Modi’s ‘revdi’ debate and the role of welfare in India | LME 60

The first time I heard PM Modi say the word ‘revdi’, I wasn’t sure what it meant.

Someone said it’s a Rajasthani sweet. 

But surely, the PM wasn’t talking about a dessert.

Well, he was talking about freebies- and how it will destroy India.

Every election season, welfare schemes take center stage. 

Some call them freebies, others use terms like ‘revdi, sops, or even bribes.

The BJP has been the most vocal against such schemes, but the twist is, they have announced and implemented these ‘revdis’ many times. 

 In a country where the richest 1% own 40% of the wealth, what role can welfare schemes play?

And are they sustainable as debts of states increase?

Let’s break it down.

So many of you write to us, sharing your appreciation for our work—and trust me, it’s always amazing to hear from you! Your support keeps us going. But the thing is, this kind of work is possible because we have made a commitment, a hard one at that–to not take sponsorship from any corporate or govts and only depend on you–our audience. So our journalism is free from the influence of any vested interest. If this show has informed or empowered you, show us how much it matters—become a TNM-NL subscriber. Stand by us so we can continue standing by you.

Become a subscriber- Click here

So, what is a welfare scheme? 

Essentially, they're goods or services that the government provides for free or at a very low cost.

There are merit schemes like subsidized education. And non-merit schemes like a free mixer, cooker or TV.

First let’s look at why governments in India cannot do away with welfare schemes.  

India has sharp inequalities and persistent poverty. India is still deeply divided by caste, religion, and gender. Here, many communities have limited access to basic resources.

Welfare programs help level the playing field by providing things to those who need them most. They’re a way to make sure everyone gets a fair shot.  

Freebies vs. Public Goods: What’s the Difference?

It is easy for the privileged to dismiss such measures as sops or freebies.

But there is research that shows such measures really help.

Let’s take a look at a few real-life success stories;

The mid-day meal scheme was first introduced by the Justice Party in Tamil Nadu in the 1920s and then expanded by Chief Ministers K Kamaraj and MGR. 

It was a simple idea. One free nutritious meal for a school-going child. 

Every Chief Minister added something to this scheme. Karunandihi introduced eggs, and Jayalallithaa brought in variety meals.

The result? Millions of kids get free meals, school enrolments rose, dropouts decreased. 

And most importantly- more girls went to school. 

The mid day meal scheme was expanded nationwide and is one of India's most successful welfare programs.

Over the years, there have been other schemes in Tamil Nadu that have contributed to a better Human Development Index.

For example, the Karunanidhi government gave free color TVs to poor families. Studies have shown this promoted education and better access to information, particularly among women.

Jayalalithaa launched several welfare schemes Free Laptop Distribution Scheme which helped bridge the digital divide. 

Amma grinder, mixie, table fan helped women save significant time from domestic work 

The Nitish Kumar govt in Bihar started giving free bicycles to girls in grades 9 to 12 from 2007. This program helped reduce school dropouts. It even reduced child marriages. 

Telangana’s Rythu Bandhu under CM KCR helped farmers by providing financial support, thereby helping reduce rural poverty.

First CM Kejriwal and then CM Stalin introduced free bus rides for women in 2021.This scheme was brought to Karnataka and Telangana by the Congress.

Initially the scheme was met with skepticism. But study after study shows it has benefited women. A study called Riding the Justice Route by Greenpeace International says it increased mobility and allowed women to save money. Money, they could then use for other purposes.

I could go all day listing out welfare measures. So, let’s move to direct cash transfers

Ladki Bahin, Ladli Behena, Lado Lakshmi, Gruha Lakshmi, Maha Lakshmi, Maiya Samman, Pyari Behna Sukh Samman- There are many cash transfer schemes now. 

The global think tank - Centre for Financial Inclusion found that cash transfer programs that send money directly to women, enhances household well-being, increases women’s empowerment and reduces the risks of intimate partner violence (IPV) as well.

A 2014 review published by the University of Chicago found no evidence that cash transfers lead to more spending on things like alcohol or tobacco, which is a major concern people often have.

Nobel prize winning economist Abijit Banerjee says cash transfer alleviate poverty and their research shows people don’t misuse the money.

Not all experts agree though

Academic Yamini Aiyar is a skeptic. She says governments are using cash transfers like a quick fix instead of investing in long-term solutions, strengthening public systems and creating economic opportunities.

The politics over welfare schemes has been acrimonious. 

On top of PM’s ‘revdi’ attacks, BJP leader Ashwini Kumar Upadhyay filed a petition in court to control parties from promising sops.

The government backed this petition, with Solicitor-General Tushar Mehta arguing that welfare schemes could cause economic issues and interfere with voters’ ability to make informed decisions.

The BJP however says one thing and does another. 

A Lokniti-CSDS study showed that BJP won for the seventh time in Gujarat partially because of the delivery of government welfare schemes like free ration and medicines

During the Himachal Pradesh election in 2022, BJP promised bicycles, scooters and cash incentives for students.

In Maharashtra- they had the same cash transfer scheme they criticised others for. It’s called Ladli Behna and was one of the reasons why the BJP coalition won.

Of course, we have to acknowledge some of the inherent problems of this model. 

Certain schemes, like free electricity or water, lead to price distortions. They put a strain on natural resources and government budgets.

Welfare schemes are putting pressure on state finances. For instance, Karnataka is spending over 10% of its revenue on the Gruhalakshmi scheme. Andhra Pradesh, Kerala, and Tamil Nadu have been struggling with revenue deficits for years, and now Karnataka has joined them. On top of that, these states have large debts and spend a lot of their revenue on salaries, pensions, and interest payments.

Finance Minister Nirmala Sitharaman has promised that the 2024-25 Union Budget will lay out a roadmap for India to become a developed country by 2047. But it’s a massive challenge. India’s per capita GDP is currently $2,700, and it needs to shoot up to over $20,000 to join the club of developed nations.

For this to happen, India needs to focus on better education, skills, healthcare, and access to basics like food, water, and sanitation. Welfare spending, especially in rural areas, will be key to making this happen.

But governments cannot just give sops and stop. They need to simultaneously strengthen public systems- or none of this will work long-term.

For ideas and suggestions, write to pooja@thenewsminute.com

Like Pooja’s LME show? Become a subscriber: Click here 

Become a subscriber- Click here.

Contribute to our reporting fund. Click here. 

To check out our other shows, Click here 

To not miss any updates, join TNM's WhatsApp Channel! Click here

Produced by Megha Mukundan, edited by Nikhil Sekhar