CONGRESS PARTY SIX GAURANTEES IN TELANAGANA STATE - ANALYSIS

CONGRESS PARTY SIX GAURANTEES IN TELANGANA–ANALYSIS -*Dr. S. Vijay Kumar Broadly speaking, welfare means efforts to provide a basic level of well- being through subsidized social services such as healthcare, education, infrastructure, transportation, vocational training, and public housing. While, Amartya Sen has stressed on State-led social welfare schemes to tackle India’s developmental issues, others like Bhagwati argues that focusing on economic growth is important so that enough resources are available for social welfare programs. In his view, inequality may rise with economic growth initially, but sustained growth will eventually also sustain the social benefit programs to redistribute and mitigate the effects of the initial inequality. In any country, welfare programmes should be parallel to the economic development of a country. That is to say, balance must be maintained between the development and welfare. Welfare programs that are beyond a country's development level are not good for the economic development of a country, as it happened in Greece. On the other hand, if the economy develops rapidly without corresponding improvement in people's living standards and public welfare, people will not feel a "sense of gain", which in turn will have a negative impact on economic development. It is a very pathetic condition that in our country all the political parties promise several things before elections to come in to power, and never explain the public, how they will fulfil the said promises. Here, I will try to explain the need to maintain the balance between welfare and development with examples: First, welfare is not a free lunch. Welfare at any level needs economic support. High welfare under high debt will create many social problems as happened in Greece. Recently, Sri Lanka’s economy was ruined due to higher level of debt beyond its level of economic development. On the other hand, Sweden depend ---------------------------------------------------------------------------------------------- *Retired HoD & Associate Professor of Economics, KGC (NAAC “A” Grade College), Ex-Member of Board of Studies in Economics, Kakatiya University, Warangal, Telangana State (India). 1 on high taxation and high deficit. But high welfare supported by high taxation reduces development funds for enterprises, impeding the development of enterprises. And if enterprises lose energy, the entire economy will suffer. High taxation also affects individuals' desire and capacity for consumption and thus undermines people's enthusiasm to expand production. Second, excessive welfare will breed dependence and result in waste of social resources. Although, high welfare comes from individual tax payers’ contribution, it seems like a public welfare provided by the State. It will result in many social problems, such as waste of social resources, voluntarily unemployment and retirement in advance. Once people get used to this kind of dependence, economic development will be undermined. Third, excessive welfare beyond a country's development level will impede accumulation and harm welfare programs in the future. In economics, production is the top priority and it decides consumption. A society has to improve its production level if it wants to improve its consumption level. Production here refers to extended production, because only expanding the scale will breed competition and provide unfailing supply. The expansion of scale should be high-quality and high-level expansion of production through innovation and improvement of the industrial structure. Fourth, the distribution of public welfare should be fair and transparent. Today, the public welfare in different social groups is unbalanced, especially when it comes to urban and rural areas. Therefore, the authorities should make efforts to rectify the imbalance and should take measures to prevent unfairness and corruption from creeping into redistribution of welfare. India is a developing country, and development is a key in solving social, economic problems, and only further development can guarantee sustainable and high-level welfare. Any Welfare Scheme must support the livelihood and elevate his/her economic status but should not make him/her as slave. In fact, the present Governments are making their citizens as slaves and using them as their vote bank at the cost of State (Public) Exchequer. Thus, wasting tax payers’ money. In this context, I would like to remind our Central and State 2 Governments to learn and must follow from this Chinese proverb – “Don’t give fishes freely to the public but should train them how to fish”. That is to say, not to give anything freely but make them self-reliant and earn their livelihood themselves without depending on the Government. Actually, any Government’s basic duty is to provide all with the basic needs like providing employment opportunities, free education up to Intermediate (12th Class) to all, especially economically weaker sections, infrastructure facilities like medical, health, safe drinking water, good roads and homes etc. Forgetting this, today Governments are providing freely some unnecessary welfare schemes like free food @ Rs. 5 per person (Annapurna Canteens in Telangana State), Free transportation, Rythu bandhu for rich farmers (eliminating tenant farmers) etc. for the sake of votes. Due to this, previous BRS Telangana Government was not in a positionto pay salaries and pensions on 1st every month. Telangana Government is scrambling for funds to implement Welfare Schemes. In such a worst financial situation of Telangana State, Congress President Mallikarjun Kharge unveiled the party's manifesto, named 'Abhaya Hastham,' for the Telangana elections. The manifesto includes six guarantees. Six Guarantees of Congress Party: 1. Mahalaxmi Scheme • INR 2500 Financial assistance to women • INR 500 for gas cylinder • Free travel in RTC buses 2. Telangana Rythu Bharosa • INR 15000 for farmers INR 1200 for agriculture labours • INR 500 bonus for paddy crops 3. Telangana Gruha Jyothi Scheme • 200 units of free electricity 4. Indiramma Indlu Housing Scheme • INR 5 lacs for all those who do not have a house in Telangana state • 250 sq. yards for all Telangana movement fighters 5. Telangana Yuva Vikasam Scheme • Vidya Bharosa card worth INR 5 lakh for Telangana students • Establishment of an International School in Telangana at every Mandal 6. Cheyutha Scheme Telangana 3 • Health Insurance up to INR 10 lakh for elderly citizens • Pension of INR 4000 to elderly poor citizen Congress Party promised to implement the above said guarantees within 100 days of resuming in to power. Nobody will oppose and nothing wrong to declare several welfare programmes to the public in their election manifestos by the political parties. But, I don’t understand why the political parties have forgotten their responsibility to explain the public that how they will fulfil their election promises. In the recent Telangana State elections, Election Parties competitively declared many promises to win the elections. I don’t understand why the Telangana Congress manifesto did not explain the modalities of implementation of six guarantees. When Telangana State was formed in 2014-15, the State had a surplus of Rs. 72,658 crores, this is increased to 3,89,673 crores according to the Budget estimates of 2023-24 which is 23.8 per cent of GSDP. According to the Government’s latest declaration in the Telangana State Assembly, presently the State is reeling under a total of debt of Rs 6,71,757 crores. The Centre has steadfastly refused to increase the borrowing limits under FRBM (Fiscal Responsibility and Budget Management Act, 2003). In such a worst economic situation, it is definitely a big challenge for Telangana Congress Government to fulfil six guarantees. Analysis of Six Guarantees: First, Mahalakshmi Scheme: Under this scheme, women of Telangana will receive: Rs. 2,500 every month, Gas cylinders for Rs. 500, Free travel in TRTC buses. According to one estimate Telangana Government is require to spend about Rs. 24,000 crores to provide Rs. 2,500 for women per month, about Rs. 3,199 crore @ Rs. 500 per Gas Cylinder and about Rs. 2500 crore for women free TSRTC travel annually. 4 Second, Rythu Bharosa: Under this scheme, farmers will be provided: Rs. 15,000 per acre for farmers, and tenants, Rs. 12,000 per year for agriculture labour and a bonus of Rs. 500 per year for paddy crop, Free electricity to farmers. Under the BRS government's Rythu Bandhu, farmers were paid Rs 10,000 annually. The previous BRS government has paid Rs 72,000 crore under a similar scheme as Rythu Bandhu during the past five and half years, with 70 lakh farmers benefitting. Now, the Congress increased from Rs. 10,000 to Rs. 15000 per acre for farmers and also promised to pay Rs. 12,000 per year for agriculture labour and bonus of Rs. 500 per year for paddy crop. These additional promises under the Rythu Bharosa will be a lot of additional financial burden on the State exchequer. Telangana White Paper on Power declared a total debt of Rs. 81,516 crores (as on 31/10/2023). Of these debts Rs. 30,406 crores are day to day working capital loan taken to pay dues to the generators that supplied the electricity. In such a situation, the continuation 24-hour power supply will be a herculean task. Third, Gruha Jyothi: Under the scheme, Congress promised to provide 200 units of free electricity to every household. This is estimated to cost about Rs. about 2,500 crores on the State exchequer. Fourth, Indiramma Indlu: Under this scheme, the Congress promised 250 sq. yards plot for all Telangana movement fighters. House site and Rs. 5 lakhs for people not having their own house. This estimated to burden the State exchequer of about Rs. 9,202 crores. Fifth, Yuva Vikasam: This scheme is for the youth of the state. It includes: Vidya Bharosa card worth Rs. 5 lakhs for students. Setting up Telangana International Schools in every Mandal. The students who got selected under the Yuva Vikasam Scheme will get a Vidya Bharosa Card. Through this card, students will get Rs. 5,00,000 as financial assistances for their education. This scholarship amount will be given to the students of Telangana International Schools. 5 Sixth, Cheyutha Scheme Telangana: Under this Scheme Health Insurance up to INR 10 lakh for elderly citizens and Pension of INR 4000 to elderly poor citizen will be provided. This is estimated to cost about Rs. 40,000 crores a year. In addition to the above said Schemes, the Congress Party also promised to waive up to Rs. 2 lakh farm loan. The BRS government had budgeted Rs 21,000 lakh crore to waive up to Rs one lakh. As per the calculation, the Congress government needs to allot at least 35,000 lakh crore for the next five years to implement the farm loan waiver. According to the state government statistics, as many as 42 lakh farmers were identified as beneficiaries during the previous regime for the crop loan waiver. To implement above said 6 Guarantees and to waive up to Rs. 2 lakh farm loan, according to a rough estimate there will be an additional burden of more than 70 to 80 Thousand crores per year on the State exchequer. As a part of implementation of Two Guarantees out of Six Guarantees recently elected Telangana Congress Government released a subsidy of Rs. 374 crores for the free travel to women scheme in the TSRTC buses along with Rs. 298 crores for Rajiv Aarogya Sri Scheme and Rs. 996 crores for power subsidy. Policy Recommendations: Without modifications to the Six Guarantees, it is highly impossible to implement them in Toto. Hence, I am suggesting the following policy recommendations to the Government of Telangana with good will and faith to implement them in letter and spirit in the interest of bright future and welfare of the Telangana people and to save Telangana State from falling in further serious financial crisis and debt trap. 1. Mahalaxmi Scheme: (a) Rs. 2,500 monthly financial assistances to women. Regarding this point, first of all, Government must identify the women who are in the below poverty line (BPL) and give them the above said amount per month. (b) Gas Cylinder at Rs. 500/ - also should be given to the women who are living below poverty line. (c) Free travel to women in TSRTC buses across the Telangana State. To implement this program effectively, Government must provide some 6 “Special Free Buses to Women” and allow them in these buses only and not in all TSRTC Buses, so that to some extent we can avoid financial losses to the TSRTC. According to a rough estimate, the RTC earns Rs 2,500 crore annually through women passengers. If the scheme is to be implemented, the Telangana Government will have to reimburse the same amount to the corporation which is reeling under accumulated losses of Rs 6,000 crore. It would be further better if income per annum criteria per women is followed for the implementation of this Scheme. 2. Rythu Bharosa: (a) Financial assistance of Rs. 15,000 per acre to farmers and Tenant farmers. This financial help should to be provided only to the small farmers (up to 5 acres) and marginal farmers (up to 2.5 acres). In order to avoid duplication only one i.e. either the owner of the land or the tenant farmer should be given only if he/she actually does the agriculture. One possibility involves using the possession of Loan Eligibility Cards (LECs) issued under the Land Licensed Cultivators Act of 2011 that entitled tenants to credit, insurance, and subsidies, as an eligibility criterion for receiving the benefits to the tenant farmers under Rythu Bharosa Scheme. (b) Rs. 12,000 to Agricultural Labourers per year. (Agricultural labourers means those who earns major part of their income from agriculture as their livelihood). Government must identify these people on basis of their information provided in their white ration cards (Annual income and main profession). So that we can provide financial help who really deserves. 3. Gruha Jyothi: (a) 200 units of free electricity to all the households. This is a herculean task, especially when already Telangana White Paper on Power declared a total debt of Rs. 81,516 crores (as on 31/10/2023). (b) Telangana State Electricity Discoms are reeling under more than Rs. 85,000 crore debt. Hence, Government should reduce the electricity consumption units’ limit to 100 and also apply BPL Criteria. 7 4. Indiramma Indlu: Under this scheme, (a) Congress promised 250 sq. yards plot for all Telangana movement fighters. (b) House site and Rs. 5 lakhs for people not having their own house. This is estimated to burden the State exchequer of about Rs. 9,202 crores. Hence, once again BPL criteria should be applied. 5. Yuva Vikasam: This scheme is for the youth of the state. It includes: a) Vidya Bharosa card worth Rs. 5 lakhs for students. (b) Setting up Telangana International Schools in every Mandal The students who got selected under the Yuva Vikasam Scheme will get a Vidya Bharosa Card. Through this card, students will get Rs. 5,00,000 as financial assistances for their education. This scholarship amount will be given to the students of Telangana International Schools. I opine, this financial assistance should be provided to all the students irrespective schools, caste and creed based on merit/talent. 6. Cheyutha Scheme Telangana: Under this Scheme: (a) Health Insurance up to INR 10 lakh for elderly citizens (b) Pension of INR 4000 to elderly poor citizen will be provided. This is estimated to cost about Rs. 40,000 crores a year. Economically weaker sections should be given, so that only deserved people will be benefitted. 7. Identifying The Financial Leakages in The Administration: Former Telugu Desham Government under NTR leadership to avoid unnecessary financial wastage took a dare step to dissolve State Legislative Council and Corporation Chairman posts. The leaders in power must realise that they are the servants of the public and not the bosses, as Chief Minister Sri. Revanth Reddy said in several occasions. 8. Political Leaders Must Be a Role Model to the Public: Today, people are hating the leaders because most of them are corrupted and criminals. So, the political leaders must introspect themselves and try to be a role model to the people. 8 To conclude, As the Chief Minister Mr. Revanth Reddy said on the floor of the Legislative Assembly, welfare schemes should be implemented in the case deserved only. Development of Telangana State in all spheres must be the first aim of the present Congress Government. First of all, their responsibility is to adhere to financial discipline and avoid financial wastage, live a simple life by avoiding pomp and glory and to serve the people impartially. Let the Telangana State become No. 1 in India and a model for many countries in the world. 9 References: 1. Amartya Sen: What China Could Teach India, Then and Now: The Citigroup &Asia Society Global Issues Series. 2. How to balance welfare and economic growth by Li Yiping (China Daily), Updated: 2016-01-22 09:27. 3. Indian National Congress (INC) Telangana Pradesh Congress Committee-Assembly Elections – 2023: Abhya Hastham (Manifesto). 4. Telangana Rythu Bharosa 5. Telangana Yuva Vikasam Scheme 6. White Paper on the Financial Situation of Telangana State – Released by Government of Telangana, December, 2023 7. https://www.thehindubusinessline.com/news/national/telangana-govt- releases-funds-for-key-schemes/article67637555.ece 10