Freebies route to power

With elections round the corner, parties are rolling out a slew of welfare schemes to woo voters. The growing focus on ‘freebies’ has sparked sharp debates over fiscal sustainability and poll promises, Anup Verma and Ashish Srivastava write.
Freebies route to power
Updated on
10 min read

As the Assembly poll storm cloud gathers over the Capital skies, it is once again raining ‘freebies’ on the voter. AAP finds itself in familiar territory, doling out amenities to woo the city electorate.

In spite of their ‘staunch opposition’ of the AAP government’s ‘revdi culture’, the BJP and the Congress too are no strangers to ‘welfare schemes’ involving distribution of ‘freebies’. In fact, the lucrative ‘Mahila Samman’ cash transfer scheme touted by the AAP finds resonance in similar cash benefits being doled out in several BJP-ruled states, including Madhya Pradesh and Maharashtra.

Experts believe, the AAP is setting the narrative for the polls by promising free amenities to the voter, and in order to tilt the odds in their favour, the BJP and the Congress too would have to toe the lines of the incumbent ruling party, and come up with similar schemes.

Arvind Kejriwal’s tryst with ‘freebies’ goes a long way back; a year after forming the AAP, it’s national convener Kejriwal, in 2013, promised to provide 20,000 litre of domestic-use water and 200 units of electricity free of cost every month to every Delhi household. During his 49-day stint as the Chief Minister between December 2013 and February 2014, Kejriwal delivered on both promises.

His track record in fulfilling ‘free stuff’ schemes brought him 67 out of 70 Assembly seats in the Capital in 2015 elections.

The AAP got unprecedented support from Delhi voters, a big thumps up for its ‘freebie-based welfare model’. Riding on the support of such ‘populist’ policies, the AAP got another sheer majority in the 2020 Assembly polls, securing 62 out of the 70 seats. ‘Free schemes’ continued. From 2013 to 2024, the Kejriwal-led dispensation dished out free everything – water, electricity, health, education, bus rides for women and ‘teerath yatra’ for the elderly.

Meanwhile in 2022, PM Modi expressed his views on the ‘revdi culture’, calling it “dangerous”.

“Today, attempts are being made to collect votes by distributing free ‘revdis’ (sweets). This culture is very dangerous for the development of the country. The people, especially the youth, need to be careful of this culture. Those distributing revdis, will not build expressways, airports or defence corridors for you,” he said at a public meeting.

After Modi’s direct onslaught on the freebies culture, several union ministers and political leaders too, had slammed the AAP dispensation for its ‘free-of-cost welfare’ schemes, saying it was an impediment to development. Since then, the BJP has rolled out major schemes stressing the benefits of direct cash transfers; the ‘Ladli Behna’ in MP and the ‘Ladki Bahin’ in Maharashtra has been termed as ‘election masterstrokes’ by the BJP.

Though the BJP and Congress are yet to unveil their roadmap to maximize electoral support, the ruling AAP is banking on nearly a dozen ‘freebies’ dressed as welfare schemes to garner a majority.

‘Free everything’

The promise of 24x7 uninterrupted electricity supply, that too free of cost, takes the cake. Attacking the BJP and the Congress over the issue, Kejriwal dug up days under the Congress rule, “when Delhi faced 8 to 10 hours of daily power cuts. In less than 10 years, the government not only ensured 24x7 electricity, but also made it free, a feat BJP hasn’t been able to match in any of those 20 states where they rule.”

Then there’s the 20,000 litres of ‘free’ water the AAP government provides per household every month.

“When I was in jail, BJP did some mischief and some Delhi residents received inflated water bills. You don’t need to pay those wrong bills. Vote for AAP, and we will waive them off when we come to power again, bringing your bills back to zero. But if you press the ‘Lotus’ symbol, you would have to pay those inflated water bills,” Kejriwal asserts.

‘Free, quality education’ is a much-touted aspect of Kejriwal’s ‘Delhi model’. “18 lakh students in Delhi’s government schools are thriving with access to world-class facilities. Students from financially disadvantaged families are becoming engineers and doctors and making a future for themselves,” Kejriwal says.

AAP boasts of Delhi ‘outstanding’ Mohalla Clinics and government hospitals, offering free treatment and medicines. Ahead of the elections, Kejriwal announced the ‘Sanjivani Scheme’ under which every Delhiite above the age of 60 will receive free treatment, if the AAP forms government in 2025.

AAP says, the ‘Sanjivani Yojana’ will cover all expenses for treatment in private or government hospitals without any economic restrictions. Over 25 lakh senior citizens will benefit from the scheme, they add, highlighting the broad accessibility of the scheme via health cards.

Woman in Delhi have enjoyed the free rides in government buses for some time now. AAP draws the obvious comparison with BJP-ruled states where such facilities are apparently absent. saying this initiative empowers countless women every day.

Weeks before the elections, the AAP supremo rolled out the Mukhya Mantri Mahila Samman Yojana, promising to raise the previously annouced monthly aid of Rs 1,000 to Rs 2,100 if the AAP voted to power. The money would be credited into beneficiaries’ accounts only after elections, as the dates are likely to be announced soon.

The registration for the Mukhya Mantri Mahila Samman Yojana, which was announced during the Budget 2024-25 by then finance minister Atishi, has started and nearly 22 lakh have purportedly registered their names so far.

Similarly, there’s the ‘free pilgrimage’ scheme for elders. The AAP supremo says, “Under this scheme, nearly one lakh senior citizens have so far undertaken pilgrimages to various destinations in the country, including Rameswaram, Shirdi Baba, Ajmer Sharif, Ayodhya, Mathura-Vrindavan, Rishikesh, Jagannath Puri, Dwarkadhish, and so on. Delhi government bore all expenses.”

Kejriwal went on to detail the arrangements made for pilgrims under this scheme, stating that all necessary costs is covered by the government.

In a fresh flash of the ‘culture’ card, the AAP has promised the ‘Pujari-Granthi Samman Yojana’, pledging Rs 18,000 monthly honorarium for temple and Gurudwara priests (Granthi) in the national capital when voted back to power.

“We visit temples and participate in prayers, but we have never paid attention to the needs of priests. I do not wish to call this (the scheme) an income or salary. It is, in fact, a token of respect. I am announcing that an honorarium of Rs 18,000 per month will be provided to these individuals. Upon the formation of our government, this initiative will be implemented,” Kejriwal said.

Ahead of the Assembly elections, the AAP also launched the ‘Ambedkar Fellowship for Political Change’, to create a network of like-minded people. The party said the initiative is intended to equip the youths with abilities to raise their voice, innovate solutions to their problems and get a ringside view of the elections. The selected fellows are to be engaged in fieldworks, media and communications, research and analysis.

Besides, to secure support from the thousands of auto drivers who ply in the city, and their families, AAP has promised comprehensive benefits for them.

Kejriwal announced that after the formation of his government, every auto driver will receive life insurance of Rs 10 lakh and accident insurance of Rs 5 lakh. Additionally, Rs 1 lakh will be provided for the marriage of their daughters, Rs 2,500 twice a year for uniforms; the government will also bear the cost of coaching their children for various competitive exams.

Revdi discourse

AAP has launched the “Revdi Par Charcha” campaign looking to ensure electoral outreach, the campaign will turn the spotlight on the diverse array of freebies up for grabs.

Declaring the launch, the AAP supremo warned the public of the rollback of free facilities if the BJP came to power.

“We are launching a new campaign across the city, called ‘Revdi Pe Charcha.’ Across Delhi, in every street, neighborhood, and society, we will organize a total of 65,000 meetings. In these meetings, AAP workers, officials, mandal in-charges, and booth teams will go among Delhiites to inform them about the work we have done in Delhi,” Kejriwal said.

“If BJP comes to power, the free services that we’re providing to the people of Delhi with their tax money taxes will be discontinued. Among the 20 BJP-ruled states, not a single one offers any of these benefits which we are offering in Delhi. It’s BJP’s commitment to stop all ‘revdis’ in Delhi,” the former chief minister warned.

“Before pressing the Lotus symbol, keep in mind that you’re voting for power cuts to return. Otherwise, press the ‘jhadu’ symbol. Ask your family in Uttar Pradesh, Bihar, or Rajasthan how many hours of power cuts they endure daily.” he warned.

Meanwhile, the BJP is ready with its retorts; “The Arvind Kejriwal and Atishi governments stand exposed today; they are guilty of political fraud in the eyes of the public.”

The saffron party says that after returning from jail, Kejriwal could see his defeat in the upcoming Assembly elections. So he started announcing schemes that existed only in his imagination and had no ground in reality.

“Kejriwal devised a planned strategy to repackage and resell his previously announced Mahila Samman scheme, but it is not yielding results. Kejriwal, who stubbornly refused to implement the Ayushman Bharat scheme in Delhi, has sold the dream of implementing the ‘Sanjeevani Scheme’ for senior citizens after the polls,” BJP countered.

Delhi BJP said there was still time for Arvind Kejriwal to apologize to the public for launching fake Mahila Samman and Sanjeevani schemes. “Before forming the government in Punjab, Kejriwal’s promise of giving Rs 1,000 to women has resulted in women being thrown out of government offices after running from pillar to post.”

L-G inquiries

Amid allegations related to the schemes announced by the Aam Aadmi Party ahead of the assembly elections scheduled for next year, Lieutenant Governor VK Saxena ordered an investigation. Based on complaints lodged by Congress leader Sandeep Dikshit, the office of L-G has issued separate directives to the Chief Secretary and Police Commissioner.

Regarding announcements made by the AAP to give every female in Delhi an amount of Rs 1,000 per month, and enhancement of the amount to Rs 2,100 per month, if elected in the upcoming assembly elections, Dikshit has informed that they (AAP members) are going door to door making women sign some forms. The former Congress MP has requested to institute a high level inquiry in the matter in view of the clarification submitted by the WCD Department.

The directive has asked the CS to get an inquiry conducted in the matter of collection of personal details and forms by non- government people. Further, the CP may direct the field officers to take action against those involved in collecting personal details in garb of giving benefits. The L-G has desired that the CS may also bring this matter to the knowledge of the Election Commission.

Fiscal Woes

The financial implications of Mahila Samman Yojana are staggering. In a note submitted to the government last month, Finance Secretary AC Verma warned that the scheme’s implementation would add Rs 4,560 crore to the government’s revenue expenditure in 2025-26. Combined with other liabilities, this would increase the share of subsidies in the state’s total budget from 15% to 20%.

The fiscal stress, according to officials, could push the Delhi government into a budgetary deficit of over Rs 8,159 crore, exacerbating its reliance on high-cost borrowings.

Adding to the strain is the already significant subsidy bill, which includes Rs 3,250 crore for free electricity up to 200 units. In total, the government has earmarked Rs 6,327.75 crore — 8.3% of its Rs 76,000-crore budget — on various freebie schemes this year. The Finance Department has cautioned against using loans from the National Small Savings Fund (NSSF) to fund recurring expenses, describing such a move as financially risky and improper.

Questioning Efficacy

While the ruling party argues that the scheme is backed by higher-than-expected revenue collections, concerns over its efficacy persist, the Women and Child Development (WCD) Department, which is tasked with implementing the scheme, has flagged several shortcomings.

It highlighted the risk of identity misuse, particularly in a city with a significant migrant population, which could lead to “ghost beneficiaries.” Furthermore, experts question whether the proposed amount is sufficient to bring about any substantial change in women’s lives.

The department also raised concerns that the monthly payout could have a detrimental effect on women’s labor force participation. By providing an alternative income source, the scheme might inadvertently discourage women from seeking paid employment, counteracting efforts to empower them economically.

A Political Calculus

Despite these reservations, the AAP government remains steadfast in its commitment to implementing MMMSY. Chief Minister Atishi has instructed the Finance and Planning Departments to expedite their comments on the proposal, emphasizing the need to defer any long-term decisions until the next financial year. For now, a provision of Rs 2,000 crore has been made in the current budget, with officials estimating that only Rs 1,500 crore will be utilized in the remaining months of the fiscal year.

Observers suggest that the timing of these announcements is no coincidence. With elections on the horizon, the ruling party appears keen to bolster its image as a pro-welfare government, even if it means stretching fiscal limits. While similar schemes have been rolled out in states like Maharashtra, Madhya Pradesh, and Jharkhand, Delhi’s unique financial constraints — its inability to borrow freely under Fiscal Responsibility and Budget Management (FRBM) norms — make such initiatives particularly contentious.

Cost of Populism

As Delhi’s political landscape heats up, the debate over freebies versus fiscal responsibility is bound to intensify. While welfare schemes like Mahila Samman Yojana may resonate with voters, the long-term financial implications cannot be ignored.

Experts warn that the over-reliance on subsidies and recurring expenditure could jeopardize Delhi’s fiscal health, leaving little room for investment in critical areas like infrastructure, pollution control, and public services.

In the end, the AAP government faces a tough balancing act—delivering on its electoral promises without compromising the city’s financial stability. Whether this gamble pays off or backfires will depend not only on the voters’ verdict but also on the government’s ability to navigate the fiscal challenges ahead.

Financial implications

Rs 3,250 crore for free electricity up to 200 units

Rs 6,327.8 crore — 8.3% of Rs 76,000 crore budget — earmarked for various freebie schemes

Implementation of Mukhya Mantri Mahila Samman Yojana would:

Add Rs 4,560 crore to govt expenditure

Increase share of subsidies in state budget from 15% to 20%

May result in budgetary deficit of over Rs 8,159 crore

Exacerbate reliance on high-cost borrowings

It’s all free

  • 24x7 uninterrupted electricity supply

  • 20,000 litres of water per household

  • Quality education at govt schools

  • Healthcare, medications at all government facilities

  • Medical treatment for senior citizens at both private, govt hospitals under Sanjivani Yojana

  • Bus travel for women

  • Direct cash transfers to women under Mahila Samman Yojana

  • Pilgrimage scheme for elders under the Teerth Yatra Yojana

  • Monthly honorarium for Hindu, Sikh priests under Pujari Granthi Samman Yojana

  • Life, accident insurance for auto drivers; Rs 1 lakh for their daughters’ marriage

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