The recent controversy over Vijay-starrer Sarkar , triggered by certain scenes that were critical of the culture of freebies in the State, has sparked a debate on the politics of subsidies in Tamil Nadu.
The development should not come as a surprise in a State that has had a long tradition of welfarism. It was Tamil Nadu that showed the way to other States on at least two welfare schemes – the mid-day meal programme and social security or old age pension.
An information guide, published by the Director of Information and Public Relations in February 2017, gives an indication of the significance of the welfare state in Tamil Nadu. The guide runs to 585 pages, covering a host of welfare schemes being implemented by 31 government departments. The State has a wide variety of welfare schemes, ranging from the provision of bicycles free-of-cost to students, free rice through PDS to about 1.8 crore families and marriage assistance schemes to free bus passes for senior citizens living in Chennai.
Between 2006 and 2016, successive governments – of the DMK and the AIADMK – took the policy on subsidies to a whole new level. While the DMK government (2006-11) distributed 1.64 crore colour TV sets free-of-cost at an outlay of ₹3,687 crore, the AIADMK regime, between 2011 and 2016, gave away 1.75 crore fans, mixies and grinders at a cost of ₹7,686.21 crore. Though the film seemed to advocate an outright rejection of freebies, economists, commentators and policy-makers do not share that position.
Emphasising the need for distinguishing schemes aimed at providing essential services or commodities from those that offer consumer durables, Paul Appasamy, veteran economist, says the former has made a meaningful difference to the quality of life of the poor, whereas the latter has often received public attention, for all the wrong reasons, as the quality of goods provided has been poor at times. He is for the adoption of direct benefit transfer so that deserving persons are covered, and the scope for leakages and diversion reduced. He underlines that it is due to the State’s track record in the implementation of welfare schemes that it has become known for its extremely low rate of multidimensional poverty, which covers three parameters – health, education and living standards.
R. Thangathurai, commentator, recalls that when former Chief Minister M.G. Ramachandran launched the mid-day meal programme in 1982, the move came in for derision. But the programme eventually became a big hit. Mr. Thangathurai does not view the colour TV scheme as one of wasteful expenditure as, he argues, television has become a powerful instrument of information and entertainment to the lower strata of society. Strongly defending the schemes on bicycles and laptops for students, G. Palanithurai, former professor at the Gandhigram Rural Institute, , says they have empowered students, especially girls.
K.R. Shanmugam, Director, Madras School of Economics, points out that the State government is providing subsidies to industrial units too, and hence, the issue should be considered in its totality. Several policy-makers have hinted that it is time for the State to shift to a targeted approach to providing subsidies.
