Financing freebies in Tamil Nadu amid Covid crisis

The manifestos of both the Dravidian majors have tall promises, especially for women and students, with the parties accusing each other of stealing ideas. While the much-talked-about Rs 1,000 and Rs 1,500 dole for women family heads, free LPG cylinders or a subsidy on that, and the gold for thali that married women wear have triggered fierce gender discourses on whether there is an institutionalisation of a woman’s role in the Indian household, these promises have also brought out the sword of Damocles from its scabbard and made it hang over the state’s already fragile treasury.

Though the Election Commission’s model code of conduct says that promises by political parties in manifestos must be buttressed by the financial strategy to execute them, there seems to be little light on that. TN has always had a culture of freebies with an eye on the ballot box, from television sets to wet grinders, with the former a veiled revenue model for the party-run channels. This year, there is even a promise of a free washing machine for every family card holder.

How feasible will these be as the state’s revenue deficit has tripled to Rs 65,994 crore during the Covid-induced crisis? A dole of Rs 1,000 per month will cost the exchequer approximately Rs 24,000 crore a year, and if it is Rs 1,500, it would be Rs 36,000 crore a year. Similarly, six free LPG cylinders in a year would cost around Rs 10,000 crore. While there is a risk of sounding elitist when criticising such promises, it is necessary that the manifestos explain the numbers and method of financing them. The opposition DMK has played it safe by giving a 10-year-vision for few of its announcements, while the buoyant ruling party has promised to include “more to the list of current benefits”. Instead of looking at them as freebies, the parties can perhaps use these as an opportunity to increase indigenous production and create a push for the “Make in India” endeavour.