New Delhi, Mar 19 (PTI) Vice President and Rajya Sabha Chairman Jagdeep Dhankhar on Wednesday opined that there should be a structured discussion on freebies and subsidies in the House as there is an urgent need for a national policy to help put all government investments to the larger good.
Responding to the demand made by Samajwadi Party’s Ram Gopal Yadav for increasing the funds, which Members of Parliament have at their disposal for developmental projects and schemes in their respective constituencies to Rs 20 crore a year from the current Rs 5 crore during the zero hour, Dhankhar said he would be open to a structured discussion on the issue if the government and the opposition agree.
Electoral freebies, such as free electricity and water, subsidised cooking gas, and cash handouts to certain groups like farmers and women, have often been criticised as something that may lead to unsustainable financial burdens on the government, distort public resources, and undermine long-term development goals.
“On placatory mechanisms, on appeasement, which is often known as freebies, this House needs to deliberate. I will be open to a structured discussion after consulting the Leader of the House and the Leader of the Opposition,” he said.
The country can grow only if money is available for capital expenditure, he said.
Capital expenditure or capex is expenditure for creating assets such as infrastructure that yield long-term returns for the economy. In contrast, freebies are revenue expenditures that do not contribute to the creation or acquisition of fixed assets.
“Electoral process is such that these have become electoral allurements and thereafter the governments that came in the saddle, found themselves very uncomfortable, so uncomfortable that they wanted to revisit their thoughts,” he said.
“There is an urgent need for a national policy so that all investments of the government in any form are used in a structured manner for the larger good.” If the leaders of both sides agree, there can be a discussion, he said adding this is a very serious issue. The comments assume significance as many states faced challenges in funding electoral freebies, particularly due to the financial strain they place on state budgets. States like Punjab have faced financial constraints in meeting poll promises.
Dhankhar then touched upon the issue of subsidies.
“Subsidies, if required in areas like the farm sector, should be direct. That is the practice in developed countries. I checked with the US mechanism. The US has 1/5th of farm households as our country but the average income of a US farm household is more than the general income of a US household, and that is because the subsidy to the farmer is direct, transparent, without intermediary,” he said.
This issue can also be discussed subject to the two sides agreeing, he said.
In his zero hour submission, Yadav said MLAs in Uttar Pradesh get Rs 5 crore for constituency development and those in Delhi have Rs 10 crore at their disposal.
Five assembly constituencies make for one Lok Sabha constituency in Uttar Pradesh which makes it a cumulative of Rs 25 crore available with the MLAs annually for their constituencies in comparison to Rs 5 crore provision in the Members of Parliament Local Area Development Scheme (MPLAD), he said and went on to site how the cost of construction has risen in the last two decades, making the MPLAD funds inadequate to nurture constituencies.
He demanded that MPLAD fund amount be raised to Rs 20 crore, it be exempt from GST and a technical cell be created for estimates and quality inspection of work done. “If this is not possible, then MPLADs should be abolished,” he said.
Dhankhar remarked that the constitution does not provide for a uniform mechanism for pay and perks of MPs and MLAs.
Some assemblies give members perks and salaries that are much more than what Members of Parliament (MPs) get.
“Even the pension variation for a former member of the assembly is on a scale of 1 to 10. If in one state, one is getting one rupee, in the other state the pension will be 10 times,” he said.
He said in the Constituent Assembly debates, one of the distinguished members, Sidhwa, reflecting on the power of Parliament to remove the judges, said, “It is very good to arrogate power without examining other elements. But trust me, he reflected, the number of judges will grow, we will not be able to fructify even one.” PTI ANZ DR
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