Bengaluru: The Congress party has made a series of bold announcements in its poll manifesto before the crucial Assembly elections in Karnataka, revealing a range of enticing freebies aimed at capturing the attention and support of voters. However, these freebies come with their own set of consequences, including fiscal strain, reduced productivity, corruption, discouraged investment, and increased inequality.
The five “guarantees” of Congress are:
1. Gruha Jyothi – 200 units of free electricity every month to every household.
2. Gruha Lakshmi – Rs. 2,000 each month to the female head of every household.
3. Anna Bhagya – 10 Kg rice, every month to every member of BPL families.
4. Yuva Nidhi – Unemployment allowance of Rs. 3,000 per month for graduates and Rs. 1,500 per month for diploma holders.
5. Uchitha Prayaana – Free bus travel for women in government buses.
While these promises have won the Congress a state, a slight majority of the voters were charged to vote for freebies, concerns about economic viability and potential drawbacks of the freebies persist.
It is expected that the Congress plans to finance these initiatives through a combination of increased taxes and government borrowing because when party leaders said, “We will give you money, free bus travel for women, free rice, and free electricity,” they didn’t mean that the party leaders would pay for the freebies. It’s all paid for by responsible tax paying citizens of the state.
For instance, the richest Congress leader of Karnataka, D. K. Shivakumar with his entire declared assets, could only pay for approximately 2.5% of the annual Congress Guarantee Budget. With the help of KGF Babu, the Congress could pay 5% of it. But KGF Babu has been expelled from the Congress and he has no reason to help the party.
These guarantees have now raised eyebrows across the state as the citizens wonder how the guarantees will be fulfilled. According to estimates from statistics experts, these guarantees will take away Rs. 60,000 Crore from the state exchequer annually. That’s double the cost of the newly approved Varanasi – Kolkata Expressway which is 610 km long, six-lane, greenfield access-controlled expressway.
The Anna Bhagya scheme gives away 10 kilos of rice to each member of a Below Poverty Line (BPL) family. As Rahul Gandhi claims, “No one in Karnataka will sleep hungry.”
All this said and done, critics argue that the cost of implementing these promises is substantial. Detractors warn that such extensive freebies could strain the state’s finances, leading to an increased fiscal deficit.
A higher deficit can result in elevated interest rates, making it more expensive for businesses to secure loans and dampening overall economic growth. Additionally, the allure of free goods and services may inadvertently discourage productivity and work ethic, as individuals may become less motivated to pursue employment or entrepreneurship.
Furthermore, concerns have been raised about potential corruption associated with the distribution of freebies. Large-scale spending on such initiatives may create opportunities for misuse of funds, eroding trust in the government and compromising the quality of governance.
Critics argue that the promised freebies may discourage private investment, as businesses may hesitate to undertake new ventures in an environment where the government is extensively providing goods and services. The extreme welfare-based approach could hamper economic growth and development.
Another point of contention revolves around the potential exacerbation of inequality. When certain segments of the population become eligible for exclusive benefits, it can raise feelings of unfairness and resentment among those who are not included. Such social disparities can lead to unrest and political instability.
The President of KPCC Manifesto Committee, G. Parameshwara made a statement on May 16 that there will be conditions attached to the poll promises. This obviously did not sit well with many netizens as they asserted that the Congress has deceived the people of Karnataka by not mentioning the conditions to freebies beforehand.
While the freebies may resonate with voters grappling with financial challenges, concerns about the long-term sustainability and economic impact of these promises persist. Overall, these ambitious freebies appeared to be a state-wide subscription model for the Congress. A subscription of the people’s trust to gain a large vote bank through five overwhelming promises.