Amid growing political trends of cash handouts, financial expert Akshat Shrivastava advised taxpayers to consider relocating to countries with lower taxes. Shrivastava's remarks came after Delhi Chief Minister Arvind Kejriwal announced Rs 2,100 in monthly cash assistance to every woman in the city if AAP retains power.
Shrivastava, a popular financial influencer, expressed concerns over the lack of taxpayer control on government spending. "New age Democracy is: for the freebies, by the freebies, of the freebies. [On taxpayer's money]. If you are a taxpayer this should hurt you,” he said. “Think where your taxes are going. And, how much control you have over it. If the answer is 0: go where you are taxed least!"
Kejriwal's announcement came with a sharp critique of the BJP, which he accused of obstructing the proposed scheme. “I want to tell the people of Delhi - this time in the elections, press the broom button so hard that BJP gets a strong electric shock,” he tweeted. Kejriwal also highlighted previous welfare measures introduced by his government, stating, “Earlier also, despite all the opposition from BJP, just like I made your electricity free, water free, bus travel free - similarly I will also get you Rs 2100 every month.”
The AAP's reliance on welfare schemes such as free electricity, water, and bus travel has often set benchmarks for others. Madhya Pradesh's former Chief Minister Shivraj Singh Chouhan launched the ‘Laadli Behna’ scheme, which provided Rs 1,000 in direct cash transfers to women, a move credited with aiding the BJP’s return to power in the state.
Similarly, Maharashtra's Mahayuti government and Jharkhand's JMM-Congress coalition introduced similar schemes offering cash assistance to women. In both states, incumbents retained power, which reinforced the belief that such initiatives are effective in attracting women voters.
Earlier this week, A Reserve Bank report sounded concerns over such welfare measures. In a report, the central bank said sops like farm loan waiver, free power, and transport, by states could crowd out their critical resources for social and economic infrastructure.
The RBI's ‘State Finances: A Study of Budgets of 2024-25’ highlighted rising expenditure on subsidies such as farm loan waivers, free electricity, transport, and cash transfers. “States need to contain and rationalise their subsidy outgoes, so that such spending does not crowd out more productive expenditure.”
The report also flagged the increasing fiscal strain, noting that “expenditure on subsidies driven by free services and direct cash transfers” could undermine states’ capacity to build critical social and economic infrastructure.