Free rations ensure poverty perpetuation, not elimination

“Today, India has reached that part of the moon where nobody has landed before. Today, Bharat has become number 1 in digital transactions after breaking every barrier. It is leading in mobile manufacturing, standing strong among the top 3 countries in the world in startups and making a pool of skilled people.”

These were the words of Prime Minister Narendra Modi at the Hindustan Times Leadership Summit.

He went on to say that India is waving its flag high in global events like the G20 Summit and breaking every barrier.

Within four hours of this event, Modi was in Chhattisgarh for his election campaign during which he announced the extension of the PM Garib Kalyan Yojana (PMGKY) for another five years. This means that 80 crore Indians (of the total population of 140 crore) will continue to get free ration for five more years. Nirmala Sitharaman has already confirmed in her Budget speech that the government would bear the entire expenditure of a whopping Rs 2 lakh crore annually on account of PMGKY.

Modi criticises the opposition for their ‘revdi’ culture if they announce freebies. But he conveniently forgets that the biggest revdi is his own free ration for 80 crore people for six years.

Chattisgarh goes to poll in two phases on November 7 and 17 and one wonders as to what happened to the code of conduct as Modi announced the extension of the PMGKY. This last-ditch effort to woo the voter is beyond the BJP’s Election Manifesto. Remember, Modi has made the announcement as the Prime Minister and not as a mere BJP leader and it is a serious issue.

Trinamool Congress MP Saket Gokhale has lodged a complaint with the Chief Election Officer – Chhattisgarh “against this desperate & brazen move by PM Modi to influence Assembly Elections in 5 States”. Election Commission Rules state that making such announcements by a Minister during election period amounts to unfair influencing of voters by use of state machinery, Gokhale said in his post on X platform (formerly Twitter).

The Prime Minister takes pride in announcing at every event that over 13.5 crore people have come out of poverty during the last five years alone. Does it mean that over 93 crore people were poor in 2018?

Be that it may, the government also ridicules the global hunger index where India ranks 114 among 125 countries surveyed. If over 60% of India’s population cannot afford to avail ration, why can’t the government accept the hunger index and start working towards improving the ranking? No. On the contrary, Modi and his team would like to make snide against the Congress saying the opposition party likes to see that the poor remain poor.

Prime Minister Modi also talks of Jan Dhan bank accounts becoming a medium to break the mental barriers amongst the poor and reinvigorate their pride and self-resapect. Fine. But what is the point in maintaining these accounts in which there is no transaction. Moreover, maintaining these accounts also costs banks.

First the Amrit Kal carrot and now that this period has come to an end, the Modi talks of the next 25 years for the nation to progress.

Modi is right when he says that there is no dearth of capabilities and resources in India. He is doubly right when he says poverty cannot be fought with slogans but it requires solutions, policies and above all intentions. Right now. And for the next five years, the only intention of the government seems to be to maintain 80 crore Indians as poor by giving them free ration. Who would like to work hard for two square meals a day when one gets it free? The poor are certainly capable of overcoming poverty, Mr Modi! But do we allow them to get out of poverty when we continue to give them free food? Is this the transformation that you talk about? No, I am not belittling the poor, I am only asking the government not to hurt their self-esteem.

It does not require rocket science to realise that providing sources of income is vital to eradicate poverty. Right education, followed by the atmosphere for industries, businesses and self-employment (now fashionably called startups) to flourish are the keys to generate employment, income and improve the spending power. This will have a cascading effect on the economy. Moreover, even a five-trillion-dollar GDP does not mean anything in actual terms unless the per capita income improves with it. And this is not going to happen by merely talking sky high about Chandrayan or criticising the Nehruvian economy.

Prime Minister Modi mentions the negative headlines by national and international publications about harsh economic conditions taking a toll on the middle class in 2013. But today, the Prime Minister said, the middle class is moving forward at a fast pace in India's development journey, be it startups, sports, space or technology.

But going by the claims of the government feeding 80 crore people, one wonders as to what is happening with the fast progressing middle class.

Modi also says that more than 7.5 crore people have filed income tax in 2023, a rise from 4 crores in 2013-14. The mean income which was less than Rs 4.5 lakh in 2014, has increased to Rs 13 lakh in 2023, and as a result, lakhs of people are moving from lower income groups to higher income groups. Citing an interesting fact from an economic report published in the national daily, the Prime Minister informed that if the total income of those earning in the salary bracket of Rs 5.5 lakh to Rs 25 lakh is added, the figure was around Rs 3.25 lakh crore in the year 2011-12 but it rose to Rs 14.5 lakh crore by 2021 which is 5 times increase. He clarified that the figures are based on an analysis of salaried income only and not any other source. But again, this class is in a terrible minority as compared to the 80-crore poor.

In a way, Modi admits that providing salaried jobs or creating the right atmosphere for it is the key to income generation for the ordinary Indian.

“Today, from the poorest of the poor to the world's richest, they have started believing that this is India's time”, the Prime Minister said. He remarked that the biggest strength of every Indian is self-confidence. But continuation of free rations to 80 crore people is not certainly the way to cash-in on this so-called self-confidence.

Apart from the charges of poll code violation, such announcements give credence to the talk that BJP is losing ground and worried over the pre-poll survey reports that suggest the possibility of the world’s largest party losing the elections to the five State legislative assemblies. Adding to this debate is the series of Enforcement Directorate raids targeting the non-BJP leaders as if corruption is limited only to them. More on this later.