Secret Concerns: Two Chief Ministers Oppose Freebies, But Stay Silent in Public

Two Chief Ministers—one from the Bharatiya Janata Party (BJP) and the other from the Congress—have privately expressed strong reservations about the growing trend of pre-election cash handouts, commonly known as 'revdi', but have chosen not to voice their concerns publicly. Their identities and states are not disclosed, but their shared dilemma highlights a deeper political and fiscal crisis afflicting several Indian states.

The financial health of many states is deteriorating. Revenues are slowing, expenditure is rising, and debt is increasing to bridge the gap. Some states, such as Telangana, Bihar, and Himachal Pradesh, struggle to pay salaries, while others, like Punjab and West Bengal, lack funds for critical infrastructure that drives economic growth. Yet, during state assembly elections, major parties like the BJP and Congress continue to announce generous cash-transfer schemes targeting women, the unemployed, and other voter groups.

The first Chief Minister, from a BJP-ruled state with relatively good finances, faces a unique predicament. His state does not offer large monthly cash transfers. When he campaigns for his party in other states, he is asked to promote such schemes. However, he refuses. 'If you listen to my campaign speeches during elections in other states, I never talk up such cash benefit schemes. I focus on everything else,' he confided. His reasoning is strategic: 'My people are shrewd. The day I laud, praise, and advertise such schemes—even if announced by my own party—in other states, my people will demand the same. I cannot afford to go down that path.'

The second Chief Minister leads a state with far worse finances. Inheriting a legacy of excessive borrowing and populist spending, he has realised the severity of the crisis. In a private meeting with Prime Minister Narendra Modi, he made an unusual plea. 'I told Prime Minister Modi that the only way to stop political parties from this race to the bottom is to bring a Constitutional amendment and fix a cap on such expenditures,' he said. This request is striking because the Congress party, to which he belongs, has itself engaged in competitive populism. His state's outstanding debt has nearly tripled over the past decade under the previous administration, leading to high interest payments and straining funds for essential services like education, healthcare, and infrastructure.

Both Chief Ministers represent a growing unease among state leaders about the fiscal unsustainability of freebie culture. However, they remain silent in public, wary of political backlash. Even Prime Minister Modi, who famously criticised 'revdi' in 2022, has not followed up with concrete action. The dilemma reflects a systemic problem: while political parties compete for votes through short-term giveaways, the long-term health of state finances suffers. Without collective will and structural reforms, the cycle is likely to continue.