The Aam Aadmi Party has lured Delhi with a laundry list of populist dole — from free water, electricity and Internet to new schools, hospitals and homes. But nobody knows how exactly it will finance these hairbrained plans and projects

Delhi votes in a bizarre way. A high price-hit people, despite tasting a fall in inflation statistics, believed that the moon promised by the Aam Admi Party will be delivered to them. This will cost the exchequer severely. The promise of 20,000 litres of free water a month to all households, a 50 per cent cut in power supply, regulation of school fees, establishment of primary health centres, provision of free wi-fi, installation of 15 lakh close-circuit TVs for women’s security and the building of pucca houses for shanty dwellers will cost the Delhi Government a minimum of Rs40,000 crore a year in addition to its annual Budget of about Rs40,000 crore.

With support from the Communist Party of India (Marxist), the AAP pandered to the desires of disenchanted low-income groups, who constitute over 60 per cent of the city-State’s population. Yet, even the CPI(M), when in power, was not able to do what the AAP has promised in Delhi. AAP’s promise to reduce value added tax indicates that it may reject the goods and services tax. This was a move formulated by West Bengal’s former left Front Finance Minister Asim Das Gupta. How will the AAP led-Government fund welfare schemes with reduced revenueIJ

The AAP has calculated that in order to cut the price of electricity by half, the Delhi Government will have to shell out a subsidy of Rs13,000 crore, nearly Delhi’s total development expenditure over the past year. This will benefit over 80 per cent of consumers. This is what Mr Arvind Kejriwal tried to do during his first 49-day rule. It will cost the Government Rs4,000 crore. Mr Kejriwal had paid Rs1,600 crore to the power distribution companies from the SC/ST welfare fund for about three months of electric supply.

The AAP’s Rs4,000 crore subsidy may hit the construction of existing schools and hospitals. How will it then fund 500 new schools and collegesIJ The AAP says it will get land free of cost from Delhi villages. This is absurd given that Delhi land-holders voted against the dilution of the consent clause in the land acquisition Act.

Even assuming that the land does come free, the construction of primary structures for schools, at a modest rate of five crore rupees per school, will cost Rs2,500 crore. The salary of teachers, administrative staff will cost a minimum of seven lakh rupees per school — Rs35 crore a month, Rs17,500 crore a year. The AAP says it has a different model, possibly that of a shiksha mitra, low-paid, part-time contractual teachers appointed by many States. Even that would cost at least half of the estimates.

Each of the promised 900 primary health centers requires land. Each centre will need at least five people to man the place, including at least two doctors, a male and a female. The salary bill itself will be around five lakh rupees a month, and another five lakh rupees for other expenses — total Rs10 lakh a month, if the centre does not have to pay rent and give medicines. It will still cost Rs90 crore a month or Rs1,080 crore a year. Actual expenses will almost be triple or over Rs3,000 crore a year. The cost of adding 20,000 beds to hospitals, even at Rs1,000 a bed, will come to around Rs200 crore initially. The additional 40,000-strong manpower will cost at least Rs2,000 crore a year.

Water has been another poll plank which the AAP has sought to cash in. According to the 2011 census, about a quarter of Delhi’s 1.30 crore population does not get treated water through pipes. The party promises to provide 700 litres of free water daily to every household. Assuming a kilolitre of treated water costs five rupees to produce, it will require Rs94.5 lakh per day or Rs340 crore a year. Apart from the cost, Delhi has a perennial problem of scarcity of water. The Congress-led Government had created tensions between Haryana and Delhi. Besides, free water across the globe, it was found, leads to much wastage.

The party has an ambitious plan of setting up its a 6200MW power plant. Calculating at five crore rupees a MW, the plant will cost Rs31,000 crore. Plus there is a running cost of at least Rs200 crore a month, payable to staff and other administrative expenses. Since prices will be subsidised, 50 per cent of the expenses will have to be borne by the State. Also, where will this plant be set upIJ

land is also needed if the incoming AAP Government wants to build pucca houses for people living in shanties. The Delhi Government does not own an inch of land. How will it do itIJ Also, a number of agencies will be involved. AAP will have to fight with the Union Urban Development Ministry to fulfil its promises. Regularising unauthorised colonies, which allegedly mushroomed under the patronage of politicians, will be a daunting task for the AAP.

According to AAP estimates, a fully wi-fi-ed Delhi will require Rs150 crore. It will be done by a private company funded by the Government. In reality, wi-fi will be free for 30 minutes only. The 15 lakh CCTV cameras are to be linked to the wi-fi network. Each camera will cost Rs2,000, AAP says. It means another Rs300 crore will be  required for installation. This will require 50,000 people. Assuming a basic Rs10,000 a month salary for each, the annual cost comes to Rs600 crore.

The cost of massive data servers and a huge control room for surveillance is not a part of the estimate. Monitoring and other administrative cost will add a minimum of Rs12,000 crore a year. There are also costs for additional street lights, proposed marshals to protect women in buses, over 50,000 toilets in public spaces and 1.5 lakh toilets in slums. It will be a burden of at least Rs20,000 crore. Recurring costs are not included in the estimate.

If the Delhi Police comes under the charge of the Delhi Government, as demanded by the AAP, an additional expense of Rs4,630 crore will have to be borne. This is currently borne by the Union Government. Promises are easy to make. Fulfilling it requires hard cash which Delhi hardly has. Populism is fine but nobody has answered how it is to be financed. One hopes that AAP years ahead don’t become a ding-dong political battle with the Centre.