On the eve of Diwali, Andhra Pradesh Chief Minister N Chandrababu Naidu launched a free gas cylinder scheme, one of his ‘Super Six’ guarantees that catapulted his party to power. The scheme, under which households receive three free refills, entails an expenditure of Rs 2,684 crore a year. While the aim of a smoke-free rural India must be supported while helping families below the poverty line, the moot question is if an all-encompassing scheme is necessary.
The scheme being an electoral promise, the Naidu government is duty-bound to implement it. But a glance at the number of beneficiaries raises questions. The eligibility criterion is simple: One needs to have ration and Aadhaar cards and a gas connection. In other words, the scheme now applies to 1.47 crore ration cardholders in the state.
No political party opposes it for the fear of being branded anti-poor. However, given the state’s precarious financial situation, we suggest the government scrutinises the applicants to ensure that the deserving poor receive the benefit. The previous YSR Congress regime went for welfare schemes that now burden the state with, by some estimates, Rs 13 lakh crore in debt. Besides, there are no free lunches—someone must pay for it. The middle class usually ends up bearing the burden.
The Naidu government is currently giving finishing touches to the budget, which is likely to be presented in the second week of November. The Super Six guarantees—which include free bus travel for women, input subsidy of Rs 20,000 to farmers and unemployment dole—are going to levy a huge burden. The chief minister says he will create wealth so that it could be distributed. And, to be fair, he has been on an overdrive to attract investments and create jobs ever since he assumed the mantle.
But it is going to take some doing to transform an agrarian Andhra into an artificial intelligence hub and a knowledge economy, as Naidu envisions. If that is to be the destination, freebies must be limited to the eligible and, more importantly, a cut-off date must be set. The money thus saved could be used to improve medical, educational and industrial infrastructure, which will help attract investors and entrepreneurs. It will also ensure easier living, which is the ultimate goal.