Now many political parties are choosing a single shortcut to win elections. One most commonly-chosen shortcut is free guarantees. It has happened that there have been many knocks after promising to give everything including essential items under many schemes from money transfers. Political analysts say that expecting development is impossible with free schemes. It is said that it is uninviting for governments to announce freebies in a way, adding that it will turn people lazy and devour any motivation they have for themselves to lead a better life.
It is known that the governments of Telangana and AP have been taking massive loans and distributing money to the people in the name of welfare schemes and freebies. These are also called Navaratnas. But recently Modi made several comments on these welfare schemes. He said that implementation of such free schemes, i.e. shortcut politics, has become the biggest challenge for the country. He warned that short circuit is certain if you depend on them. After these comments, there is a discussion as to whom he said this. Recently he visited Telangana and AP states. Now, if we see such comments on the state’s financial situation and implementation of welfare schemes, is he indirectly targeting the TRS and YCP governments? The discussion is going on. These comments were made in a public meeting held after launching development works worth Rs.16,800 crores in Jharkhand.
Political analysts and experts are already criticizing the government of Telangana for its reckless spending on the revenue generated via sources. Beyond the financial needs of the state, rationality is forgotten and arbitrary spending on the respective sectors is causing the revenue deficit. Loan waivers, the old pension system, the welfare of various sections of people, and all these welfares are finally leading to disturbance in the financial sector.
On the other hand, it seems that 63% of the revenue generated by the Telangana government in the form of taxes and mining is spent on welfare. Political analysts say that spending such a huge amount on welfare and non-productive needs will not help the state to sustain itself financially and will lead to economic disaster in the future. It is clear from looking at their budgets that the states are resorting to different forms of provision from the center as the sources of income are reduced with free schemes. It is in this context that Prime Minister Modi’s comments can be considered a warning.
Currently, many states in the country are implementing free schemes. The number of these schemes is also high in Andhra Pradesh. The Jagan government is covering up the scandal that the state is being pushed towards the financial crisis in the name of free schemes without financial discipline. Union Finance Minister Nirmala Sitharaman said that Andhra Pradesh had the highest revenue deficit in the past. Sitharaman revealed that the deficit was higher than expected. The Union Minister gave a written reply to a question asked by BJP MP GVL in the Rajya Sabha. He said that the revenue deficit in AP is high due to free schemes like Amma Odi and free electricity being implemented by the government. On this occasion, Nirmala Sitharaman said that the CAG report makes it clear that the deficit has increased in AP due to financial indiscipline.
The free schemes implemented by the political parties in the respective states are emptying the government coffers. Especially in AP and Telangana, there are many welfare schemes. Even though the government is depositing money directly into the accounts of the poor in the name of various schemes, experts warn that there is a great danger that follows this. In addition to this, the debts of lakhs of crores of rupees and the interest payable on the debts are only increasing with time.