Parties Must Beware Lure of Cash Transfers

After 27 years, the Bharatiya Janata Party (BJP) has regained office in Delhi.

- Shabana Mitra

Among the factors that may have drawn voters to the party is the party's promise to continue with the welfare schemes of the Aam Aadmi Party (AAP) government and implement new ones, including certain targeted cash transfers. But the new government must be cautious here; in the enthusiasm to deliver on election promises and show that it can do welfare better than the AAP, it could go overboard.

With a clear majority for the BJP, it will have the option to cherry-pick welfare schemes. The AAP government had many, and the new government will find it difficult to change strategy drastically and withdraw these totally. The poll promises of all three main political parties also had different freebie proposals, and more ideas of what to give to the people, and the BJP can now pick from these as well.

But the new government will do well to question if the freebies have been effective.

The first AAP government focused on education and health by improving the government school system in Delhi and creating mohalla clinics. In its second term, it lost track of these objectives, and amid the continuous battle with the Union government, its focus shifted away from people's needs. To compensate, it started rolling out more and more freebies; its election promises were no different. In the competition to give more, the BJP and the Congress also promised endless cash transfers.