Election Promises: A Recipe for Fiscal Strains in Five States?

Political parties in four states and a Union territory — West Bengal, Assam, Tamil Nadu, Kerala and Puducherry — have announced ramping up welfare pitches in the runup to Assembly elections next month. Promises in Tamil Nadu range from free liquefies petroleum gas (LPG) cylinders to household appliances; West Bengal is focusing on doorstep delivery of services; Kerala is offering expanded schemes such as free bus travel for women; and Assam is leaning on public employment commitments. These promises, if implemented, will aggravate public finances to varying degrees in these states, depending on the parameters chosen.In Assam, Puducherry and West Bengal, the share of revenue expenditure in gross state domestic product (GSDP) has remained elevated even in recent years. (Chart 1)