Govt money is Neta’s money yaar!

Tadka of Populist Revadi

By Poonam I Kaushish

It is a perfect electoral cake rolled out by various Parties to the strains of ‘Vote For Me,’ iced with luscious lip-smacking freebies galore for one and all in the run-up to five State Assembly elections. From aam aadmi-debt-ridden-kisan-top tax payer on the assumption that populist hand-outs yield better electoral rewards than reasoned policies and sustainable programmes. No matter, sound economic sense has been surrendered to political gamesmanship as Government money is neta’s money!.

Witness how our netagan are raining populist schemes and loan waivers merrily converting political sops into vote percentages wherein social and economic upliftment is weighed on vote-bank political scales.

In Rajasthan Congress’s Gehlot Government announced further subsidy on cooking gas cylinders offered by the Centre at Rs 500 each, free food packets containing pulses, sugar, salt and oil to over crore people through ration shops alongside mehengai rahat’ relief camps at which people can register for 10 welfare schemes at once, free electricity up to 200 units for every household and up to 2,000 units for farmers.

Besides, Chiranjeevi Health Scheme providing Rs 25 lakh per family cover and free healthcare services at all Government facilities, free smart phones with free internet to women for three years, one-time payment of Rs 5,000 for gig workers along-with extending social security to them.

Not to be left behind Prime Minister Modi underscored every poor family would get a pucca house and a tap connection if BJP is elected, laid foundation stones of Rs 10,000 crore projects  including AIIMS campus, new airport terminal in Jodhpur, Rs 4,500-crore Mehsana-Bathinda-Gurdaspur gas pipeline and an LPG plan and Rs 3,000 crore road projects. Sic.

Congress has been ahead of the game in Madhya Pradesh by promising farm loan waiver, free electricity for agricultural uses, subsidies for farm inputs,  reinstatement of Old Pension Scheme,  free education from Classes 1 to 12, Rs 500  allowance to Classes 1 to 8 students, Rs 1,000 monthly to those in Classes 9-10 and Rs 1,500 to those in Classes 11-12 under the ‘Padho-Padhao’ scheme.

Incumbent BJP Sarkar is seen playing catch-up to its bête noir by subsidising LPG after Congress promised it for Rs 500, post Congress announcing free electricity up to 100 units and further 50% discount on next 100 units, the State Government postponed electricity surcharges  payment, even Ladli Behna scheme increase payment to Rs 1,500 followed its rival’s announcement, subsidised gas cylinders for Rs 450 to women and 35% reservation for women in some Government jobs.

Not to forget foundation of Rs 11,895-crore Delhi Vadodara Expressway, Rs 4,000 crore to bring drinking water to six districts, Rs 4,800-crore road development and Rs 1,750-crore Vijaipur-Auraiya-Phulpur gas pipeline.

And the ring-a-ring-a-roses of populist tadka continues in Chhattisgarh, Telengana and Mizoram. Despite Supreme Court issuing notice to Centre, MP, Rajasthan Governments and Election Commission (EC) over distribution of cash and other “freebies” during elections earlier this month. This, after petitions seeking ban on poll freebies were referred to a three-judge Bench last year, for reconsidering a 2013 judgment that said promises in manifestos could not be termed “corrupt practices.”

Remember Modi too called for halt to free “revadi” culture followed by Supreme Court mooting a committee of Government, Niti Aayog, Finance Commission, RBI and Opposition to brainstorm “dispassionately and make recommendations last year. Succinctly, underscoring the reality, “no Party will allow taking out these freebies. We are heading towards disaster.”

Raising a moot point:  Where do netas get monies to fund these doles? Obviously, by taxing the people. Should our hard-earned tax money be used to boost a Parties electoral votebanks?  Shouldn’t leaders or their Parties pay for it from their pockets or funds? Should loans be waived? Is freebie different from subsidy? Are they good and bad hand-outs? Who decides?

Asserts a senior Congress leader, “Why blame us? In February 2018 Prime Minister gave Rs 25,000 to working women, covering 50% of a two-wheeler cost and PM Kisan Yojna of Rs 6,000 a year to every farmer”. Besides, “when the rich really rip off the banking system, with huge NPAs and write-offs alongside a rent-seeking bureaucratic culture, can we say the poor are too pampered with these freebies? Call it the ‘endowment effect.”

It can be argued Parties are obliged to be seen as populist in the no-holds-barred free-for-all electoral race, as it would be stupid to wish away political lollipops to entice voters. True, assurances of cheap rice, wheat or free electricity can be justified. Aren’t such concessions imperative in a country where 70% people live below poverty line, hungry stomachs feed on enticing neon lights of fast food, rummage in garbage bins for rat-infested left-overs’ and 600 million earn less than Rs 30 a day. Is it not our leaders’ duty to take care of citizens?

Certainly, but at the same time one should never mistake political rhetoric for reality. Politicians of all hues cry hoarse for “a better deal for the poor.” Those who ask for water have been given watershed management programmes. Those who want naukri have been handed NREGA. Debt-laden farmers have got loan waivers. More trees, not coveted mangoes!

However, given the level of dishonesty, populism and irresponsibility which increasingly governs our political system, the measures announced are invitation to disaster. Bluntly, political promises in the economic sphere should not cross prudence limits, where it starts hurting the economy. None sees the danger of economic derailment as the biggest losers are the poor in whose name freebies are justified.  As it stands the economic situation is worsening with prices rising and high inflation notwithstanding Reserve Bank saying economic parameters are OK.

By providing free candies to voters, citizens have become dependent on netas resulting in no empowerment. Consequently, people are unable to critically evaluate leaders. Also, given the economic logic there are no free lunches, a populist scheme is invariably paid for either by higher taxes or increased inflation. Precisely, what new State Governments would have to do.

What next? One, make it obligatory for Parties to inform EC where they will get monies to implement free giveaway once elected. Will they raise taxes or reduce allocation for programmes? Two, Parties should offer permanent solutions instead of seemingly advantageous, but temporary stop-gap measures. Three, EC should penalize Parties who use quick exploitative mechanism to win votes.

Clearly, leaders must draw a distinction between welfarism and populism. Welfarism takes needs of different sections of society as part of a large development framework. Populism is purely guided by vote-banks, granting concessions which have no economic rationale or are part of larger Governmental economic planning. It provides immediate succour at the future’s expense. It is no remedy for education and health neglect, faulty industrialization and under-investment in rural areas.

The aam aadmi is no fool. Each populist slogan only accentuates his growing awareness. The real significance of any electoral battle is that unless the problem of poverty is substantially resolved, fake promise will continue to entice voters whereby it could endanger our democracy. Time to draw a ‘lakshman rekha’ on vote-bank politics as democracy cannot allow exercise of public funds as private spending. What says you? — INFA