Populist Welfare Schemes in Indian State Elections
State governments across India have disbursed a total of Rs 67,928 crore on populist welfare schemes in preparation for Assembly elections over the past two years, transcending party lines.
Key States and Spending Initiatives
- Maharashtra (2024):
- Rs 23,300 crore disbursed under schemes like Majhi Ladki Bahin Yojana and free power.
- Post-election challenges in meeting commitments, causing budget cuts in other departments.
- Bihar:
- Rs 19,333 crore spent; constitutes 32.48% of the state’s own tax revenue or 7.40% of total revenue.
- Significant fiscal impact due to high spending ratio.
- Haryana:
- Minimal welfare spending at 0.41% of tax revenues; BJP retained power for a third term.
- Chhattisgarh:
- Spent 0.66% of its tax revenue; Congress lost power while BJP gained.
- Jharkhand:
- 15.95% of tax revenues on schemes, mainly women-centric and power bill waivers.
- JMM returned to power.
- Madhya Pradesh:
- BJP disbursed 10.27% of its tax revenues on welfare schemes; retained power despite anti-incumbency.
- Rajasthan:
- Despite Rs 6,248 crore in welfare spending, Congress lost power.
- Odisha:
- BJD spent Rs 2,352 crore but lost power.
Challenges and Criticisms
- High allocation of tax revenue to welfare schemes raises sustainability concerns, especially in states like Bihar with limited tax bases.
- The trend is seen as a shift towards direct benefit transfers in electoral politics, which some criticize as "institutionalized bribery".
- The BJP’s stance is ironic as Prime Minister Modi has criticized such initiatives as "revadi culture", undermining fiscal discipline.
Impact of Women-Centric Schemes
- Women-targeted schemes significantly influence electoral outcomes.
- Major schemes include Maharashtra’s Majhi Ladki Bahin (Rs 13,700 crore), Bihar’s Mukhyamantri Mahila Rozgar Yojana (Rs 12,100 crore), and Madhya Pradesh’s Ladli Behna (Rs 8,091 crore).
