·The Hindu·15 marks·250–350 words

"Electoral manifestos are increasingly shaping welfare architecture." Discuss the implications for fiscal responsibility and the debate on freebies.

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In this answer
  1. How manifestos shape welfare architecture
  2. Implications for fiscal responsibility
  3. The freebies debate

In October 2026, Tamil Nadu sanctioned 'Vetri 150' to deliver a TVK manifesto promise. The scheme adds 25 State-funded workdays to the 125-day VB-G RAM G guarantee [1]. Manifestos now design entitlements rather than just announce them, which has mixed effects on fiscal prudence and on the freebies debate.

How manifestos shape welfare architecture

  • Promise-to-policy pipeline: an election pledge became policy through administrative sanction. This lifts the effective guarantee to 150 days [1].
  • Layering on Central floors: the Centre sets a statutory minimum of 125 days by law [2]. States then compete to add populist top-ups.
  • Executive, not statutory, entitlements: top-ups rest on executive orders [1], so a later government can withdraw them.

Implications for fiscal responsibility

  • Stacked liabilities: the Centre and States share costs 60:40. The total requirement is an estimated ₹1,51,282 crore a year, and the Centre's share is about ₹95,692 crore [2]. Manifesto top-ups are fully State-funded [1].
  • Crowding out: RBI estimated freebies at 0.1–2.7% of GSDP across States, above 2% in indebted Punjab and Andhra Pradesh. It also noted that subsidies crowd out other useful spending [3].
  • Rising burden: RBI's 2024-25 study of State budgets flags high debt, contingent liabilities and a rising subsidy burden as growing fiscal concerns [4].
  • Rationing risk: cost pressure may tempt States to quietly ration work within the base 125 days. That would weaken the core guarantee itself.

The freebies debate

  • Merit good vs freebie: RBI separates freebies from merit goods such as employment guarantees, PDS, health and education [3]. A top-up that requires work and creates assets is closer to welfare than a consumer-goods giveaway.
  • Judicial view: in S. Subramaniam Balaji (2013), the Supreme Court held that manifesto promises are not "corrupt practices" under Section 123, RP Act. It still accepted that freebies influence voters and directed the ECI to frame guidelines [5].
  • Disclosure norm: Part VIII of the Model Code asks parties to explain the rationale for their promises and how they will pay for them. Compliance is still largely self-declared [5].

Welfare driven by manifestos can make governments more responsive to voters, but only promises with secure funding last. Several steps would help:

  • mandatory costing of manifestos;
  • separate budget lines for top-ups;
  • statutory backing for entitlements;
  • adherence to FRBM targets.

With these, States like Tamil Nadu can advance the Article 41 right to work and SDG 8 without mortgaging future budgets.

Sources

  1. 1The Hindu, "T.N. sanctions scheme for additional 25 days of work" (21 October 2026): 'Vetri 150', 25 State-funded days on top of 125, TVK manifesto origin, administrative sanction
  2. 2PIB, Viksit Bharat–G RAM G Act, 2025 (backgrounder): 125-day statutory guarantee, 60:40 cost sharing, ₹1,51,282 crore annual requirement, ₹95,692 crore Central share
  3. 3RBI Bulletin (June 2022), "State Finances: A Risk Analysis": freebies at 0.1–2.7% of GSDP, over 2% in Punjab and Andhra Pradesh, subsidies crowding out other spending, freebies vs merit goods
  4. 4RBI Press Release, "State Finances: A Study of Budgets of 2024-25" (19 December 2024): high debt, contingent liabilities, rising subsidy burden
  5. 5Election Commission of India, Manual on Model Code of Conduct: *S. Subramaniam Balaji* (2013) direction to the ECI, Part VIII guidelines on election manifestos

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