Thursday, May 19, 2011

Tamil Nadu's freebie culture to cost taxpayers dearly

Tamil Nadu has set its own dubious benchmark when it comes to freebies distributed by the government. From colour television sets to mixers and even gold for mangalsutras to lure the voters. Though these schemes might benefit a certain class of people, the burden on the exchequer is quite heavy.

AIADMK chief J. Jayalalitha is likely to set into motion her freebie bonanza and going by approximate numbers – it is going to come at a huge cost to the state.

The free mixers she has promised for all households will involve a cost of around Rs 3500 crore and grinders for all households will cost another Rs 3500 crore. Apart from these items, the distribution of fans will cost about Rs 1000 crore. Furthermore, 20 kg of free rice for the poor will involve around Rs 400 crore.

The bill for the DMK government's free colour television scheme involved the distribution of over 1 crore 72 lakh TV sets at a cost of Rs 3950 crore.

The only ones excited – apart from the voter – are grinder manufacturers.

"Our turnover is around Rs 50 crore. As the government invites for bids we will also submit the bids. If we are successful it will revive our business altogether and not just our company. Many others in Coimbatore which is the centre for grinder manufacturing will benefit," said Parimala, MD of PVG Grinder.

Tamil Nadu is already under Rs 1 lakh crore in debt but fiscal responsibility seems to be the last priority for its political parties.

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