Party manifestos and Telangana's financial health

When it comes to manifestos, the lack of clarity on financial strategies raises concerns about the long-term sustainability of the state, emphasising a critical intersection between social engineering promises and fiscal responsibility.

As the 31.7 million voters of Telangana gear up for the assembly polls on November 30, the Bharat Rashtra Samithi (BRS), the Congress, and the Bharatiya Janata Party (BJP) are vigorously campaigning, and unveiling manifestos laden with promises.

These pledges exhibit a fundamental dichotomy: promises with immediate social impacts and those carrying financial ramifications. These parties struggle to elucidate how they plan to secure the finances required to manage the serious implications on the state's fiscal health. While the manifestos resonate with voters by offering impactful assurances, the lack of clarity on financial strategies raises concerns about the long-term sustainability of the state, emphasising a critical intersection between social engineering promises and fiscal responsibility.

Manifesto promises and social implications

The Congress in Telangana has pledged a series of commitments, including conducting a caste census and raising reservations for Other Backward Classes (OBCs) to 42 per cent, as well as increasing Scheduled Tribes’ (STs) reservations to 12 per cent. The party also vows to sub-categorise Scheduled Caste (SC) and ST categories within the state, and boost reservations for backward classes in local bodies to 42 per cent. Congress leader Rahul Gandhi, advocating for a nationwide caste census, actively underscores these points during public rallies to attract the significant Backward Class (BC) voter base.

In contrast, the BJP has promised a BC Chief Minister, and the immediate formation of a committee for the sub-categorization of the SCs, with Prime Minister Narendra Modi reiterating this commitment at a public meeting organised by the Madiga Reservation Porata Samithi (MRPS) on November 11. The BJP manifesto outlines a commitment to eliminate 4 per cent reservations for religious minorities, redistributing them to other BC castes, reminiscent of what was done in Karnataka. Meanwhile, the BRS has committed to increasing ST reservations.

The BC youth, already agitated due to the implementation of 10 per cent Economically Weaker Section (EWS) reservations without proper study, may find the Congress' assurance of increased reservations appealing, particularly in light of recent constable recruitments where the EWS cutoffs were lower than those for the STs.

While these promises may not directly impact Telangana’s finances, they hold significant sway over the social fabric, serving as a tool for social engineering. As the state's formation is rooted in emotions, these promises are poised to have profound implications on the voting process.

Promises and…

The manifestos of these three parties reveal diverse governance approaches. The Congress promises six guarantees, featuring the ‘Mahalakshmi’ scheme for women offering ₹2,500 per month, gas cylinders for ₹500, and free bus travel. The ‘Rythu Bharosa’ focuses on farmers with ₹15,000 per acre and agricultural benefits. The ‘Gruha Jyothi’ ensures free electricity, while the ‘Indiramma Indlu’ provides housing for Telangana movement fighters. The ‘Yuva Vikasam’ targets youth with educational support, and the ‘Cheyutha’ guarantees pension and insurance for senior citizens.

The BRS pledges the 'KCR Bheema' insurance of Rs 15 lakh and the 'Telangana Annapurna Scheme' for fine rice. The Rythu Bandhu's farmers' insurance increases to ₹16,000 per acre, with subsidised cylinders for Rs 400 for BPL families.

The BJP emphasises on a comprehensive investigation into the irregularities under the BRS government’s rule, pro-farmer measures, health initiatives, and economic revival. The manifesto includes the Pradhan Mantri Fasal Bima Yojana, minimum support price for paddy, and infrastructure plans. Surprisingly, the BJP assures four free cylinders yearly for poor women.

Varied strategies for women, farmers, youth, and senior citizens reflect each party's ideologies and policy priorities.

…its implications

The state debt has surged fourfold since 2014, escalating from Rs 75,577 crore to nearly Rs 3.21 lakh-crore. The Rythu Bandhu scheme alone demands over Rs 20,000 crore if either the BRS or the Congress forms the government, with an additional expenditure of nearly Rs 17,000 crore on the Dalitha Bandhu and Rs 5,000 crore for pensions. Regardless of which party comes to power, the state further necessitates over Rs 50,000 crore to fulfil the promises outlined in the manifesto.

These commitments pose significant implications for Telangana’s financial health. While the state holds the potential to generate revenue through state GST, sales tax, stamps and registration duty, and state excise policy, the burden on the middle class is inevitable, and may contribute to inflation.

The parties grapple with articulating plans for securing finances, raising concerns about the state's fiscal sustainability. The promises, aimed at social engineering, particularly through reservations, add a layer of complexity to the voting process. As the manifestos resonate with voters, the lack of financial clarity highlights a critical intersection between social promises and fiscal responsibility, underscoring the challenges in balancing immediate societal impact with long-term financial health.

G Kiran Kumar, a PhD research scholar at the Department of Political Science, University of Hyderabad, is National President, All India OBC Students Association.

Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.