The other day, our household help was
complaining about how corrupt and unfair the political system and governance
system are; how everything was skewed in favour of the rich and against the
downtrodden, etc.. When I asked her why then she kept voting for Didi, she said
Didi was giving her Lakshmir Bhandar. In fact, the scheme has been so popular
that when the feisty MP Mahua Moitra was campaigning in the rural areas of her
constituency in the last Parliamentary elections, the first question she used
to ask the poor women was whether they were receiving the Lakshmir Bhandar
money and used to be greeted by grateful affirmatives.
I thought this must be a huge amount or some high-value
goods. Turned out, it was just Rs. 1,000 per month (Rs. 1,200 for SC/ST) for
women not employed by government and certain other bodies or retired from them
drawing a pension. Yet, this has been a real game changer for the political
fortunes, earning sustained loyalty from millions of womenfolk. This shows how
desperately deprived and marginalised a large section of our society is. It led
me to think a little about the so-called “revdis.”
On July 16, 2022, speaking in Kaitheri in
Jalaun district after inaugurating the Bundelkhand Expressway, Prime Minister Modi
derisively said, “Today in our country, attempts are being made to collect
votes by distributing free revdis (sweets). This revdi culture is very
dangerous for the development of the country. People of the country, especially
the youth, need to be careful of this revdi culture. People of revdi culture
will not build expressways, airports or defence corridors for you. People of revdi culture feel that by distributing free
revdis to people, they can buy them. Together we need to defeat this thinking.
Revdi culture needs to be removed from the country’s politics.”
Yet, the Prime Minister has now become a
zealous champion of endless revdis and the revdis have improved the political
fortunes of his party.
In the last Madhya Pradesh elections, facing
huge anti-incumbency, everyone predicted that BJP was down for the count. Even
BJP leaders were making rueful statements. Then came the ladli bahna scheme on
28.1.23 and the party romped home with a landslide in the November 2023
elections. Again, the amount was a paltry Rs. 1,000 per month. The elections
were fought on the promise of increasing it to Rs. 1,250 initially and Rs.
3,000 eventually.
In Haryana, the BJP announced Rs 2,100 monthly
allowance for women, scooty for girl students, free dialysis for
patients and two lakh government jobs. For Maharashtra, as many as 146
freebies were announced by the NDA. It was
widely reported that the Maharashtra election dates (due with Haryana elections
held on 5.10.24) were deferred so that the beneficiaries of Ladki Bahin Yojana
(announced on 28.6.24, launched on 17.8.24) would’ve received two instalments
of the money before the elections eventually held on 20.11.24.
In Delhi, the AAP’s freebies list
included raising Mahila Samman Yojana from Rs 1,000 to Rs 2,100 per month and a
Sanjeevani scheme to provide free health care to those above 60 years. The
Congress promised Rs 8,500 for skill training of the unemployed, Rs
2,500 as pyaari didi yojana and Rs 25 lakh insurance under
Jeevan Raksha Yojana. BJP promised Rs 21,000 for
pregnant women, Rs 2,500 per month to women voters, and a Rs 500 subsidy for
LPG cylinders in Delhi.
During the last UP elections, some
of the news portals were predicting a rout for Yogi. However, I saw an
interview of some rural people where they were saying how they were happy that
they were getting ration twice a day, “subah ka Modi se, aur sham ka Yogi se.” I
presume, they were referring to the Pradhan Mantri Garib Kalyan Anna Yojana
(PMGKAY) and the state scheme. Then I thought, no, Yogi has a much better
chance than the news portals were predicting.
It is true that the single purpose
behind this competitive revdi-politics is grabbing the votes. However, is it
such a bad thing?
As long as these schemes are
announced before the Model Code of Conduct kicks in, they don’t fall foul of
any law or rules. Plus, there is a problem of what exactly is a revdi or
freebie. Free bus ride to women is as much of a freebie as reduction in
corporate tax – the latter can indirectly influence vote purchase by adding to
the coffers of a political party. Cooking gas subsidy
which Amitabh Bachchan took one and a half years to forego is as much of a
revdi as free cash transfer without any reciprocity or charge. While reduction
in corporate tax might have some positive impact on investment (this is
dubious, to say the least), free cash will augment human capital and also
increase consumption expenditure, leading to demand side stimulus. Even revival of Old Pension Scheme is a freebie. There
is an argument for ‘merit’ goods alone but it’s difficult to know which is not a
merit good if the externalities are factored in.
On the other hand, much of these
so-called revdis are actually going to sections of society whose voices are
invisible in policy making – women, backwards, marginalized, and so on. This
adds to their much needed social protection which is not available to them but
for these democratic negotiations of vote-bank politics.
Estimates indicate that the current
state expenditure on freebies ranges between 0.1% and 2.7% of Gross State
Domestic Product (GSDP). This is not so bad when we consider that India’s
social protection spending is merely 4 % of the GDP compared to Brazil’s 17 %
and China’s 7.9 %. Even this small amount of freebies have led to not only some
sense of a security net amongst the marginalised, it has resulted in
substantive human capital growth.
A recent report by SBI Research
showers praise on the Ladli Bahna scheme, saying it has impacted the
behavioural habit of marginalised women in such a way that beneficiaries have
increased their spending at merchant outlets by 3.5 times.
So, is there a problem with revdis?
Yes, there is. These revdis are actually government schemes paid for by the
taxpayer. Using them for brand promotion of a political leader by putting her/
his photos on ration bags or entitlement certificates is actually illegal and
unethical. All promotion of these schemes should be informative only and should
be devoid of any photograph of anyone. Also if the election process (e.g.,
polling date) is manipulated around the revdis, that delegitimizes the
democratic exercise.
My considered opinion is, the general public is
interested in only three things: micro benefits, prices and crime/law &
order situation. What the governments should do is to encourage revdis but
prevent financial profligacy by mandating budget deficits both at the Centre
and the states to be below 3 % of the national and state GDPs through
legislation. This is one legitimate role that can be given to the President and
the Governors for strict enforcement. [Despite all the aspersions on AAP’s
freebies, Delhi reported a fiscal surplus (0.4% of GSDP) in 2022-23.] Meanwhile,
all this will go haywire if the crime and law and order situation is not
robust. So, that’s another argument for earnestly implementing the police
reforms as mandated by the Supreme Court order of 2006.
So net, net? Your revdi or mine? Anywhere, any
time. Conditions apply.