As governments roll out welfare schemes and freebies to various segments, a crucial question often goes unasked: who is really paying for it? Mumbai-based author and strategist Deepak Ghadge points to everyday price hikes such as the recent ₹100 increase in Shivneri bus fares between Mumbai and Pune as hidden costs being shouldered by the middle class.
"In the budget, there was this big announcement of approx ₹1 lakh plus tax savings to the middle class. But the government has already taken ₹12,000 from me by merely increasing the fare by ₹100," he wrote in a LinkedIn post.
Ghadge argues that while welfare schemes aim to help some, the burden of funding them is quietly passed on through small but cumulative price hikes that impact daily life.
Sharing his personal experience, Ghadge writes, "I travel to Mumbai to Pune very often. Every week. I generally take the Shivneri bus run by MSRTC — it's fast and decent, mostly they are on time."
But a recent ride came with an unexpected cost. "My ticket used to be ₹610 one side vs private bus fare of ₹400 — already a 50% difference. To my surprise, I was asked to pay ₹700. I asked the conductor why the fare is so high? He said the fare has been increased by 15%."
He points out, "A 15% hike is twice the inflation rate, and when you are already charging a 50% premium compared to private players." The conductor’s response was clear: "We can't do anything, it's the government's decision."
Ghadge breaks it down further:
Yet, passengers receive no added benefit. "By giving ₹100 more, I am not reaching 45 minutes earlier. I still take the same time. I am not served any soft drinks or tea or coffee," Ghadge writes.
He warns these "small hikes" are becoming an invisible tax on the middle class, funding freebie schemes. "Don't fall or vote for freebies because we only pay for it. Don't promise freebies — instead, build infrastructure, skill, entrepreneurial #ecosystem, create jobs and markets."
Ghadge also highlights the broader tax burden: "Today we are paying on average 12 to 18% GST on all goods and services we consume, on top of income tax. Either we should slash tax percentages or abolish income tax. More taxpayers would mean more money for #development."