Rs 5,000 Cash Bonanza For 1.31 Crore Women As Stalin Springs Pre-Poll Surprise

Cash doles ahead of assembly elections has become a common occurrence in recent times, despite red flags raised by economists and RBI.  In an attempt to woo women voters, the ruling DMK government announced that Rs 5,000 each has been credited to 1.31 crore beneficiaries under the Kalaignar Magalir Urimai Thittam. This includes advance disbursal of the monthly dole of Rs 1,000 for February, March and April, along with a “special summer assistance” component of Rs 2,000. Chief Minister M K Stalin defended the decision alleging there were attempts to stall the monthly disbursal during the election period. The move will cost the state government about Rs 6,500 crore. Stalin also promised that if DMK comes back to power the monthly amount would be increased to Rs 2,000. The DMK government’s move attracted sharp criticism from the Opposition parties. Interestingly, the AIADMK has promised a sum of Rs 2,000 per month would be paid to the woman-head of every family covered under the system of ration cards. DMK’s move follows a Rs 3,000 cash dole to more than 2.22 crore rice ration card-holders, which cost the state government Rs 6,936 crore. The recent Economic Survey has warned about unconditional cash transfer by States affecting the fiscal mix. Seems political compulsions overrule fiscal prudence during elections and it leaves no little room for capital spending.