Poll promises in Karnataka by Congress party in the name of 'Guarantees' and unprecedented victory over the most popular party, BJP based on Guarantees in assembly election is new to Karnataka. A question arises on the larger interest of the country and the state, that these freebies complimenting the growth or just poll gimmicks by putting the economy in danger? The question is larger and I am not going to dig in to that, let’s look at the confusions and common man's groaning because of the poll promise of free electricity alone and its implementation.
The five Promises are:
- 200 units of free power to all households (Gruha Jyoti)
- Rs 2,000 monthly assistance to the woman head of every family (Gruha Lakshmi)
- 10 kilograms of rice free to every member of a below poverty line (BPL) household (Anna Bhagya)
- Rs 3,000 every month for unemployed graduate youth and Rs 1,500 for unemployed diploma holders aged 18-25 for two years (YuvaNidhi)
- Free travel for women in public transport buses (Shakti)
Conditions on Guarantees and Confusions:
All these poll promises made before the election without any pre-conditions. However, recently several conditions and procedures are laid down in order to avail the benefit. The confusion arose over the conditions by the government. As per the news reports the below calculation and charges will be claimed in the month of June-2023.
“A tariff order, which was passed on May 12, stated that the approved 70 paise per unit hike had to be claimed in June. Along with this, arrears of 70 paise for April will also be added to the bill for June. Hence, there will be a tariff increase of ₹2.89 per unit this month”
“Due to many technical reasons, the FPPCA could not be recovered in March and the rules had provided the power to do the same. It cannot be deferred anymore now as the rules do not allow. Hence it will be collected,” said Ravikumar P., chairman, Karnataka Electricity Regulatory Commission (KERC)” - From thehindu.Com (04th June, 2023)
The confusion No.1, increase in Cost of Living:
June month electricity bill is not yet generated and already 100 to 500 or more arrears are reflecting in the bill for the month of April and May. Some of the households got the electricity bill for the month of June, there is increase of electricity bill almost 100% compared to last month bill. One of my neighbors got the electricity bill of Rs.1700 against the last month and previous month bills of Rs. 700. It is a shocking adjustment to pave way for the 'Griha Jyothi' 200 free unit scheme. The increase may have ripple effect on all services, goods and several end-products. The living cost is suddenly increased to almost double without giving a time to adjust or cope-up. A poor guy may get 200 units free electricity, however for other services and goods he will land up in paying more than he is saving. The consumer goods, other household and food items which production is dependent on electricity will be hit by the tariff change. The cost of all these goods will obviously increase. How the government will manage this challenge is a big question.
The confusion No.2, Increase in cost of paying Guest (PG)/Hotels/Lodges:
In Bangalore most of the students, Single Women/Men reside in PG accommodation. The services in PG managed on electricity. For example the facilities like Water heater, washing machine, cooking food, ironing, etc. Due to increase in electricity tariff the cost of PG accommodation may increase and it could be a burden on these category people who are mostly dependent on PG. It is also an unavoidable business decision for these owners and it may affect their ROI. It applies to even hotels and lodges, the tariff of food and accommodation may increase.
The confusion No.3, Leisure and Entertainment will be dearer :
Today's generation, it may be poor or rich the people prefer to shop in malls. After the electricity bill tariff the dazzling malls, movie halls may face lesser crowd as the tariff change in electricity bills may reflect in the products and service they offer. It will not be a surprise if people stay away from shopping and malls which may affect Karnataka economy adversely.
The confusion No.4, transportation and electric vehicles :
Already there is a displeasure in the taxi and auto drivers; because of free bus for women they are now facing 50 to 60 percent decrease in their income. Because of increase in electricity tariff EV vehicle owners are in dilemma as the charging cost may increase enormously. Karnataka freebies and increase in electricity tariff may not complement to India's commitment to decrease carbon footprint. The freebies should be provided to the citizens, no doubt about it. However, on what cost? People pay taxes from their own earning which adds up to 40 to 50 percent including GST, Road tax, entertainment tax, service tax, innumerable taxes, it is inevitable even if one comes under income tax radar or not.
Freebies should be provided with substantial, self sustained plans rather than burdening the taxpaying common man. At the end of the day government considers the taxpaying crowd as well-off and don't consider or include them in state sponsored schemes. The people who pay tax promptly feel left out, neither here nor there.
The confusion No.5 : How about metro trains which run on electricity?
People are worried even the metro trains in Bengaluru run on electricity, because of increased tariff the metro ride may also be dearer. The freebies of the government should not be a burden on the people while implementing them. In one hand it looks helpful and in another it is a burden.
What can be done:
The governments must facilitate people who are contributing to revenue, economy and growth of the state with some basic facilities. The faculties in any form should be self sustainable and not a burden on state's exchequer.
Free Electricity:
When it comes to providing free electricity, the government can freely or in a subsidized form provide wind or solar power generation installations to households. It helps people reduce their burden of electricity bill as well as contributing to green energy. No need to increase power tariff and saving lot of power which can be used for other bigger projects like Metro trains.
Free Food or Food items:
If government wants to provide free food, there are many ways to provide food instead of providing free ration. Free ration may reach them or may not. Or it can be used in a different way than utilizing for the family.
- Use Akshaya Patra or any other NGO area wise, provide minimum fund support as these are NGOs already working for social cause. Can provide food to lakhs of people and it can continue the work no matter what party is in power.
Lets hope these freebies may help the people of Karnataka and not a burden on our pockets.
By
Vismahi- Vijay G
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