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As the Congress stormed to power in Karnataka, commentators felt the five big freebies it had promised had a part to play. But already, in the very first Cabinet meeting, the State government has been forced to add some riders to its election guarantees as it recognises the financial implications.
In the run-up to elections, the Congress had given five major guarantees — ₹2,000 monthly assistance to women heads of all families ( Gruhalakshmi), 200 units of power to all households (Gruhajyoti), ₹3,000 every month for graduate youth and ₹1,500 for diploma holders (Yuvanidhi), 10 kg rice per person per month( Annabhagya) and free travel for women in the State public transport buses (Uchita Prayana).
Free power
The party may be walking the talk, but in a modified way. The Gruhajyoti guarantee is said to be extended only to those who use 200 or fewer units of power in a month, and not to every household.
Similarly, the Uchita Prayana for women is only effective for journeys on regular bus routes for everyday commuters; it does not apply to trips on semi-deluxe or deluxe buses. This is also applicable to only women domiciled in the state.
As for Yuva Nidhi, the unemployment benefit, only degree holders who graduated in FY 23 will receive ₹3,000 per month, and that too for a maximum of two years or sooner if they find a job. The Annabhagya promise too is restricted only to Below Poverty Line(BPL) families.
Even as the BJP lost no time in taunting the Congress for “changing its colours” just a day after coming to power, government sources said ‘please wait till full clarity is provided in the next few days.
Siddaramaiah, who was sworn in as Chief Minister on Saturday, and has presented 13 state budgets in the past, is well aware of the financial burden on the exchequer.
Cost of freebies
The total cost of all the freebies will amount to ₹65,082 crore a year, according to analyst estimates. ₹42,960 crore for Gruhalaksmi, ₹15,498 crore for Gruhajyoti, ₹5,728 crore for Annabhagya, and ₹896 crore for Yuvanidhi, will be the cost breakup. This is nearly 20 per cent of the State budget and the total fiscal deficit would form 5.38 per cent of the Gross State Domestic Product.
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