Will the politics of populism or “revdri culture” impact the voting pattern of the Maharashtra Assembly Elections 2024? Will the masses be swayed away by the assurances made by the political parties? Can the state reeling under the huge debt burden of more than Rs 7 lakh crore take more loads than promised to lure more votes? Can a state with a budgeted fiscal deficit of Rs. 1,10,355 crore for FY2025 go for more freebies?
These questions have become more significant after the BJP stalwarts, including Prime Minister Narendra Modi, announced a series of populist schemes before the Maharashtra Assembly Elections 2024.
Freebies Included In Budget
Considering the forthcoming election, Maharashtra Finance Minister Ajit Pawar presented a mammoth Rs. 6,12,293-crore budget, which was much beyond the limit of the state government, as suggested by some experts. The budget included freebies like three free LPG cylinders per year for every BPL family, free electricity for the farmers, and Rs. 1,500 a month for women under the “CM Ladki Bahin Yojana.”
It sent strong signals to those who believed in fiscal prudence and economic management rather than populist politics. The reason can be gauged by the fact that the Ladki Bahin Yojana alone could
Chief Minister Eknath Shinde Ups Ante
Upping the ante, Chief Minister Eknath Shinde announced an additional amount of Rs. 2,100 per month for women under this scheme.
The Congress joined the fray by announcing Mahalaxmi Yojana, a scheme under which it promised to pay Rs. 3,000 to every woman.
Economy At Point Of Collapse
This competitive populism has come at a time when the state’s economy is in shambles. Maharashtra’s projected revenue deficit stands at a whopping amount of Rs.20,151 crore, while it has a fiscal deficit of Rs. 1,10,355 crore for FY25. Its fiscal deficit almost doubled from 1.9% of GDP in FY23 to 2.8% of GDP in FY24. Economists have expressed concerns about the rising fiscal and revenue deficit.
Maharashtra Pays Interest Of Rs. 46,000 Crore
The significance of Ladki Bahin Yojana incurring an expenditure of Rs. 46,000 crore can be understood by the fact that Maharashtra will have to pay an interest of Rs.48,578 crore every year for the loan of Rs 7,11,278 crore.
CAG Warns State
Earlier in its report submitted in 2023, the CAG exhorted the state government to “monitor and manage its debt levels to ensure long-term fiscal stability by adopting remedial measures to rationalise expenditure, explore further sources, expand revenue base and invest in revenue-generating assets.”
PM Modi Against ‘Revdi Culture’
It is interesting to note that PM Modi earlier vehemently opposed the politics of populism, what he called “revdri culture”. Targetting his political opponents, he accused them of promising freebies in exchange for votes. PM Modi went on to caution the people against the “revdi culture”, calling it “very dangerous” for the country.
While inaugurating the Bundelkhand Expressway on July 17, 2022, PM Modi said, “Today in our country, attempts are being made to collect votes by distributing free revdis. This revdi culture is very dangerous for the development of the country.”
Narendra Modi added further, “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.”
Now, his party is indulging in this “revdi culture”. The moot question is whether the people would bite the bullet. Will the masses vote for freebies? The question is yet to be answered.
