Cost of promises, Pg6

Key Highlights:

• 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.