Poll fever, freebie frenzy raging across India

The country has gone into election mode. One can now forget governance till mid-2023. Barring routine management of affairs, nothing much would be happening. All political parties and leaders have started working out strategies and counter strategies. If the political grapevine is to be believed by mid- June the Centre may decide to go in for one nation one election.

Another major indication in this direction is that prediction of the political strategist Prashant Kishor who predicted rout of Congress in Gujarat where elections are due in December 2022. This means that the BJP will be back in power in Modi's home turf. This would further bolster the BJP to go in for early elections.

No government is willing to openly accept that there would be early elections. But they should understand that people are not blind and they can smell the rat faster than politicians. In Andhra Pradesh the TDP has launched election campaign in the name of 'Badude Badudu' (Increase in prices of all commodities including power and bus charges.) The party has been receiving heavy public turnout during the road shows of TDP national president N Chandrababu Naidu.

The ruling YSRCP first launched 'Gadapa Gadapaki YSRCP (YSRCP at every door step). The idea of this programme was to create awareness among people about the various welfare schemes launched by the government as part of its Navaratnas and the direct cash benefit schemes it was implementing.

This of course went for mid-way correction and has now been converted into bus yatra by ministers. This move has invited criticism from the opposition which says that the conversion was on account of people questioning the leaders when they went from door to door on various issues. The situation in Telangana is little different. Here the state government has locked horns with the Centre and the Centre has put brakes on the move of the state government by preventing it from going in for external borrowings.

The interesting part is that though Andhra Pradesh is in greater financial problems which was pointed by CAG and other agencies, the Centre has allowed them to go in for fresh borrowings while Telangana which is in comparatively better position in terms of revenue earning has been denied the possibility of borrowings. While the Centre has its own explanation saying that it had exhausted the FRBM limit, the state government feels that Centre was resorting to vindictive politics.

This locking of horns has pushed the state into sort of financial crisis. The state government has projected in the budget an outlay to seek Rs 53, 790 crore borrowings in the new financial year.

The Telangana government requested the RBI for Rs 6,000 crore borrowing through the sale of security bonds in April and May. The RBI and Union Finance ministry raised doubts on the state's economic status in the wake of crores of loans taken from the corporations which was not mentioned in state debt account.

This has come as a big jolt to Telangana government which was planning to utilise the loan amount for the implementation of Dalit Bandhu and Aasara pension schemes. It had recently reduced the age limit of beneficiaries of Aasara scheme from 65 years to 57 years.

Since the Centre was not allowing the state to go in for new borrowings, it had to put on hold the process of identification of new beneficiaries. If the new beneficiaries were identified, it would have helped the government to make it yet another point during its campaign. Now it proposes to push the blame on to the Centre saying that it was Modi Government which was anti-people.

While the criticism and counter criticism will continue, the financial situation of the state would continue to be in bad shape as the resources generated from state owned taxes and the GST share which it would get would be barely enough to meet the salaries of the employees, establishment charges and payment of interest on the loans taken by the state government.

It also requires Rs 7,500 crore alone for implementation of Rythu Bandhu for the months of May and June. When the scheme was announced, it was made applicable to all irrespective of his land holdings. This invited criticism that it was more to benefit the pink party leaders who own huge lands. The government is now facing problems in implementing this scheme.

On the other hand the unseasonal rains, the delay in starting procurement of paddy and other crops had led to dissatisfaction among the farmers. The claims of the government that their administration was one of the best and showcasing the achievement of 19 out of 20 panchayats getting awards etc has not jelled well with the farmers.

The government which has always been claiming that it was pro-poor and that it was committed for their upliftment came up with a scheme to help those belonging to the Scheduled Castes (who certainly are the most downtrodden and depressed sections lying at the bottom line of the Indian society), with Dalit Bandhu.

When the scheme was conceptualised, the government said the most inhuman of practice 'untouchability' was historically the root cause of this deplorable state that this section of people find themselves in. The backwardness is not just economic as it is social too.

It said Telangana was no different in this aspect of injustice, but the Government, recognising the grave injustice that has been meted out to these sections of the society over centuries, has strongly decided to come up with a revolutionary intervention which will propel the Scheduled Caste families into economic development in a big way thereby ensuring social dignity too.

The strategy it had adopted was to go in for a multi-pronged approach. In addition to existing entitlements like food security, education and social security, a different strategy with a new initiative "Telangana Dalita Bandhu" was introduced to intensify the level of financial assistance to SC households for establishment of suitable income generating economic support schemes as the delivery of credit by banks in the form of loans has become a constraint.

The government also said that the objective of this scheme was to extend one time capital assistance @ Rs.10.00 lakhs per SC family for all SC eligible families as 100% grant / subsidy to establish a suitable income generating schemes as per their choice (without bank loan linkage). This scheme was introduced on the eve of the by election to Huzurabad Assembly constituency. Few people even got money into their accounts for purchase of tractors or to set up some small business. But ever since the TRS lost the election, there has been slow down due to one reason or the other.

This is turning into a white elephant with the restrictions imposed by the centre on borrowings. The government needs about Rs 1500 crore every month for this scheme and another Rs 1000 crore for Aasara pensions. With the financial position not being so bright despite hike in power tariff, registration charges, excise rates etc, the government is feeling the pinch of resource crunch. In all it requires about Rs 10,000 crore during May and June to implement the three major schemes which it feels can get the party votes.

The increase in prices of liquor the government feels would help in mopping up about Rs 500 crore additional revenue every month. But still, it would not be in a comfort zone. The talk now is that the state government would go in for levying new taxes to meet the financial requirements soon which may include another increase in registration charges.

Well one thing all political parties need to realise, which unfortunately they will refuse to, is that all such problems are arising because of its over enthusiasm to vie with each other in announcing freebies. Freebies are must for certain sections but the political parties fail to show fiscal discipline and work out schemes based on realistic calculations.

Whether it is the Union government or the state governments, they should understand that they cannot rob the genuine taxpayers and pay the undeserved sections for the sake of political gains. There are some schemes like Rythu Bandhu which are applicable to farmers who own over 25 acres.