TN freebies & welfare schemes drain state treasury, faces Rs 9000 crore revenue deficit

Chennai: It is not exactly news that the Tamil Nadu government has built itself a reputation for welfare schemes. From subsidised food to free laptops to induction stoves, name it and chances are that it is a freebie. These schemes have sent the state's revenue deficit soaring to over Rs 9,000 crore, but this has not stopped the government from continuing with money-intensive schemes.

The Tamil Nadu government's welfare wagon has taken its toll on revenue numbers. It's alarming that the state's revenue deficit is pegged at over Rs 9,100 crore for FY17, nearly double the Rs 4,616 crore revenue deficit estimate for FY16. And going by the state's interim budget, the government is not letting up.

In the last five years, the Jayalalithaa government has spent a whopping Rs 7,756 crore. The money has gone towards the distribution of free electric fans, induction stoves and mixer-grinders. In the same period, Rs 19,204 crore have been spent on the government's senior citizen social security plan, and an additional Rs 3,820 crore has now been allocated to this heading in the coming fiscal.

The AIADMK government has also spent Rs 3,231 crore on providing free laptops to college students so far, and the interim budget has allocated Rs 1,100 crore more to complete the scheme.

In sharp contrast, the government has spent only Rs 782 crore on Anganwadi centres as part of the Integrated Child Development Services or the ICDS Scheme, though the latest interim budget has doubled that spending to Rs 1,696 crore.

Other big welfare announcements in the interim budget include Rs 703 crore towards Tamil Nadu's marriage assistance scheme and Rs 1,645 crore towards the state's Nutritious Meal programme.

Interestingly, the list does not include the much-talked-about Brand Amma initiatives like subsidised canteens and mineral-water bottles, since those schemes are funded by city corporations.

Being an interim budget before elections later in 2016, the Tamil Nadu government stopped short of making new budget announcements on the welfare front. But indications are rife that the ruling AIADMK might reserve those announcements for the campaign trail, in the next couple of months. And that can only mean that the government plans to spare no effort in keeping its welfare wagon rolling.