Karnataka: Politics of ‘Guarantees’
Vasanth N K
THE Congress party's "five guarantees" – promises made to the people of Karnataka in the run-up to the assembly elections – are believed to have been a main factor behind its emphatic victory. These five guarantees were named as "Annabhagya", "Gruhalakshmi", "Gruhajyothi", "Shakthi" and "Yuvanidhi". The political strategy employed by the Congress party in Karnataka, aimed at gaining and retaining the support of the people through the assurance of welfare measures, is commonly referred to as the "Politics of Guarantees."
The Congress party appears to be banking on this strategy in states that are scheduled for assembly elections in the upcoming months. Despite the BJP's leaders ridiculing such measures as "freebies that hinder development," the BJP itself is now compelled to adopt a similar approach. In Madhya Pradesh, the BJP government has initiated a programme to provide a Rs 1,000 transfer to all women.
Examining the implementation of the "five guarantees" in Karnataka can offer insights into this particular form of politics. It is important to closely analyse the specific details of the schemes being introduced, including the criteria and process for determining beneficiaries, the financial implications of the schemes, and the potential impact they will have on both the people and the political landscape. By gaining a comprehensive understanding of these factors, we can address the fall-outs of the "politics of guarantees." Such an approach will enable us to formulate measures that appropriately respond to this political phenomenon.
ANNABHAGYA
Annabhagya, one of the guarantees, is a straightforward scheme that already exists in Karnataka. It involves supplying free rice to Below Poverty Line (BPL) families. Under the scheme, the quantity of free rice supplied to BPL families has been increased from 5 kg to 10 kg per person per month, with a maximum of 30 kg per family.
Initially introduced by the Congress in 2013, the Annabhagya scheme was later discontinued and merged with the PM Garib Kalyan Yojana. However, in 2021, during the peak of the Covid-19 pandemic, the BJP-led state government reduced the rice supply to BPL families by 2 kg per person when merging it with PMGKY.
The proposed implementation of this scheme was scheduled for July 1, 2023, with an expected benefit for over one crore families in terms of food security. The estimated additional expenditure for the scheme is Rs 4,400 crore. However, the central government has been attempting to scuttle this initiative by refusing to provide rice from the Food Corporation of India (FCI), even on a payment basis.
In response to this move, the Congress and the CPI(M) organised demonstrations across the state on June 20, expressing their condemnation of the central government's actions to scuttle the Annabhagya scheme.
Several implementation issues have come to light regarding the Annabhagya scheme. One notable problem is the cancellation of many legitimate BPL cards under the pretext of cracking down on fraudulent cards. As a result, genuine BPL cardholders have been deprived of receiving their entitled food grains.
Additionally, challenges have arisen due to issues such as malfunctioning Aadhaar linking, food grain pilferage, non-functional distribution systems, and other related factors. These difficulties have further hindered the distribution of food grains to eligible individuals.
Moreover, it has been observed that a significant number of fraudulent BPL cards exist, adding to the complexity of the situation. However, specific measures to address these issues have not been proposed or outlined so far.
GRUHALAKSHMI
Gruhalakshmi is a promise made by the Congress party to provide a monthly assistance of Rs 2,000 to women. This is intended to empower women with little or no income. Even women who already receive widow pension, disability pension, and old age pensions are eligible for this scheme. However, while issuing detailed guidelines, several significant exclusions and restrictions have been placed, some of which are as follows: only one woman per household is eligible, with the senior-most woman considered the default beneficiary. However, the household has the flexibility to choose any woman as the beneficiary; the woman, her husband, or son should not be income tax or GST payees; women are required to apply through a designated web portal and provide necessary documents, including proof of identity, proof of address, APL/BPL ration card, bank account passbook with Aadhaar linkage, and PAN card; applications will undergo scrutiny, and if approved, the assistance amount will be directly transferred to the beneficiary's bank account; applications will be approved based on self-declaration, and if any false information is discovered, the disbursed amount must be reimbursed, and legal action may be taken.
The scheme has faced criticism due to its unreasonable exclusions and the potential for a large number of genuine beneficiary women being left out. The process of obtaining all the necessary documents and applying through the web portal is a difficult and expensive task for many women. These exclusions and the complex application process indicate a backtracking from the pre-election guarantee of including all women.
It has been pointed out that it would be sufficient to identify genuine women beneficiaries and process payments using only the ration card and bank passbook. The scheme was initially set to accept applications from June 15, with the aim of rolling out the programme on August 15. However, technical issues have led to a postponement of the start date for a few days.
GRUHAJYOTHI
Gruhajyothi aims to provide 200 units of free electricity per month to all domestic consumers. However, the published guidelines impose several restrictions and conditions.
To avail of this benefit, applications must be submitted on the seva sindhu web portal along with relevant documents between June 15 and July 15. This scheme is applicable to occupants of all types of households, including owned, rented, and leased properties. However, different categories require different sets of documents.
If the average consumption in the last year plus 10% is below 200 units, no bill will be generated. On the other hand, if it exceeds 200 units, the full bill will be generated, meaning those who exceed the 200 units limit will not receive any benefits.
To qualify for Gruhajyothi, the basic requirement is to have an ESCOM customer (RR) number linked with Aadhaar and clear all dues up to June 2023. Renting or leasing households must link their Aadhaar with RR No. or provide a rent/lease contract agreement, or provide proof of identity and residence.
For occupants of new households, the number of free units will be limited to 58. For households classified as below poverty line (BPL) and covered under pre-existing schemes like Bhagyajyothi, the free units will be limited to 75. However, this is subject to clearance of all dues up to June 2023 for any usage exceeding 75 units.
Current data suggests that out of 2.16 crore domestic consumers, approximately 2.14 crore consumers have an average monthly consumption of less than 200 units. Only two lakh customers exceed the 200 unit threshold. The necessity of requiring an application for this scheme has been questioned, as ESCOM possesses all the necessary data, and all categories of households are eligible for the scheme. The imposition of limits on the number of free units for BPL households has faced severe criticism for being discriminatory.
Based on current estimates, it is projected that around 2.14 crore consumers will be eligible for the scheme. These consumers have an average monthly consumption of 53 units, resulting in an estimated annual bill of approximately Rs 13,000 crore. The government is required to provide subsidies to ESCOMs to cover this amount.
Meanwhile, electricity supply companies, known as ESCOMs, have recently announced a huge increase in electricity rates, reaching up to 70 paisa per unit, with retrospective effect from April 2023. Although this hike was approved by the Karnataka Electricity Regulatory Commission, the implementation was temporarily put on hold by the BJP government due to the elections. However, many consumers have now received bills reflecting an increase of up to 50 per cent, leading to widespread public outcry against this decision.
SHAKTHI
Shakthi is a scheme that ensures free travel for all women on government-operated buses. Presently, any identification document that establishes residency in Karnataka is sufficient for availing this benefit. However, women are required to apply on the Seva Sindhu portal and submit proof of residence to obtain a Shakthi Smart Card. Once eligible, women receive their smart card, they can enjoy free travel on all local and long-distance non-AC, non-luxury buses operated by the government-owned RTC (Red buses) within Karnataka. A zero-value ticket will be issued for record-keeping purposes.
The scheme was launched on June 11, and on the first day, more than five lakh women enthusiastically availed themselves of the free travel facility.
It is estimated that approximately 18,600 buses will be open for free travel, benefiting around 41.80 lakh women annually. This initiative is projected to cost the state around Rs 4,050 crore each year. The government will reimburse this cost to the road transport corporations (RTCs). However, the scheme faces limitations due to the lack of buses available on interior and rural routes across most districts. This issue is not confined to underdeveloped areas but is also prevalent in developed districts such as Dakshina Kannada, Udupi, and Shivamogga, where private transport dominates the market due to collusion between RTCs/government and the private bus lobby.
Private bus operators, as well as other modes of private transport such as taxis and auto-rickshaws, have expressed concerns about the negative impact on their business in areas where both government and private transport options are available. They have demanded a similar scheme to be implemented for private transport as well.
YUVANIDHI
Yuvanidhi was initially designed to provide an unemployment allowance for educated youth. Graduates were promised Rs 3,000 per month, while diploma holders were entitled to Rs 1,500 per month for a duration of two years. However, the issued guidelines have restricted the scheme to only those who graduated in 2023 and have been unable to secure employment for a period of 180 days (equivalent to six months). Moreover, the scheme excludes individuals who have received any form of financial assistance from the government for self-employment, those currently receiving apprentice allowances, and individuals who have gained admission for higher education.
This limitations negate the essence of the pre-election scheme, which was initially presented as an unemployment allowance. To avail of the benefits, applicants must also apply through the Seva Sindhu portal, and considering the given conditions, the scheme will only be applicable after six months.
Estimations suggest that the scheme will incur a cost of approximately Rs 1,300 crore, considering that around 4.7 lakh graduates and 50,000 diploma students pass out each year.
This is a brief overview of the Congress party's "politics of guarantees" model. The BJP has criticised the "five guarantees" offered by the Congress at various stages, initially during the election campaign, labeling them as freebies. They have further attacked the guarantees by stating that they are merely poll gimmicks, alleging that the Congress will not actually implement them. Some, including segments of the middle class, corporate entities, pro-government media, intellectuals, and official economists, have echoed similar sentiments. They attacked these initiatives saying that freebies encourage laziness and noted that they would not want their taxes distributed to support such initiatives.
However, after the scheme details and rollout plans were announced, the BJP realised that their criticism of "freebies" could backfire. Consequently, they shifted their approach and launched a campaign claiming that the schemes were intended for everyone but included too many restrictions and exclusions. They accused the Congress of betraying the people. Additionally, the BJP has criticised the hike in electricity rates, which was approved during their own rule but kept hidden from the public. Regrettably, the JD(S) has also taken similar positions in this matter.
CHALLENGES FACED
The Congress party's "politics of guarantees" model represents a significant departure from the BJP's "politics of hate" approach. It has effectively brought real issues to the forefront, making it challenging for the BJP to resort to divisive tactics. The "five guarantees" have garnered enthusiasm among the people, particularly women, who have staunchly defended schemes like "Gruhalakshmi" and "Shakthi" against male chauvinistic attacks from various quarters.
The Congress has cleverly formulated these guarantees in a manner that requires minimal resources to cover a large population. All the other crucial and structural issues are being overlooked. The guarantees have created false hopes and fostered a blind belief that the Congress is pro-people and benevolent. Consequently, people's consciousness of the struggles needed to challenge neoliberal economic policies would turn blunt.
The Congress is unwilling to challenge or change neoliberal economic policies, which restrict public welfare spending and contribute to people's suffering. It has not shown a readiness to address bureaucratic hurdles, exclusions, and red tape that undermine the effectiveness of welfare spending under the guise of "targeting." The estimated cost for implementing all the guarantees is around Rs 59,000 crore, which will be reduced to approximately Rs 40,000 crore for the current fiscal year, considering the rollout timeline. This amount represents less than 15 per cent of the state budget.
The Congress is likely to employ "targeting" measures to minimise expenditure on the guarantees and only spend enough to convince people of their sincere implementation until the Lok Sabha elections. After that, bureaucratic obstacles may be allowed to curtail spending on these schemes to the bare minimum.
How do Left and Democratic forces, in general, and the CPI(M) in particular, plan to tackle the challenge of the "politics of guarantees"? They have defended and supported the underlying intention of these guarantees. In response to attacks on the guarantees, they have countered by highlighting the relatively low cost of these initiatives compared to the benefits provided to big businesses through various concessions. They have also emphasized the disproportionate burden of indirect taxes borne by the masses compared to the direct taxes paid by the middle class and wealthy individuals. Additionally, they have argued that investments in the well-being of the masses help generate demand and contribute to economic development.
To address the challenges posed by the "politics of guarantees," the Left and democratic forces, including the CPI(M), plan to undertake the following actions:
1. Offer constructive suggestions to simplify procedures and help people navigate bureaucratic hurdles to avail the benefits of the guarantees.
2. Launch struggles against unjustifiable restrictions and exclusions, aiming to expand the scope of the guarantees.
3. Educate people that the guarantees are not an act of benevolence from the Congress but rather a modest relief to address the hardships caused by the anti-people neoliberal policies initiated by the Congress itself.
4. Raise awareness that the "five guarantees" are just a small part of the comprehensive social security measures needed to ensure a dignified life for all citizens, as guaranteed by the Constitution.
5. Expose the BJP's double standards and contradictions regarding guarantees, while working not to cede opposition space to them.
6. Highlight that the sustainability of these guarantees depends on challenging the neoliberal framework and safeguarding fiscal federalism.
7. Continue to raise voice and organise struggles for the rights and livelihoods of various sections of society, including workers, peasants, and agricultural workers.
8. Monitor the government's payment of subsidies to ESCOMs and RTCs to compensate for their income loss resulting from the implementation of welfare schemes. Organise struggles to prevent attempts to privatise these essential services under the pretext of financial strain.
9. Remain vigilant against any attempts by the Congress government to review and curtail existing welfare schemes, ensuring organised resistance to protect these programmes from being undermined or affected.
By making these efforts, the Left and democratic forces aim to address the challenges posed by the "politics of guarantees" while working for safeguarding the rights and well-being of the people.
