Editorial: Raining freebies-Read

Though Modi had, in 2022, castigated other parties for propagating a ‘freebies culture’, the BJP’s Delhi manifesto has gone one up on the AAP playbook

As Delhi gears up for the Assembly elections, the political narrative is dominated by freebies as the key contenders for power — Aam Aadmi Party (AAP), BJP and Congress — are engaged in a no-holds-barred race to woo the electorate with handouts. From cash incentives for women and the elderly to subsidised cooking gas and free electricity, the main political players are doubling down on populist measures to win over voters. While such strategies may yield short-term electoral gains, the long-term implications for governance, and fiscal stability are profound and troubling. The ruling AAP has promised to raise the financial assistance under the ‘Mukhyamantri Mahila Samman Yojana’ from Rs 1,000 per month to Rs 2,100, while the BJP has come up with the ‘Mahila Samridhi Yojana’, under which Rs 2,500 each will be provided. Not to be left behind, the Congress has announced the ‘Pyari Didi Yojana’, which promises monthly aid of Rs 2,500 to all eligible women. The AAP’s governance model over the past decade has been defined by populism, with free water, electricity and bus services forming the backbone of its voter outreach. While these measures have undoubtedly provided relief to the city’s underprivileged, they have also strained Delhi’s finances, reducing its revenue surplus significantly in recent years. What is concerning is the escalation of this competition. Though Prime Minister Narendra Modi had, in 2022, castigated other parties for propagating a “freebies culture”, the BJP’s manifesto has, ironically, sought to go one up on the AAP playbook.

Keen to beat the ruling party at its own game, the BJP has made a slew of promises, including handouts to pregnant women, subsidised cooking gas and aid to students. There is no denying that the demarcation between welfare schemes and freebies is blurred. Also, incentivising voters is not illegal. In fact, schemes like the midday meal began as a freebie in Tamil Nadu but over the years became a nationwide nutritional programme for government schoolchildren. Such welfare initiatives, including redistribution plans like the rural employment guarantee scheme, have helped alleviate poverty and reflect fiscally responsible spending. Governments should design plans keeping in view the fiscal headroom. Reckless poll promises not only vitiate the electoral process but also make a mockery of Indian democracy. Former RBI Governor D Subbarao has rightly observed that competitive populism is fiscally perilous and inimical to the country’s long-term growth. A plea, arguing that freebies amount to bribery and impose an unaccounted burden on the state exchequer, is being heard by the Supreme Court which has sought responses from the Centre and the Election Commission. In the case of Delhi, if either the AAP or the BJP were to fulfil their promises after coming to power, it could entail additional expenses of over Rs 5,000 crore and raise the share of subsidies in Delhi’s budget from 15% to 20% of its total expenditure.