Without dwelling upon the credit that Mahayuti especially BJP deserve in trouncing the INDI alliance in Maharashtra, there is dire need of analysing the ramifications of the freebies like the transfer of cash of Rs 1500 to Rs 2,000 per month to get votes of 2.5 crore in the name of empowerment of women in Maharashtra thereby putting an additional burden of Rs 63,000 crore annually which may push state’s finances into economic distress in future.
The total cost for implementing the poll promises in Maharashtra is estimated to range from Rs 1.55 lakh crore to Rs 1.70 lakh crore annually whereas JMM and Congress alliance’s m.festos may require an astronomical amount of Rs 49,550 crore annually, alongside the Rs 2,500 crore one-time expenditure. ‘Mukhya Mantri Bahan Beti Swabalamban Yojana’, which aims to provide a monthly cash transfer of Rs 1,000 to economically disadvantaged women aged 25 to 50 may cost Rs 12,000 crore annually.
None should see the Mahayuti case in Maharashtra in isolation as the INDI alliance rode on the shoulders of women and other schemes’ beneficiaries provided by Jharkhand chief minister, Hemant Soren prior to polls to ensure retention of power. The direct benefit transfer of Rs 1,000 to underprivileged women aged 18-50 years paid rich dividends in election. Similarly, power dues amounting to Rs 3,500 crore for 40 lakh families were waived, and a universal pension scheme ensured Rs 1,000 for 40 lakh beneficiaries. A cursory look at poll guarantees of congress ruled states showed that voters fell prey and brought the party to power in Himachal, Telangana and Karnataka but now these governments do not have money to implement the promises.
Critics say that Prime Minister Narendra Modi had lambasted “Revri culture” twice in a week in 2016 as it could lead the country towards darkness. But BJP conveniently dubs cash transfer to women as empowerment but it is still against an identical welfare measure taken by Congress ruled states. The fact is that the economy is heading towards doldrums in these states and the Himachal government is facing even the mandatory provision of paying salaries to employees and pensions to retirees. A saying fits BJP which says “agar aap karo tab paap hai magar agar main karoon tab punya hai”(If you do it then it is crime but if I do it then it amounts to crime).Union minister Gadkari’s frank assessment must be appreciated as he did not approve the idea of Ladli Behen Yojna fearing financial backlash thereby affecting other social welfare schemes in Maharashtra. On the analogy of Madhya Pradesh, Ladli Behen Yojna has proved to be game changer to Mahyuti in Maharashtra polls but fallout will be serious on state’s economy and it will encourage every political party to announce such freebies ensuing assembly elections in the country.
The newly elected Maharashtra government, led by the Mahayuti alliance, has outlined a comprehensive set of promises aimed at improving the welfare of its citizens. However, these ambitious commitments come with significant financial implications. Here’s a breakdown:
Farm Loan Waiver and Financial Assistance to Farmers means a complete loan waiver for farmers and an annual payment of Rs 15,000 under the Shetkari Samman Yojana. Additionally, a 20% subsidy on the Minimum Support Price (MSP) for agricultural produce. (Rs 52,000–Rs 62,000 crore annually), Food and Shelter for All(Estimated Cost: Rs 10,000 crore annually ,assuming state-backed food distribution and housing for the underprivileged),Enhanced Old Age Pension(Rs 2,500 crore annually (with around 50 lakh beneficiaries), Stabilising Essential Commodity Prices(Rs 3,000 crore annually (to fund market interventions and price subsidies), 25 Lakh Jobs and Financial Support for Students(Rs 37,000 crore over 5 years, Rs 12,000 crore recurring.), Farm Connection Roads in 45,000 Villages(Rs 25,000 crore (over 5 years, based on infrastructure project costs), Better Salary and Security for Anganwadi and Asha Workers(6,000 crore annually (based on 4 lakh workers), Focus on Renewable Energy and Reduced Electricity Bills( Promote solar and renewable energy and reduce electricity bills by 30%. Cost: Rs 10,000 crore annually, to subsidize electricity and implement renewable energy projects) and Vision Maharashtra 2029, Unveil a 100-day roadmap for the state’s long-term development. Cost: Rs 1,000 crore, preparatory and planning expenses).
Financial experts say that the total cost for implementing these promises is estimated to range from Rs 1.55 lakh crore to Rs 1.70 lakh crore annually, excluding one-time infrastructure projects like road building and Vision Maharashtra 2029.The government will face significant fiscal pressure, likely requiring increased borrowing, reallocation of funds, or new revenue-generation strategies. Balancing these promises with fiscal responsibility will be the true challenge.
Scenario In Jharkhand Is Equally Disturbing
The JMM and Congress alliance’s m.festos are a testament to the growing trend of electoral promises aimed at capturing public sentiment, particularly among women and economically weaker sections. The JMM’s commitments include sweeping benefits, ranging from employment generation to subsidized essentials, carrying significant financial implications. The promise of creating 10 lakh jobs includes 5 lakh government positions with an average salary of Rs 25,000 per month, costing Rs 15,000 crore annually. Additionally, facilitating 5 lakh private-sector jobs through training, subsidies, and infrastructure would require another Rs 5,000 crore annually, bringing the total employment cost to Rs 20,000 crore per year. Health insurance with a coverage of Rs 15 lakh targets 2 crore economically weaker individuals, requiring a premium of Rs 1,000 per person and incurring an annual expenditure of Rs 2,000 crore.
Subsidized LPG cylinders feature prominently, with a subsidy of Rs 650 per cylinder for 1 crore families, offering 12 cylinders annually, adding Rs 7,800 crore to the state’s fiscal burden. Another ambitious promise is free education for girls up to the Ph.D. level, with 15 lakh eligible beneficiaries supported at Rs 25,000 per student, costing Rs 3,750 crore annually. The pledge for 33% reservation for women, while devoid of direct financial outlay, demands substantial legislative and administrative efforts. Collectively, the JMM’s m.festo entails an estimated annual cost of Rs 33,550 crore.
Not to be outdone, the Congress m.festo adds its share of high-cost promises. Offering 250 units of free electricity per month to 50 lakh households at Rs 6 per unit is projected to cost Rs 9,000 crore annually. Filling 2 lakh vacant government posts, with an average salary of Rs 25,000 per month, contributes another Rs 6,000 crore annually to the fiscal load. Additionally, loan waivers for 10 lakh farmers, averaging Rs 25,000 per loan, pose a one-time cost of Rs 2,500 crore, while subsidized agriculture initiatives, including free seeds and irrigation support, add Rs 1,000 crore annually. Altogether, Congress’s promises amount to Rs 16,000 crore annually, with an additional one-time cost of Rs 2,500 crore.
When combined, the JMM and Congress alliance’s m.festos demand an astronomical Rs 49,550 crore annually, alongside the Rs 2,500 crore one-time expenditure. While these promises have undoubtedly resonated with voters, the financial realities of their implementation appear daunting. Jharkhand’s already fragile fiscal health raises serious questions about the sustainability of such commitments. The state risks following Maharashtra’s trajectory of financial instability, where lofty promises have translated into mounting debt and economic strain. The debate over freebies transcends political rivalry, underscoring the need for a delicate balance between electoral populism and fiscal prudence. Without sound financial planning, these promises may deliver short-term political gains but at the cost of long-term economic sustainability.
In final assessment, none can deny that covetousness, hankering and craze for winning polls have become the embodiment of all political parties without bothering about the fallout which is bound to push states and centre in financial distress. Experts say that it is short-term gain which is being achieved at the cost of people thereby endangering the collapse of the economy and voters are falling prey to these false promises. Pessimism prevails all around as none of the political parties will give up Machiavelli’s Principle to grab power without bothering about the unprincipled, immoral and bigoted and means.
(Writer is political analyst and strategic affairs columnist based in Shimla)
