Political Freebies in BJP-Governed Indian States: Policies, Promises, and Public Finance Implications

The distribution of freebies has emerged as a central theme in Indian political discourse, particularly within states governed by the Bharatiya Janata Party (BJP). While the term "freebie" often evokes images of promotional offers or consumer samples, in the context of Indian governance, it refers to government-subsidized goods and services provided to voters. These initiatives range from agricultural inputs and energy subsidies to direct cash transfers and educational resources. The practice is not exclusive to any single political entity, yet the BJP's approach in its stronghold states has drawn significant attention due to the scale and scope of these distributions.

The debate surrounding these measures is multifaceted, encompassing economic viability, electoral strategy, and the distinction between welfare and populism. With nearly 22 percent of the country's population living in poverty, the allure of government giveaways remains a potent electoral tool. However, the financial sustainability of such programs is increasingly questioned, particularly given the fiscal constraints faced by Indian states. The following analysis examines the nature of freebies in BJP-ruled states, the specific promises made during recent election cycles, and the broader economic implications of these policies.

Defining the Freebie: Ambiguity and Interpretation

One of the primary challenges in analyzing the landscape of government giveaways is the lack of a standardized definition. The Central government, state governments, the Election Commission, and the Supreme Court have yet to establish a clear boundary between "freebies" and "welfare schemes." Generally, freebies are understood as perks, handouts, and giveaways provided free of charge to attract support. However, some experts argue that treating populist schemes and subsidies as synonymous with freebies is incorrect, suggesting that subsidies serve a different policy purpose.

In the absence of a legal definition, political parties often frame the narrative to suit their strategic interests. The BJP, for instance, has publicly criticized the "revdi" culture—a metaphor for distributing freebies—yet simultaneously implements similar policies in states where it holds power. This duality was highlighted when the Prime Minister campaigned in Jharkhand, promising an unemployment allowance of Rs 2000 per month and two free gas cylinders during festivals. Simultaneously, posters featuring the Prime Minister alongside gas cylinders celebrated the LPG subsidy, a staple of BJP governance in various states.

The Election Commission’s stance on the matter has been one of neutrality, asserting that it cannot regulate state policies or decide the financial viability of promises. Instead, the EC has suggested that it is up to the voters to determine whether such policies are sustainable or detrimental to the state's economic health. This lack of regulatory intervention allows parties to continue the practice without legal hindrance.

Promises and Policies in BJP-Ruled States

The BJP’s strategy in its governed states involves a mix of direct subsidies, infrastructure development, and targeted welfare programs. These initiatives are often tailored to specific demographics, aligning with the party's identified vote banks.

Agricultural and Energy Subsidies

In northern Punjab state, the governing BJP offers sugar and clarified butter at low prices, directly targeting the agrarian and rural demographic. This follows a historical precedent where farm workers in southern states received cows and goats. In Uttar Pradesh, a state with significant political weight, the BJP has focused heavily on energy and agricultural costs. Chief Minister Yogi Adityanath announced a 50 percent reduction in power tariffs for agricultural use, benefiting over 1.3 million users in rural and semi-rural areas.

These energy subsidies are a recurring theme. In Jharkhand, the promise of free gas cylinders during festivals serves as a direct appeal to household budget concerns. The continuity of LPG subsidies is a visual and tangible representation of the government's support, often highlighted in campaign materials.

Technology and Education Initiatives

During the 2022 Uttar Pradesh Assembly elections, the BJP promised two crore (20 million) tablets or smartphones under the Swami Vivekananda Yuva Sashaktikaran Yojana. This initiative aimed to empower the youth (Yuva) demographic. In previous election cycles, the fulfillment of promises regarding free laptops for students demonstrated the party's commitment to leveraging technology as a welfare tool. These giveaways are designed to bridge the digital divide while securing the votes of younger demographics and their families.

Direct Cash Transfers and Ration Support

The BJP’s "Sankalp Patra" (manifesto) for the 2024 Lok Sabha elections subtly distributed freebies through the guise of existing schemes. The party targeted the "GYAN" demographic—Garib (poor), Yuva (youth), Annadata (farmers), and Nari (women). Key promises included: * Free Ration: Continuing the provision of free rations for the next five years under the PM Garib Kalyan Anna Yojana. * Free Electricity: A promise of free electricity for poor households through the PM Surya Ghar Muft Bijli Yojana. * Women’s Welfare: Initiatives such as installing free napkin vending machines in public areas.

These measures are categorized by the party as essential services and development initiatives rather than direct cash giveaways, though they function similarly in providing value at no cost to the recipient.

The Economic Context: Fiscal Health and Federal Relations

The proliferation of freebies raises serious concerns regarding the fiscal health of Indian states. The reckless spending of taxpayer money on these initiatives is often viewed as a financial irregularity, effectively bribing voters using public funds for electoral advantage. The Union Government’s standards of financial propriety explicitly state that public money should not be incurred for the benefit of a particular person or section of society unless the expenditure is in pursuance of a recognized policy or custom. Critics argue that freebies do not meet this standard.

The Center-State Financial Tussle

The fiscal strain is exacerbated by the structure of financial federalism in India. States argue that the Centre squeezes their fiscal capacity by raising more resources through cesses and surcharges in which states have no share. According to the 15th Finance Commission, states should receive 41 percent of the divisible pool of taxes. However, actual transfers often hover around 29 percent. This shortfall forces states to rely on their own revenues or borrowings to fund welfare schemes and subsidies, leading to a precarious financial situation.

The Risk of Fiscal Bankruptcy

The continuous distribution of freebies without adequate revenue backing pushes states toward fiscal bankruptcy. The lack of clarity on definitions allows for unchecked spending. When the Centre and states engage in a competitive display of giveaways, the cumulative impact on public debt is severe. The "hostile federalism" mentioned in policy circles refers to this dynamic where the Centre retains a larger share of resources while states are burdened with increasing expenditure obligations, including the provision of freebies.

The "Revdi" Culture: Political Duality

The term "revdi culture," popularized by the Prime Minister to criticize opposition tactics, highlights the hypocrisy inherent in the political system. The BJP’s criticism of the Congress party’s promises—such as free bus travel for women in Karnataka or universal income guarantees—contrasts sharply with its own actions.

For example, the Congress party faced scrutiny for the feasibility of its welfare promises, with the Himachal Pradesh government implementing only half of its ten major promises. However, the BJP is equally susceptible to implementation challenges. The Election Commission had previously advised parties to explain how they would fund their manifesto promises, but this directive was largely ignored.

The duality is evident in the BJP's rhetoric versus action: * Rhetoric: Opposition to the "revdi" culture and warnings against fiscal irresponsibility. * Action: Promising smartphones, laptops, free electricity, reduced power tariffs, and cash allowances in various states.

This contradiction suggests that freebies are an entrenched part of Indian political culture, transcending party lines. The distinction between a "welfare scheme" and a "freebie" is often determined solely by which party is in power.

Strategic Targeting of Voter Demographics

Modern political freebies are not distributed randomly; they are calculated moves to secure specific voter blocks. The BJP's "GYAN" strategy is a prime example of this targeted approach.

  1. Garib (The Poor): Schemes like free rations and subsidized food items (sugar, butter) directly address food security.
  2. Yuva (The Youth): Distribution of laptops, tablets, and smartphones appeals to students and young job seekers.
  3. Annadata (Farmers): Agricultural power subsidies and loan waivers (though not explicitly detailed in the provided text regarding BJP states, a common practice) target the agrarian community.
  4. Nari (Women): Free napkin vending machines, promises of gas cylinders, and discussions around bus travel subsidies aim to capture the women's vote.

By compartmentalizing the electorate and tailoring giveaways, the party maximizes the perceived value of its manifesto. The Dravida Munnetra Kazhagam (DMK) also utilizes this strategy, promising specific freebies to different demographics, indicating a nationwide trend.

The Role of the Supreme Court and Election Commission

The judiciary and the election watchdog have played a reactive role in the freebie debate. The Supreme Court has heard petitions seeking to bar freebies, arguing that they disturb the level playing field. However, the Election Commission has maintained that regulating state policies is beyond its purview, noting that "freebies" are subjective.

The EC’s argument that it is up to the voters to decide the financial viability of policies places the onus of fiscal discipline on the electorate. However, given the high poverty rates (270 million people), voters may prioritize immediate material benefits over long-term economic stability. This dynamic makes it politically risky for any party to unilaterally abandon freebies, creating a "race to the bottom" in terms of fiscal prudence.

Conclusion

The phenomenon of freebies in BJP-ruled states is a complex interplay of electoral strategy, welfare policy, and economic management. While the party publicly decries the "revdi" culture, its governance record in Uttar Pradesh, Punjab, Jharkhand, and other states demonstrates a reliance on subsidies and giveaways to maintain political support. These initiatives—ranging from agricultural inputs and energy discounts to technology distribution and ration support—reflect a broader trend in Indian politics where welfare and populism often merge.

The economic implications are severe, with states facing fiscal strain due to the high cost of these schemes and an uneven distribution of tax resources from the Centre. Without a clear definition of what constitutes a freebie versus a welfare scheme, and without stricter fiscal regulations, the practice is likely to continue. Ultimately, the sustainability of these promises rests on the delicate balance between meeting the immediate needs of a large impoverished population and ensuring the long-term financial health of the state.

Sources

  1. Freebies symbols of funding in India key election features
  2. Is BJP free from politics of freebies?
  3. Freebies vs welfare: Congress and BJP clash as polls near
  4. Battle of freebies: Analysing the freebie tactics in the 2024 Lok Sabha elections
  5. Curb freebies save the states from fiscal bankruptcy

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