A concept of ‘good’ freebies
To completely twist the words of a long dead poet, ‘If the elections loom, can the freebies be far behind? On February the 13, a dreaded day according to some sections globally, the Tamil Nadu state announced that it would release INR 5,000 each to more than 13 million females to improve livelihoods. This was nothing new, and more of the same, as several states now routinely announce such cash doles before the assembly elections. In national ones too, the poor sections, whose votes are crucial, find their bank accounts flushed with thousands of rupees.
It is a travesty, in some ways, of the cash benefit transfer, whose aim was ostensibly to stop corruption, duplication, manipulation, and siphoning off money in state welfare schemes. Before Tamil Nadu, West Bengal and Kerala, presented their annual budgets, with sops for sections like women and youth. For instance, West Bengal hiked the monthly dole for women in scheduled castes and tribes from INR 1,000 to INR 1,700, and for other females to INR 1,500. The interim allocation for the higher allowances was INR 15,000 crore a year.
In addition, West Bengal announced that it would give INR 1,500 to the youth (21-40 years) for years, which would cost the state INR 5,000 crore (interim allocation). Not to be left behind, the BJP announced that it would dole out INR 3,000, or twice the amount, if it was voted to power in the forthcoming assembly elections. Not too long ago, the prime minister announced a similar one-time employment money for those who got their first jobs. Trust us, when we tell you, direct benefit transfer has acquired a completely new meaning and interpretation.
The point that we wish to make is that there seems to be no end to freebies, either by national political parties or regional ones, and ruling regimes at the Centre or states. Free power. Free water. Free education. Free gold. Free public transport. Free food. Free health. Subsidies, which were denounced as dastardly in the years after economic reforms may have come down in areas such as food, fertilisers, and fuel. But the freebie culture, which seems more dangerous, has replaced it. Now, it is not the difference between market and subsidised prices that accrues into the hands of the poor. It is the entire amount.
This is possibly why Prime Minister Narendra Modi made a distinction between welfare schemes and freebies a few years ago. He dubbed the latter as ‘revdies,’ of free prasad to everyone and anyone on certain festivals. Welfare was fine, as it empowered the poor and unprivileged. But freebies were out. Sadly, the ruling regime and BJP fell into the same trap of freebies, given the political compulsions, and its ability to woo and attract voters. Now, it is a routine before the elections, and even during the other non-election years. The central and state budgets are full of them, and elected representatives applaud or criticise them.
One can see some smart ways to extend and expand the freebies. The Kerala states, thanks to its much-applauded model of development, which truly is unique, allocated INR 14,500 crore for social security schemes which, most economists and analysts felt was an extension of the freebie regimes. In addition, the state announced that for the arts and science undergraduate streams, education will be free. One wonders why commerce was left out. Maybe there is a social, cultural, political, or economic reason that we do not know about.
Obviously, there is a debate and discussion about the freebie culture. While most argue it is wasteful and “bad,” especially as it imposes huge costs on governance, others contend that some freebies may be “good.” There are instances like free public transport for women, which may lead to more empowerment, especially in urban areas, and where the modern factories (like electronics) are located. Free commutes can help advance female labour force participation, which is low nationally, and especially low in some states. Karnataka and Telangana offer free bus rides. Empowerment, yes. But more women's jobs, not sure.
Odisha, Madhya Pradesh, and Maharashtra, and others, give monthly cash payments to sections of women. Empowerment, of course. But, at least for now, there is no data or study that suggests that cash leads to better and higher standards of living or income levels. One can only assume that the poor, or those below the poverty line, get access to food, and the money possibly helps them to clear a minor part of existing debts. Compare this to scholarships for women's education. Many beneficiaries contend that they used the money to buy tablets and smartphones, especially after they were forced to study from home.
Madhya Pradesh and West Bengal pay a one-time lump sum amount for every girl child that is born in a poor family. The states provide scholarships to girl children. But the benefits are availed only after the girl reaches the age of 18, and has completed school education. Thus, the cash payment promises ensure low school dropouts, and even prepare the girls for higher education at best, or for marriages. Similarly, some states offer large sums specifically for women’s marriages in poor families. In some cases, the offers come with a small amount of gold for the mangalsutras (essential in weddings). The caveat is that the girl needs to be educated, or professionally-trained.
Of course, a better-educated woman is always a great barometer of better health, more empowerment, higher possibilities of taking up jobs or helping families to earn extra incomes. The combination can lead to higher and more productivity-based economic growth. In Bihar, Chief Minister Nitish Kumar has given free bicycles and uniforms to girls (after IX class) for years. It has indeed improved school attendances, and led significantly to higher family incomes. Sadly, such “good” freebies are rare. Most of the schemes do not lead to either sustained empowerment or improvement in infrastructure.
Data from other nations like China, or those in South-East Asia, which are prosperous and wealthier than India, shows that they followed a different mechanism. The former seemed to have forsaken freebies, and focused directly on education, health, and infrastructure. Of course, the counter is that for decades, China grew on freebies, not to the poor families, but to industry, which got free power, forced cheap labour, and so on. For some reasons or other, the norm in India’s electoral politics is to dole them to the former. It will be naive to expect a change.
The author has worked for leading media houses, authored two books, and is now Executive Director, C Voter Foundation; views are personal
