As
is evident from statements of Rahul Gandhi and other party leaders, the
Congress party is going to bet heavily on the direct cash transfer of subsidy
and the food security bill.
Though
opposed to the wisdom of economists like Manmohan Singh and Montek Singh
Ahluwalia, the whole UPA machinery is busy in swelling the coffers of the
government by increasing prices and cutting subsidies (and labeling them as
reforms), to fund these multibillion dollar populist dole-outs before the
upcoming general elections.
This
is certainly based on the windfall returns that the Congress party had after
launching the farm debt waiver scheme in 2008 that preceded the UPA victory in
2009 general elections.
In
a half-baked democracy like India
with majority still poor and ill-informed, elements of perception still play a
major role in electoral outcomes. India is an agrarian economy with
small peasants forming the major chunk. The Congress party sees them as the
conventional vote bank. It believes the chunk is large enough to swing the poll
outcomes.
The
Congress party played on that and exploited the benefits in 2009. It is too early and
too remote for the vote bank to react and make an opinion on the scam that the
farm debt waiver scheme was.
Scam
reporting on the issue is only in initial stages and the election time is
already here with majority of political indicators saying the 2014 is going to
be in 2013.
Before
people realize the populist con of the Congress party, they would be
perceivably inundated with the direct cash subsidy and a promised food
security.
Now
in a country where malnutrition is still a major problem and where hunger is
still a relevant issue, masses go for the immediate measures providing them
instant relief.
The
Congress party is banking on this impulsive mindset of its target vote bank. It
believes these two populist schemes can pull its voter to the booth to vote for
it.
The
history tells the Congress party has valid reasons to think so. And if that is
so, the grand old party of India
would work to have the general elections in the second half of the year to reap
the ‘perceived’ benefits of its two mega windfall offerings.
Is
the political opposition in India
reading this?
Is
the Congress party reading too much into this?