We need fiscal prudence during elections, Pg7

Key Highlights:

• Tamil Nadu CM M.K. Stalin disbursed ₹5,000 to 1.31 crore women under the Kalaignar Magalir Urimai Thogai (KMUT) scheme, including ₹2,000 as 'special summer assistance'.
• The Tamil Nadu government incurred an expenditure of ₹6,550 crore due to this decision.
• Other instances of pre-poll bonanzas include the Pradhan Mantri Kisan Samman Nidhi by the BJP-led Central government and the Mukhyamantri Majhi Ladki Bahin Yojana in Maharashtra.
• AIADMK general secretary Edappadi K. Palaniswami promised ₹2,000 per month to women heads of ration card-holding families if elected.

Detailed Insights:

• The disbursement by the Tamil Nadu government occurred amidst accusations against the Centre regarding the non-release of funds, including ₹3,548 crore under the Samagra Shiksha scheme.
• The Goods and Services Tax (GST) rate rationalization is expected to cause a revenue loss of ₹10,000 crore to Tamil Nadu this year.
• The Pradhan Mantri Kisan Samman Nidhi, offering ₹6,000 a year to farmers, was launched shortly before the 2019 Lok Sabha elections.
• The Mukhyamantri Majhi Ladki Bahin Yojana in Maharashtra, modeled after a similar scheme in Madhya Pradesh, involved releasing two installments before the state elections.
• The Mukhyamantri Mahila Rojgar Yojana was launched in Bihar before the Assembly elections, transferring ₹10,000 each to 75 lakh women.
• The article emphasizes the need for efficient and targeted administration of welfare schemes with measurable outcomes and fiscal discipline, rather than their proliferation as entitlements.

Key Concepts Involved:

• Fiscal Prudence: Judicious management of public finances, especially during politically sensitive times like elections.
• Universal Basic Income: A regular, unconditional cash payment provided to all citizens, regardless of their income or employment status.
• Pre-poll Bonanza: The practice of governments announcing or implementing populist measures and welfare schemes shortly before elections.