The economics and art of giving

With polls in Tamil Nadu approaching, the 'investment or freebie' debate, as part of the overall development question, is likely to resume. Aditi Phadnis writes

- Aditi Phadnis

Microwave ovens? Induction cookers? Air fryers? MacBooks?

As Assembly elections in Tamil Nadu approach (likely April-May 2026), speculation has begun in the state, which is known for distributing election freebies: What will it be this time? The answer could well be: None of the above.

Government officials are measured in their responses. "Old-age pension might be doubled," said a member of the Indian Administrative Service (Tamil Nadu cadre), posted in Delhi. "It is ₹1,200 a month now and it is a social-security measure." He acknowledged the "complicated logistics" in distributing pressure cookers, mixies, colour TVs, and the like.

Tamil Nadu might have decided to opt for cash in the bank, using direct benefit transfer (DBT) for the 2026 Assembly elections. But in the past, almost every Assembly election had led to a deluge of freebies for voters, beginning with 1991, when J Jayalalithaa promised colour TVs in all panchayats (she ran into trouble later due to corruption charges in the procurement of 40,000 TV sets and was investigated for it). But picking up where she left off, her successor, M Karunanidhi, in 2006 offered colour TVs to all households holding the ration card. Among other promises were free gas stoves with a gas connection. In 2011, Karunanidhi offered either a free mixie or grinder to ration card holders. Jayalalithaa did one better, offering both, plus a fan, to each woman in the state, laptops to Class 11 and 12 students, four free sets of uniforms, and a pair of shoes for school children. Free houses of 300 square feet for 300,000 families below the poverty line, 60,000 cows for 6,000 families, and ₹50,000 as wedding assistance for women with diplomas were included in the manifesto of the All India Anna Dravida Munnetra Kazhagam (AIADMK).