When a candidate uses his money to bribe the voter, it is treated as corrupt practice, but when his party bribes voters using ‘public money’ it is not treated the same way

Taking a cue from the practice of mesmerizing voters with freebies - an acronym for “something is given free of charge” - started by the Aam Aadmi Party (AAP) in the February 2020 Delhi elections, early this year, in Karnataka elections, the grand old party (GOP) gave five guarantees (a more respectable nomenclature for freebies) on a grand scale. These delivered the intended result.  

In the just concluded elections in Madhya Pradesh (MP), Rajasthan, Chhattisgarh and Telangana, the guarantees have occupied the centre stage in the manifestos of all parties expanding their ‘scope’ and ‘scale’. Apart from free electricity, subsidized gas cylinders, free smartphones and tablets, free education/access to English-medium schools, OPS (old pension scheme) etc, the parties have tried to outsmart each other by promising cash transfers.

In Rajasthan, the GOP promised Rs 10,000 every year to the female head of the family under the Griha Lakshmi Yojana. In MP, BJP has promised Rs 1,250 per month under Ladli Behna Yojana; the amount will gradually be hiked to Rs 3,000 per month. Additionally, under the Ladli Lakshmi Yojana, girls will get Rs 200,000/- till they get married. In Chhattisgarh, the BJP has promised Rs 12,000 per year to married women under the 'Mahtari Vandan Scheme'. In Telangana, the GOP has gone a step ahead by promising 10 grams of gold in addition to Rs 100,000/- cash to women getting married.

In the past, farm loan waivers have been a favourite with most parties. This time, they have also gone for a hefty increase in the minimum support price (MSP) for farmers. In MP, BJP has promised MSP of wheat at Rs 2,700 per quintal - 27 per cent higher than the current Rs 2,125 per quintal (fixed by the Centre). For paddy, it has promised an MSP of Rs 3,100 per quintal - 42 per cent higher than the current level of Rs 2,183 per quintal; ditto in Chhattisgarh.

The guarantees are being justified as welfare schemes. This is a farce. A welfare scheme is rooted in three basics viz. the state assistance goes to persons who are poor and primarily focused on bare essentials such as food, fuel, water, housing, education and health; it should be backed by well-orchestrated efforts to garner revenue so that budgetary position is not destabilized; finally, it is given for a ‘limited period’ after which the beneficiaries should stand on their own.

Mooted with an eye on winning elections, freebies defy these cardinal principles. Barring a few instances where the poor tag is appended to the Scheme, most of them are given to all and sundry. The parties promising these freebies don’t even make an assessment of the funding required forget making efforts to garner resources. Finally, no party ever whispers about exiting from the scheme.   

In such a scenario, destabilisation of the State budgets is inevitable. In Karnataka, the five guarantees promised by the GOP imposed additional liabilities of around Rs 62,000 crore thereby doubling its fiscal deficit (FD) to over Rs 120,000 crore. The precariousness of the situation can be seen from a comment by the Deputy CM ‘The government has no money to give to the MLAs for carrying out development work; courtesy the poll guarantees’.   

In MP, at the current rate of Rs 1250 per month to 12.5 million beneficiaries, the Ladli Behna Yojana costs the state exchequer about Rs 18,750 crore per annum. This will go up to Rs 45,000 crore per annum as the quantum of assistance eventually goes up to Rs 3,000 per month. Meanwhile, the promised hike in MSP to farmers in MP and Chhattisgarh will dent their budgets. For instance, MP will have to spend Rs 5000 crore more on its purchase of paddy.

Unlike any well-intentioned scheme that could have a sun-set, a poll-induced guarantee once given, is more likely to stay eternally and over time, the quantum of assistance will only increase. Besides, it will have repercussions at the all-India level.

For instance, in view of the impending Lok Sabha elections next year, there could be pressure on Modi to give a similar hike in MSP as promised by MP and Chhattisgarh. That will upset the Centre’s budget drastically. Since 2021-22, the tax revenue of both the Centre and states have been increasing at a rapid pace and this is helping them rein in their FD levels. If the taxpayers realise that their contributions are being used to indiscriminately give poll-bound freebies to all and sundry, it may even trigger non-compliance amongst them. 

The giveaways covering a wide spectrum of items besides large-scale cash transfers also become a breeding ground for corruption. This is evident from the inclusion of millions of ineligible or fake persons in the list of beneficiaries. For instance, during scrutiny of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), 24 million ineligible farmers were found to have received income transfers in 2021-22 under the Scheme.

The biggest damage freebies inflict is to change the mindset of people in a way that makes them complacent towards work. When, people get access to most of their basic needs free of charge that too ‘perpetually’, they won’t be inclined to make efforts. Whichever way one looks at it, freebies are a recipe for economic disaster. The only way to avoid it is to prohibit parties from promising doles. The question is: who will do it?

In an order in S Subramaniam Balaji vs the Government of Tamil Nadu & Ors in July 2013, the Supreme Court (SC) observed that the distribution of freebies of any kind influences all people. “It shakes the root of free and fair elections to a large degree.” Yet, it held:-

“the promises in the election manifesto cannot be construed as ‘corrupt practice’ under the Representation of People Act (RPA), or any other prevailing law and, hence, distribution of freebies can’t be stopped when the ruling party uses public funds for this purpose through the passage of Appropriation Acts in the state Assembly”.

After nearly nine years, of hearing a PIL seeking directions against ‘freebies’ on January 25, 2022, the SC observed “This is no doubt a serious issue, budget for freebies is going above the regular Budget. This disturbs the level playing field”. Yet, on August 3, 2022, it threw the ball in the court of political parties asking them to enact a law on curbing freebies. When the latter are deeply rooted in this practice, why would they enact a law to curb it?

A big deterrent is none other than the SC order of July 2013 which says “… it can’t be construed as corrupt practice…” Within the meaning of section 123(1)(A) of the RPA, 1951, the expression ‘bribery’ has been defined to mean any gift, offer or promise by a candidate or his agent or by any other person with the consent of a candidate or his election agent of any gratification with the object of inducing an elector as a reward to his candidature.

The irony is when a candidate uses his own pocket money to bribe the voter, it is treated as corrupt practice, but when the party on whose symbol he is seeking election bribes voters using ‘public money’, the top court doesn’t treat it that way. Currently, a three-judge bench, headed by CJI is hearing a plea to take a re-look. Will it alter its stance?

(The writer is a policy analyst, views expressed are personal)