Freebies aren’t actually free

The facade of the iconic Brihanmumbai Municipal Corporation headquarters in Fort is reflected in a puddle. FILE PIC/NIMESH DAVE

The dangerous "revdi" culture - the practice of Indian political parties offering costly freebies - is taking root in Mumbai's civic politics. As the Brihanmumbai Municipal Corporation (BMC) elections draw closer, political parties that have ruled the city's civic body are now dangling a range of freebies before voters to retain control, raising a basic question: Should the BMC be treated like a welfare ministry or should those seeking control of India's richest civic body focus on fixing Mumbai's everyday problems?

This debate goes to the heart of what citizens expect from their civic government. For most citizens, the priority is not handouts but better roads, flood-free monsoons, reliable water supply, clean hospitals, and efficient waste management - basic civic services for which the BMC is meant to be accountable. These are not demands for luxuries, but expectations from a city that pays heavily into the system.

Yet the message from the campaign trail is clear: Winning elections at any cost seems to matter more than delivering these essentials. That political mindset is reshaping how welfare itself is being defined.

Short-term political gains are taking precedence over the long-term responsibility of making Mumbai function better, even as these so-called "revdis" strain civic finances and divert funds from core services.

The government does have a moral duty to support marginalised sections, and genuine welfare is essential to reduce inequality. But after the 2024 state Assembly elections and now in the run-up to the BMC polls, the line between welfare and vote-driven populism is becoming dangerously blurred. Freebies are being announced without long-term planning or serious concern for the financial health of either the state or Mumbai's civic body.

Mumbai already provides basic services, such as education and healthcare, at affordable rates to the poor and vulnerable through its civic institutions, reinforcing the point that welfare need not come in the form of election-time handouts. However, election manifestos are increasingly moving towards cash and consumption-driven promises.

The debate around flagship schemes exposes a clear political double standard. Parties that once criticised cash handouts as vote-buying and financially irresponsible are now promising Rs 15,000 a month to women domestic workers in Mumbai. The list does not stop there; free electricity up to 100 units, meals for R10, property tax waivers for flats up to 700 square feet, and several other concessions are being rolled out. These offers may sound attractive, especially to families battling rising prices, but in real life, nothing is free. Someone, somewhere, always pays the bill.

That bill is already growing. Maharashtra may be one of India's richest states, but it is drowning in debt. By 2025-26, the state's total debt is estimated to touch around Rs 9.32 lakh crore, up sharply from Rs 7.82 lakh crore just a year earlier.

In simple terms, the government is borrowing heavily just to keep the system running. This financial strain is visible in schemes like Ladki Bahin, which adds nearly Rs 36,000 crore annually to expenditure even as revenues remain under pressure.

Deputy Chief Minister Ajit Pawar, who holds the finance portfolio, has repeatedly cautioned against reckless spending when faced with demands for large outlays, whether for farm loan waivers or welfare schemes. In public speeches, he has often reminded audiences that while many things can be managed in politics, money cannot be wished into existence, a clear warning about the limits of the state's finances.

Mumbai's civic body is in no better shape. Its income has shrunk due to property tax waivers, the abolition of octroi after the Goods and Services Tax, and a long freeze on civic charges, such as water taxes, despite rising costs. The BMC's Rs 74,000 crore budget document for 2025-26 itself admits that revenues have hit a ceiling.

A couple of years ago, the Comptroller and Auditor General of India pulled up the BMC after flagging serious irregularities in its account books. The CAG report pointed to a troubling lack of transparency and planning, along with careless use of public funds, raising uncomfortable questions about financial discipline at a time when the city's civic body claims it is running out of money.

Also, for the last couple of months, there has been growing talk in political corridors that contractors' bills are being delayed due to fund shortages, even as the city urgently needs road repairs, drainage cleaning, hospital upgrades, better schools, and expanded public transport.

Unlike state governments, the BMC has very limited revenue options. It depends largely on property tax, water charges and development fees. There is no magic money tree. Every new freebie eventually means higher taxes, poorer services, or stalled projects, and it is the same citizens who were promised "free" benefits today who pay the price tomorrow.

For ordinary Mumbaikars watching this flip-flop, the question is unavoidable: if cash handouts were irresponsible earlier, why are they suddenly being sold as good policy now?

For the middle class, this debate is not ideological but deeply personal. They already pay high taxes, face soaring housing costs and endure patchy civic services. Their worry is simple: Will they be asked to pay even more while basic services continue to deteriorate? Welfare is important, but real welfare empowers people through jobs, skills, education, and healthcare, not endless handouts timed around elections.

Citizens are not asking for free lunches; they want clean water, safe footpaths, reliable transport, and honest administration.

For now, without a clear revenue plan, the current freebie rush risks turning Asia's richest municipal corporation into a burden on its own citizens. Instead of working towards making BMC the Best Managed Corporation, Mumbai's civic body appears to be sliding towards becoming a Badly Managed Corporation.

Sanjeev Shivadekar is political editor, mid-day. He tweets @SanjeevShivadek
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