Babu promises cash for votes

March 5: The Telugu Desam president, Mr N. Chandrababu Naidu, has taken the “cash route” to woo the voters. Even as financial experts warn that his scheme can mean big trouble for the state, Mr Naidu has promised a “Brazilian” cash transfer scheme for the poor and the middle-class. The amount promised ranges from Rs 1,000 to Rs 2,000 a month. Alongside, he has also promised free colour TVs.
“If all sections accept it, we will go ahead. People can send feedback on the schemes through SMS 96180 and 96186.”
Financial experts say that if all his promises are implemented, the state’s coffers will run dry and developmental works will come to a halt.
The cash transfer scheme would itself cost around Rs 18,000 crore and the free colour TV scheme would cost another Rs 5,000 crore (if TVs are mass produced at Rs 5,000 per set).
“It will be difficult to fulfil his poll promises given the revenue situation,” said a senior official the finance wing. “We are struggling to meet the promises already made by the Chief Minister, Dr Y.S. Rajasekhar Reddy.”
Further, the free power to households would cost the exchequer Rs 1,200 crore and free power to farmers for 12-hours would cost nearly Rs 2,800 crore.
The waiver of water bills and payment of unemployment stipend, the dole of Rs 1,000 for disabled persons, the 10 paise interest loans to self-help groups and farmers would place a burden of Rs 8,500 crore on the state.
Free education to poor and middle class and free medical treatment would cost nearly Rs 9,000 crore.
Officials say that fund for paddy farmers, artisans, gulf-victims would cost another Rs 1,000 crore. Alongside, the government would have to pay salaries to nearly 11 lakh employees and pensions to another 8 lakh.
To further sweeten the deal, Mr Naidu also announced that he would not go for tax-hikes and has promised to get rid of liquor belt shops.