The rising cost of poll promises
The AIADMK is promising more freebies instead of promoting fiscal prudence
Published - January 20, 2026 12:39 am IST T. Ramakrishnan
With Tamil Nadu going to Assembly polls in April-May, AIADMK general secretary Edappadi K. Palaniswami recently made some promises. He announced an expansion of the monthly assistance scheme for women, promising to provide ₹2,000 per month to the woman head of every ration card-holding family; and the expansion of the free travel scheme, which is currently limited to women, to cover men as well. Mr. Palaniswami termed the promises as the “first dose”, with more to be made in the manifesto.
In response, the Dravida Munnetra Kazhagam (DMK) regime deployed two Ministers — S. Regupathy and T.R.B. Rajaa — to criticise Mr. Palaniswami for having “copied the successful schemes” of the government. Mr. Rajaa, who is also a member of the DMK’s election manifesto committee, said that the country would turn its attention to the DMK’s manifesto once it was out, “as was the case in the past.” Indeed, Mr. Palaniswami’s announcement may prompt the DMK to come out with many other assurances at a time when the State government is struggling to sustain its welfare and populist schemes. As the Election Commission of India is expected to announce the poll schedule in late February, the incumbent government has time to launch more populist schemes.
If the AIADMK chief’s two offers are implemented, it would mean an additional burden of ₹40,000 crore annually. In other words, these two components alone would be around 11% of the projected revenue receipts of the State for 2026-27. There is a qualitative difference between the DMK’s Kalaignar Magalir Urimai Thittam, which provides ₹1,000, and the AIADMK’s proposed scheme, Kula Vilakku Thittam, which will offer ₹2,000. While the first scheme covers 1.3 crore people because of some conditions, the second will include 2.23 crore. In addition, this year’s estimated expenditure for the free bus ride is ₹3,600 crore. Its expanded coverage would double the subsidy bill. eye to Lok Sabha elections
For about 15 years, until the mid-2000s, the two parties had a different approach while they were in power. As economic reforms were unveiled in 1991, the AIADMK and the DMK favoured greater space for the private sector, shrinking the role of the government and its enterprises, and experimenting with the gradual reduction of subsidies. In 2002-03, the AIADMK regime led by Jayalalithaa withdrew free power supply for farmers and fixed a two-slab pricing system for rice supplied through the public distribution system. However, she rolled back these schemes when her party performed disastrously in the 2004 general elections.
Since then, the DMK and the AIADMK have been aggressively resorting to competitive populism. In 2006, the DMK said that it would reduce the price for rice supplied through PDS uniformly to ₹2 per kg, distribute free colour television sets to all ration cardholders, and waive off crop loans taken through cooperative societies for all categories of farmers. In September 2008, the regime led by M. Karunanidhi cut the price of rice further to ₹1 per kg. In 2011, the AIADMK government went one step further by providing 20 kg of rice free for all ration cardholders. It also supplied a table fan, a mixer, and a grinder as freebies to every woman covered by the ration card system. In May 2016, Jayalalithaa retained power. Since then, about 2 crore domestic consumers of electricity have been getting free power up to 100 units bimonthly. In 2021, the DMK promised a monthly basic income scheme for women. Those who claim to be alternatives to the Dravidian majors are also no exception to the freebies culture, which seems to have become an all-India phenomenon.
Mr. Palaniswami has not committeed to the restoration of the Old Pension Scheme (OPS) for State government staff. Yet his promises have caused concern among those who follow the State’s finances, which are under strain owing to several domestic and international events. Besides, the DMK regime announced the Tamil Nadu Assured Pension Scheme, effective January 1, as a partial fulfilment of its electoral promise to revert to the OPS. This will, at least initially, further cause stress to the State’s finances.
With his promises, the AIADMK leader appears to have strengthened the hands of advocates of freebies when he should have promoted the agenda of fiscal prudence instead. This is something Tamil Nadu needs.
T.N. emerges top borrower in 2024 for the fourth successive year, says ICRA report
The State government plans to borrow ₹1,55,584.48 crore during 2024-25 and the outstanding debt as on March 31, 2025 will be ₹8,33,361.80 crore, according to T.N. Budget for 2024-25
Published - April 01, 2024 12:25 am IST - CHENNAI
Tamil Nadu ended fiscal 2023-24 with gross market borrowings at ₹1,13,000 crore and emerging the top borrowing State for the fourth successive fiscal year, according to ratings firm ICRA Limited.
Maharashtra stood next with borrowings of ₹1,10,000 crore, Uttar Pradesh at ₹97,700 crore, Karnataka at ₹81,000 crore, Rajasthan at ₹73,600 crore and Andhra Pradesh at ₹68,400 crore, ICRA said in its report.
The States, including Tamil Nadu, borrow from the market by auctioning bonds known as State Development Loans (SDL).
As per Reserve Bank of India data, Tamil Nadu’s gross market borrowings remained at ₹87,000 crore in fiscal 2022-23, as well as in fiscal 2021-22.
The State government plans to borrow a total amount of ₹1,55,584.48 crore during 2024-25. The outstanding debt as on March 31, 2025 will be ₹8,33,361.80 crore, according to Tamil Nadu Budget for 2024-25.
During his reply to the discussion on the Budget for 2024-25 in the Legislative Assembly, the State’s Finance Minister Thangam Thenarasu had said that the Tamil Nadu government’s debts were well within the norms prescribed by the Finance Commission.
He also pointed out that the State government had to bear the losses of Tangedco and was being forced to take loans to fund the entire project expenditure for Chennai Metro’s Phase II project, which led to the increase in revenue deficit and debt burden.
நலத்திட்ட எதிர்ப்பாளர்கள்
வலதுசாரி பார்வையுடன் எழுதப்பட்ட ஒரு மோசமான கட்டுரை. நலத்திட்டங்களால் தமிழ்நாட்டு பொருளாதாரம் அழிவில் இருப்பதாக கட்டுரையாளர் சொல்வது உண்மையல்ல. வேறு எந்த மாநிலத்தையும் விட ஆரோக்கியமான நிலையில் தான் தமிழ்நாடு உள்ளது என்று தரவுகள் சொல்கின்றன. தமிழ்நாட்டின் தொழில்வளர்ச்சி மற்ற மாநிலங்களை விட பலமடங்கு அதிகம். அது மட்டுமல்ல, நலத்திட்டங்கள் மக்களிடம் பணத்தைக் கொண்டு சேர்ப்பதால் மக்கள் செலவு செய்கிறார்கள், இதனால் சந்தையில் பணப்புழக்கம் ஏற்படுகிறது, பொருளாதாரம் வருகிறது என்று சொன்னவர் முன்னாள் நிதியமைச்சர் பா. சிதம்பரம். அதை இம்மாதிரி வலதுசாரிகள் ஏற்பதில்லை. அவர்கள் அதிக வரி போட்டு மக்களை வாட்டி, மொத்தப் பணத்தையும் பிடுங்கி கடனாகவும், கட்டமைப்புப் பணிகளுக்கான ஒப்பந்தங்களாகவும் தனியாருக்குக் கொடுப்பதைக் கொண்டாடுவார்கள். அதனால் நாட்டுக்கு கிடைக்கும் லாபம் என்ன, எவ்வளவு வருவாய் எனக் கேட்க மாட்டார்கள். இங்கிருந்து கடனாகப் பெற்ற பணத்தை வெளிநாடுகளில் முதலீடு பண்ணுகிறேன் என்று பணத்தை வெள்ளையாக்குவதைக் கேள்வி கேட்க மாட்டார்கள். நலத்திட்டங்களை மட்டும் 'இலவசம்' என விமர்சிப்பார்கள்.
