor the prime ministers citizen assistance and relief in emergency situations fund or pmcares raised rs 6500 crore 848 million in its first week according to a news agency reportwhats happening is not in the spirit of cooperative federalism isaac said theres no clarity on how the funds collected will be usedthe prime ministers office didnt respond to an email seeking comments on how the fund would be utilised or audited in announcing the creation of the fund modi said it was in response to requests from people to donate and said it