Welfare State!

Any economist would cringe at the sheer impossibility of fulfilling poll-promises by political parties. Such pre-poll sops and subsidies have been challenged at the Apex courts, which could do nothing and had to succumb to the political parties. 

Some of the promises could be merely administrative, like job reservation or renaming a community as a backward one. But most other offers have a deep drain on the exchequer, as the governments have to balance these doles with additional revenues. The revenues could be from increased investment and productivity,  higher taxation or the sale of assets.

The CM of West Bengal released the poll manifesto today, promising delivery of rations at ‘duarey,’ or doorsteps of her citizens. The rations must reach nearly ten crore people in two crore households, which is easier said than done. Perhaps, she can employ almost all the unemployed youths in the state in the ration distribution system. 

The income scheme announced covers 1.6 crore families, each getting Rs.500 per month (liability Rs. 9600 crores/annum). The SC/STs will get Rs.1000 a month. According to 2001 Census the population is 18,452,555 (cost Rs.21,600 crores).

Krishak Bandhu scheme has been enhanced from the present Rs.6000 to Rs.10000 per acre per annum. West Bengal has 56 lakh hectares or 138 lakh acres. (http://matirkatha.net/wp-content/uploads/2016/07/West-Bengal-Agriculture-an-Overview.pdf) An additional Rs.4000 per acre would require Rs.5520 crores. Under the Khadya Sathi scheme, 1.5 crore families will get free rations at their doorstep. I guess 35 kgs of rice and wheat per family per month. A thumb rule of Rs.20 per kg subsidy would cost the government Rs.1050 crores.

Besides these, the Swasthya Saathi of Rs.5 lakh per family per year hospitalisation expenses will include 1.5 crore families. If only 10% of families opt for the scheme, it would cost the government a whopping Rs.75,000 crores.

Then there are other running schemes, Kanya Shree, Shilpi Shree, doles for clubs, Puja committees, the list long and endless. My friends, economists, could educate me better. Added to these, there are borrowings, both secured and from the open market, which require more than Rs.25000 crores to be paid annually as interest!

None can dispute that our Chief Minister is kind and had a great concern for the poor and the oppressed, which is laudable. However, The Government must pay some serious attention to raising resources as well, without milking just the middle class. 

Sampath Kumar

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