The Hindu Business Line : Political parties in AP come up with slew of welfare schemes

Hyderabad, Oct. 14 It is raining promises in Andhra Pradesh as major political parties announce mouth-watering schemes, outwitting each other. Experts, however, feel that the promises would have a bearing on the State’s economy.

Triggering a war of promises, the Congress announced last week that it is going to revive the Rs 2 a kg of rice scheme for all white card holders.

Alleging that the Congress got a scent of a similar promise being planned by it, the Telugu Desam Party, whose founder late N.T. Rama Rao had originally devised the scheme, said it would give quality rice at Rs 2 a kg if voted back to power.

More promises

The TDP then followed it up with two more tranches of promises that are part of its ‘alternative economic policy’. Major promises in this policy are, housing as a fundamental right, waiver of cooperative loans and nine-hour free power supply to the farm sector.

Telangana Rashtra Samithi (TRS), which has been demanding statehood for the Telangana region, said it would give free power for 12 hours in the ‘new State’.

Lok Satta Party, led by the former bureaucrat Dr Jayaprakash Narayan, too joined the fray by announcing ‘free healthcare for all’ promise.

“The programme that could cost Rs 2,500 crore, guarantees hospital care to every citizen as a matter of right irrespective of his or her income status,” Dr Narayan said on Wednesday.

Opportunity cost

While the political parties go on announcements spree, experts warn that the promises, if translated into a reality after next polls would have an adverse impact on the State’s economy.

Prof S. Mahendra Dev, noted economist and Director of Centre for Economic and Social Studies (CESS), said one should consider the ‘opportunity cost’ of such schemes. (Opportunity cost is the value of something the money could have created in the option that is forgone to make way for another option.)

As it is Andhra Pradesh is among the lowest spenders on health and education. The State recorded the lowest growth in employment generation. “The proposed schemes would further impact this,” he felt.

He, however, pointed out that there was no correlation between the poll promises and the outcomes.

Not productive

Prof K.R. Chowdhary, noted agricultural scientist, felt that the populist promises were aimed at securing votes. “Whoever comes to power needs to spend a lot of money on these schemes that have no productive purpose,” he commented.

“We need to device schemes that involve people in the productive process. This will improve their incomes, leading to better living conditions,” he said.

He alleged that the so-called welfare schemes were aimed at making people permanently dependant on the Government.

More Stories on : Politics | Social Welfare | Economy | Andhra Pradesh

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Political parties in AP come up with slew of welfare schemes