Indian Elections and thoughtless welfare populism

It is once again election season in India, with five states going for their assembly elections. With elections, come the poll promises and manifestos of different parties. While there might be many ideological fault lines between the political parties, but a common thread of "thoughtless populism" binds them all together. While the Prime Minister himself called to not fall for "Revdies" (freebies), BJP itself is making such promises, even matching or outperforming the Congress in its promises.

Protecting the vulnerable sections and ensuring a minimum living standard for everyone is a responsibility of the government. So, to an extent some welfare measures in terms of education, health and food security are needed. But there is a thin line between productive and unproductive freebies which eventually affect the financial health of a state. The poll populist promises are made without taking a note of the macro-economic situation of a state. And as a result it might lead to misutilization of public funds. Funds which could have created employment and growth in the long term but may not be tangible now, used for making the voter happy by handing out something tangible in the present. Countries like Venezuela, Pakistan and Sri-Lanka are a prime example of how populist welfare schemes and fiscal mismanagement as a result, lead to an economic disaster. It looks all good till you have the means to support the freebies, but eventually to continue doing so, you need sustained growth which brings in more tax revenue eventually. Everyone seems interested in doing the former part but latter nuance seems lacking.

If politicians and parties are to blame for this race to the bottom, so are the voters. If a monthly payout of 2000 rupees can win someone an election, it tells you more about the state's economy than the state's actual budget. The Indian voter seems like a child who forgets everything the moment someone hands out him a lollipop. It is like a stop gap solution that parties find instead of addressing chronic macro-economic problems. Thoughtless populism if unchecked, instead of addressing the inequality in the society might end up doing equal distribution of poverty. So, the next time you hear a politician announce a freebie, lest be assured it definitely isn't, as nothing in this world is "free".

Image Credits: Essa Malik, The Express Tribune