What look like freebies are part of a welcome new social contract

livemint.com:

PM-Kisan, run by the Centre, was announced just before the 2019 general elections. Before the Karnataka polls, the Congress party had made five promises: of 200 units of free power to all households, ₹2,000 monthly assistance to every woman head of a family, 10kg of rice, an unemployment allowance for the youth and free travel for women on public transport buses. The Congress won power in that state.

Since then, Madhya Pradesh has announced ₹1000 per month to women, to be raised to ₹3,000 later. Rajasthan has also declared a series of schemes, such as pension of ₹1,000 per month for all elderly, widowed and disabled persons that will be raised 15% annually, additional entitlement of 25 days per rural family for work under MGNREGS, and an urban employment guarantee, along with subsidized gas cylinders. Chhattisgarh has also launched several cash transfer schemes, including funds for skill development to women.

Telangana has restarted the farm loan waiver scheme and has its own cash transfers for farmers. In all these states, concerns have been raised on the fiscal impact of these schemes. These resonate with Prime Minister Narendra Modi’s lament on the use of “revdis" or ‘freebies’ for vote seeking, which he called bad for development.

Fiscal worries over public expenditure for social protection are not new either. The enactment of MGNREGA and the National Food Security Act (NFSA) were also preceded by such debates. Even though both have exceeded the spending projected back then, the social safety net they offer is essential.