DC Edit | Do States Count Freebies' Cost?
Before getting sucked into argument over the efficacy of such payouts, it must be said that the inducements are considered legal as the top court upheld the right of political parties to offer freebies while emphasising that they should be done responsibly
The welfare versus populism argument rages on as ruling parties in states going to the polls lean on populism to garner votes. Tamil Nadu, one of the innovators who may even have set the ball rolling on freebies in the clash of the two Dravidian majors aiming for power through people’s votes from the mid-1970s, not only announced a freebie of Rs. 5,000 a month for five months, from February to June 2026, for 1.31 crore eligible women but also put the money on the same day in their bank accounts.
The pre-emptive move was said to have been politically driven as the state suspected the Centre may try to deny the freebie by announcing the poll dates soon. The argument is, however, not about the mechanics of offering such an inducement for votes just before polls. It is about the desirability of populism that triggers a bribe in the garb of a hardship or living allowance.
When Bihar did this by paying some women Rs 10,000 before the polls, the Opposition INDIA alliance parties cried foul, but when it comes to the states they rule, they do much the same. Of course, Tamil Nadu can afford to do it as its public debt – estimated to be near about Rs 9 lakh crore which is just over 26 per cent of GSDP - is well within limits set by the finance commission.
Before getting sucked into argument over the efficacy of such payouts, it must be said that the inducements are considered legal as the top court upheld the right of political parties to offer freebies while emphasising that they should be done responsibly. Since being responsible is a tough task for parties when facing the polls, freebies bring us back to the popular saying that we Indians are like this only.
The cost of freebies for some states is estimated to be as high as Rs 96,000 crore or 2.2 per cent of GDP and which crowds out resources for economic and infrastructure besides leaving less for education and public health. But the benefit of direct transfer into women’s accounts is considered a surefire vote catcher. As ever, the prospect of winning or holding power becomes supreme and trumps pragmatism. The Indian first-past-the-post electoral system becomes a convenient scapegoat.