GS 2: GovernanceGS 3: EconomyGS 3: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.GS 2: Government policies and interventions for development in various sectorsGS 2: Vulnerable Sections
Cost of promises, Pg6
With the Bihar Assembly elections approaching, both the ruling NDA and the Opposition are announcing a slew of welfare schemes, reflecting a trend of competitive populism and electoral welfarism, often lacking fiscal and policy coherence.
In Bihar, scheme announced for free electricity up to 125 units/month for 1.67 crore households starting August 1.
Free rooftop solar under Kutir Jyoti Yojana for 58 lakh BPL families.
35% job reservation for women in all state government jobs.
Social security pension increased from ₹400 to ₹1,100.
Youth internship scheme to benefit 1 lakh people in 5 years with ₹4,000–₹6,000 monthly support.
₹882.87 crore plan for redevelopment of Punaura Dham Janki Mandir under religious tourism.
Travel assistance for Bihar migrants during festivals.
Detailed Insights:
Electoral motivation: These measures reflect the use of last-minute welfare schemes as tools to influence voter sentiment rather than fulfill long-term development goals.
Reactionary policymaking: Many announcements appear to be reactions to the Opposition’s promises.
Lack of fiscal prudence: Schemes often lack cost-benefit analysis or budgetary clarity, raising concerns about sustainability and misuse of public funds.
Freebie culture: Despite PM Modi’s criticism of “freebie politics,” unfunded populist schemes continue across states like Maharashtra, Delhi, and Punjab.
Erosion of federal accountability: The proliferation of populist measures weakens long-term state financial planning and undermines democratic deliberation.
Voter manipulation risk: Welfare measures without a policy roadmap indicate paternalistic and transactional governance, which may disrespect the electoral intellect of the public.
Way Forward:
Ensure fiscal responsibility and sustainability in welfare design.
Promote evidence-based policymaking over competitive populism.
Develop transparent beneficiary targeting mechanisms to reduce leakage and misuse.
Institutionalise State Finance Commissions to evaluate welfare implications on state budgets.
Encourage inter-party consensus on welfare frameworks to avoid reactionary policies.
Strengthen voter education to promote demand for performance over doles.
Key Concepts Involved:
Kutir Jyoti Yojana: A scheme aimed at providing electricity to rural households below the poverty line.
Fiscal populism: The practice of offering unsustainable public expenditures to gain electoral advantage.
Competitive welfarism: Rival political parties offering escalating welfare schemes to outbid each other for votes.
Mains Mock Question:
In the context of rising competitive welfarism in Indian states, critically examine the impact of election-time freebies on governance, fiscal health, and democratic accountability.