Telangana is caught in a 'welfare' war ahead of the Assembly polls. The Congress and the ruling Bharath Rashtra Samithi (BRS) are vying for voters' favour by promising a slew of welfare programs. Targeted at different groups, these promises come in various forms primarily aimed at uplifting the underprivileged.
The Congress was the first mover laying out an ambitious roadmap last month with its "6 Guarantees". Not to be outdone, the BRS, in its manifesto released this week, has unveiled welfare schemes that mirror some of the Congress's proposals but with higher figures. The Congress pledged Rs 2,500 per month for eligible women, while the BRS went a step further with Rs 3,000. When it comes to subsidised gas cylinders, the Congress commits to Rs 500, but the BRS undercuts them at Rs 400.
As was expected, farmers are also on the receiving end of these grand proposals, with the Congress deciding to give Rs 15,000 per month per acre and the BRS offering Rs 16,000. The list continues with pension plans for the elderly, where the Congress offers Rs 4,000 per month and the BRS, Rs 5,000. Additionally, insurance coverage for the elderly differs, with the Congress guaranteeing Rs 10 lakhs and the BRS settling for Rs 5 lakhs for poor households. However, these schemes have started to worry financial experts who question the practicality of its implementation.
Dr. Krishna Reddy Chittedi, assistant professor, School of Economics, University of Hyderabad, expresses his apprehensions. "The promises made in previous elections, including those related to unemployment, loan waivers, and 2 BHK homes, remain unfulfilled. The government is not able to pay salaries on time and this shows financial indiscipline."
He felt that poverty alleviation nowadays looks more like lottery schemes. "The parties are falling into the trap of welfare schemes. The state has Rs 3 lakh crore debts and the vote bank politics will affect the financial health of the state. The CM said that he would increase the revenue. How will he do it? They have exhausted RBI borrowings and the auction of lands did not improve the situation. They tried to increase revenues through increased taxes like liquor and land registration, municipal taxes and general taxes. This will be an indirect burden on the common man."
Indeed, the financial strain is evident. Telangana's state budget for the previous fiscal year was 2,90,396 crores, with the state's debt skyrocketing from 15.7 per cent in 2014–15 to a staggering 28.2 per cent. To honour the promises made by both the BRS and Congress, the state may require more than 5 lakh crores. Schemes like Raithu Bandu, Raithu Beema, and Ashra pensions, in addition to BC Bandhu, Dalit Bandhu, Girijana Bandhu, and others, could collectively demand more than Rs 2.5 lakh crores.
Reddy points out that even if the state's income were to triple, implementing all these programs would still be a huge challenge.
Well-known political analyst Telakapalli Ravi said that there is less focus on basic issues, long-term goals and political policies because of the importance attached to the schemes by various parties.
"They are money schemes following the concept of the World Bank. Transfer money and wash your hands of the responsibility while the market goes its own way. The voter has become a customer who has to choose the best party that gives more money. These are attractive packages and not real solutions for providing social security, like land allotment or employment."
