POPULISM & WELFARE
India is a Welfare State. The mother of all welfare schemes is "Garibi Hatao", Garibi Hatao Desh Bachao ("Remove poverty, rescue the country") which was the slogan of Indira Gandhi's 1971 election campaign.
Today, "Neo Welfarism" - "freebies - are the means used by all political parties without exception as part of pre-poll promises declared with utter disregard to its ultimate fallout. The gathering storm of "financial pauperization" looms large over many of the States.
If "Neo Welfarism" is viewed as the panacea for achieving the end objectives of poverty alleviation and empowerment of the historically deprived sections of poor people, it is patently the worst fraud. By the criteria of beneficiaries, almost 70-80% of people are categorized as poor people if one views it from the white ration card holders. In particular, Telangana has 76 lakh beneficiaries (out of 3.53 crores population in 2021) receiving rations under the PDS.
A cursory review of welfare schemes reflects the scale of expenditure on a recurring basis to include ministers and VIPs enjoy free electricity or perks at the expense of the public ; judiciary; and government employees - mufat khori (one who gets everything for free).
Add to them, bank loan write-offs of elites and scamsters. Finally, the schemes for the Below Poverty Line sections of society that constitute the real "Vote Banks" to gain power.
The current list of nearly 70 Central Government welfare schemes include: Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM AASHA); NIPUN Bharat Mission; Ayushman Bharat Yojana; mgrd education; Digital India; Pradhan Mantri Gramin Awaas Yojana; Smart Cities Mission; AMRUT; Pradhan Mantri Awas Yojana (PMAY); Atal Pension Yojna; Pradhan Mantri Suraksha Bima Yojana; Pradhan Mantri Jeevan Jyoti Bima Yojana; B A B A (UJALA); Pradhan Mantri Kaushal Vikas Yojna; HRIDAY - Heritage City Development and Augmentation Yojana; Sukanya Samridhi Yojana (Girl Child Prosperity Scheme); Deen Dayal Upadhyaya Grameen Kaushalya Yojana; Pradhan Mantri Matritva Vandana Yojana; Gramin Bhandaran Yojana; renamed JNNURM; Janani Suraksha Yojana; Kasturba Gandhi Balika Vidyalaya; Deendayal Disabled Rehabilitation Scheme; Kishore Vaigyanik Protsahan Yojana; Deen Dayal Upadhyaya Antyodaya Yojana; Integrated Child Development Services; Mahatma Gandhi National Rural Employment Guarantee Act; Inspire Programme; Livestock Insurance Scheme; Pradhan Mantri Adarsh Gram Yojana; Pradhan Mantri Jan Dhan Yojana; Pradhan Mantri Gram Sadak Yojana; Members of Parliament Local Area Development Scheme; Namami Gange Programme; National Pension System; Midday Meal Scheme; National Literacy Mission Programme; National Scheme on Welfare of Fishermen; National Service Scheme; National Social Assistance Scheme; Pooled Finance Development Fund Scheme; Rajiv Awas Yojana; Rajiv Gandhi Grameen Vidyutikaran Yojana; Rashtriya Krishi Vikas Yojana; Rashtriya Swasthya Bima Yojana; RNTCP; Saksham or Rajiv Gandhi Scheme for Empowerment of Adolescent Boys; Sabla or Rajiv Gandhi Scheme for Empowerment of Adolescent Girls; Sampoorna Grameen Rozgar Yojana; Swabhiman; Swarnajayanti Gram Swarozgar Yojana; Swavalamban; Udisha; Voluntary Disclosure of Income Scheme; National Rural Livelihood Mission (NRLM); National Urban Livelihood Mission (NULM); National Child Labour Projects(NCLP); National Career Service (India) (NCS); Antyodaya Anna Yojana; Pradhan Mantri Kaushal Vikas Yojana; National Food Security Mission; Swamitva Yojana; Garib Kalyan Rojgar Abhiyaan; Pm Kusum Scheme; Ayushman Bharat Yojana; Pradhan Mantri Ujjwala Yojana; Standup India; Pradhan Mantri Bhartiya Jan Aushadhi Kendra (PMBJK); Dr.Muthulakshmi Reddy Maternity Benefit Scheme; and so on.
Add to them, the State's welfare schemes to include: free houses; 300 units free power for domestic purposes; tapped free water to households; solar cooking stoves; 6xfree gas cylinders in one year; washing machines; toilets; farm loan waivers; free power to farmers; Rythu Bandhu schemes (Rs. 10,000/ per acre for annum for farmers besides Rs.2000/- central government scheme); free milk/mid day meals for school children; Anganwadis; Cash gifts for girls at marriage; Amma/Anna Canteens; laptops; education loan waivers; mobile phones; maternity leave of one leave for women; jobs; reservations; Mohalla clinics; social security pensions; and so on.
In the past, Rahul Ghandy, Congress Party, declared to launch Nyay Scheme (Hindi word for justice) as the “final assault on poverty”. He had promised up to Rs. 6,000/- per month for every family earning less than 12,000 rupees a month benefitting around 50 million households in Punjab — or 20% of the total population — qualifying it as the world’s largest minimum income scheme. However, it is well known that the Punjab Government even failed to honor the pre-poll promise of "farmer loan waiver".
Not to be left behind, Arvind Kejriwal, Aam Aadmi Party (AAP), has recently announced free electricity below 300 units for domestic consumption, that is, an assured zero bill for 70% of the Punjab's population. Also, free electricity for farmers, besides Rs. 1,000 per month to every woman in Punjab above 18 years of age. His latest announcement in UP is waiver of pending electricity bills if voted to power, as well as unemployment allowance of Rs 5,000 per month for youths.
Yet another paradoxical announcement is by the Samajawadi Party in UP: families of those who die of bull attacks or cycle accidents will get Rs 5 lakh each.
Also, the Congress Party has promised smart phones for girls in Class 12, scooty for women pursuing graduation, free public transport for women, three free gas cylinders a year to every woman, free medical treatment of up to Rs 10 lakh per family for all diseases, and special incentives and tax exemptions to businesses with more than 50% of the workforce women. The budget required for implementation of these promises can be generated just by stopping the extravagance and corruption of the current government.
Economist Lakhwinder Singh said that the estimated population of women above 18 years of age in Punjab is close to one crores, as per the 2011 census. This means that the total cost of this cash incentive to women, as announced by Kejriwal, will be no less than Rs 12,000 crores annually.
Yet another example to review the freebies implemented by the State of Telangana which was a "Revenue Surplus" state on its formation in 2014. Now, its financial state is in doldrums. A brief review of the rations under the Public Distribution Network would clearly highlight the problems that lay ahead. 80 per cent Telangana citizens have white ration cards. Depending on the type of ration cards, each card holder is entitled for the following:
· AFSC cards: Wheat - Rs.7/- 2 kg per card per month in Municipal Corp;1 kg per card per month in Municipalities; Rice - Rs.1/- for 35 kg per card; Sugar Rs.13.50 for1 kg per AAY cards only; Salt Rs.5.00 -1 kg per card; Kerosene oil -Rs.23/-Municipal Corp. Non- LPG – 2 ltr. Municipalities & Mandal HQ. (Non-LPG) – 2 Ltrs. Rural Areas (Non-LPG) – 1 Ltrs.LPG/ Deepam Card Holders in all areas –1 Ltr.
· Annapurna cards: Wheat - Rs.7/- 2 kg per card per month in Municipal Corp, 1 kg per card per month in Municipalities; Rice - Free 10 kg. per card; Salt - Rs.5.00 for 1 Kg per card; Kerosene oil - Rs.23/- Municipal Corporation non-LPG – 2 ltrs. Municipalities & Mandal Headquarters (Non- LPG) – 2 ltrs; Rural Areas (Non-LPG) – 1 ltrs.LPG/Deepam Card Holders in all areas – 1 Ltr.
· FSC cards: Wheat - Rs. 7/- for 2 kg per card per month in Municipal Corp and 1 kg per card per month in Municipalities; Rice - Re. 1/- for 6 kg per unit without a ceiling on the number of members in the family; Salt - Rs.5.00 per 1 kg per card; Kerosene oil - Rs.23/- Municipal Corp. Non-LPG – 2 Ltrs. Municipalities & Mandal HQ (Non-LPG) – 2 Ltrs. Rural Areas (Non-LPG) – 1 Ltrs.LPG/Deepam Card Holders in all areas – 1 Ltr.
· Benefits Due to COVID-19 Crises: Holders will get 12Kg rice per person; Rs. 1500/- per household.
· Unemployed youth allowance - likely to be increased to Rs. 3016 per month by April 2022.
Over Rs. 30 per kg of rice is the rice subsidy. The total subsidy on PDS rice is over Rs 2,088 crores per year. Add to it, subsidies on other items and also Rs.1500/-each for 76 lakh beneficiaries. Furthermore, White Ration cardholders are also eligible to apply for state and center govt schemes such as Arogyasree, Fee reimbursement, PM Kisan Yojana, PM Kisan Garib Kayana Yojana, CM Relief Found and others. Add to them, the ongoing Rythu Bandhu scheme which is all set to provide Rs 7645.55 Crore into the 66.61 lakh farmers’ accounts for Rabi Season.
The latest scheme announced is in Maharashtra State. Property tax waiver for all those residing in houses less than 500 sq.ft. in Mumbai.
"Competitive Populism in the name of Welfare game by political parties with utter disregard to economic pauperization.
India's external debt was US$ 570 billion at the end of March 2021. And, the debt burden of some of the States particularly for eight States - Tamil Nadu, Andhra Pradesh, West Bengal, Rajasthan, Madhya Pradesh, Uttar Pradesh, Uttarakhand, and Bihar - includes: Tamil Nadu is nearly ₹ 5.7 lakh crores; West Bengal - Rs.4.75 lakh crores; Andhra Pradesh is Rs 3.8 lakh crores. Madhya Pradesh is Rs 2.53 lakh crores; Rajasthan has gone beyond Rs 4.57 lakh crores; the UP is expected to rise by more than 8 per cent, from Rs 5.65 lakh crores in 2020-21 to Rs 6.11 lakh crores in 2021-22; Bihar is Rs 1.93 lakh crores in 2019-20; and Uttarakhand is Rs 45,000 crores.
According to experts, every month the Uttarakhand state takes loans to the tune of Rs 300-400 crores to pay salaries, pensions and other expenses, catering to 2% of the state's 10.48 million population (Census 2011). At the time of formation of the state in December 2000, the debt burden was Rs 4,000 crores, which has gone up more than 11-fold in 17 years.
Punjab debt burden is projected beyond Rs 2.82 lakh crores if the populist announcements and cash disbursements are being made in the run up to elections; and Maharashtra - raised to ₹6, 15,170 crores.
In sum, almost all the States are willingly falling into "Debt Trap". With the "Debt Servicing" burden increasing and budget heads for various departments barely sufficient to meet the expenditure of pays and salaries, they are hardly left with financial means to implement development schemes.
Most importantly, populism has contributed to an increasing bulge of unemployed youth, both in urban and rural areas. Everyone wants a "Government Job" with life-long perks and privileges to include pension. Such an aspiration to be fulfilled by successive ruling parties is an impossible expectation.
Delhi State government's "Business Blasters" advertisement is good for theatrics; but in reality it is not so easy for hordes of unemployed to suddenly turn into business entrepreneurs overnight.
Even China, today's economic superpower by PPP and with its single party CCP rule with its 12-hour a day work culture, has not been able to wipe out poverty. Xi Jinping has set the goal in 2012 to lift 100 million out of poverty. But, has he done it! The national benchmark used by the Chinese government is slightly higher than the $1.90 a day (Rs.160.00 a day) poverty line used by the World Bank to look at poverty globally.
As per World Bank, 22 percent of the population in India or 270 million people still live below the poverty line currently measured as people living on less than $1.25 a day (say Rs. 100.00 a day).
China has raw material resources reserves available. In contrast, India's raw material resources and their reserves are rapidly depleting. In particular, India has to depend for over 80% fossil fuel energy resources on external sources.
"Population Dividend" is a bogey considering the low-quality-human resources development and laid-back work culture of barely 4-6 hours output. With "Brain-Drain" flow unabated, technology power status appears remote. So also, "Population Dividend" may remain a mirage.
India faces an uphill challenge to overcome the unemployment problem and to lift over 270 million (27 crores population) above poverty line. And, the population is estimated to grow to 185 crores by 2050 AD, that is, up by nearly 50 crores.
In sum, "Neo Welfarism - freebies" catering to all sections of society - upper, middle and low class - is real. For the poor, there are on paper a plethora of welfare schemes. Add to them life-long perks, privileges and pensions to political leaders and government employees. Not to be left out of consideration are waiver of bank loans of elites and scamsters. All with the end purpose of somehow gaining political power at various levels by political parties and leaders. It is certainly a forerunner to heralding a economic doomsday scenario or contra mid-long term economic national security interests of the nation.
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