Not long ago during the Delhi assembly elections, Congress party made big promises to people, calling them ‘guarantees’ for women, unemployed youth, students, elderly among others. They repeated the same promises during the Lok Sabha elections, even issued special ‘guarantee cards’ to women promising one lakh per month, but none were ever fulfilled.
Congress enters almost every election with their usual slogans like “Caste Census” and “Jitni Abadi Utna Haq” to attract marginalised communities. They promise unemployment allowances and claim to be the saviours of the poor. But once in power, helping the poor seems to be the last thing on their agenda.
A clear example in the current times is Himachal Pradesh, which has been in crisis since Congress took over. Government employees are not being paid, and the state is on the verge of financial collapse. Recent reports suggest that the government is even considering using temple funds for welfare schemes.
Temple funds to be used for Government schemes
Like in Karnataka, Congress and its reckless freebie promises have backfired in Himachal Pradesh. A government notification dated January 29 asks temple trusts to contribute funds to the cash-strapped administration. The funds are specifically called for Mukhyamantri Sukh-Aashray Yojana and Mukhyamantri Sukh Shiksha Yojana.
The notice reads that temple trusts operating under the State Hindu Public Religious Institutions and Charitable Endowments Act, 1984 regularly contribute to charitable and welfare activities run by the state. It urges them to donate to the Mukhyamantri Sukh Ashray Yojana/Kosh and Mukhyamantri Sukh Shiksha Yojana/Kosh to help fund these schemes.
Notably, the Mukhyamantri Sukh Ashray Scheme, launched on February 28, 2023, by the Social Justice and Empowerment Department, aims to support elderly individuals, single women, impoverished women, and orphans.
Schemes started by the government as poll promises have now turned to temples and religious trusts to fund these promises and welfare schemes.
Not the first time
In early February, the Himachal Pradesh government made headlines for deciding to lease out Hotel Wildflower Hall, a historic property built in 1902 by Lord Kitchener, about 12 km from Shimla. On February 15, Chief Minister Sukhvinder Singh Sukhu’s cabinet approved the lease.
This is not the first controversy surrounding the property. Originally owned by GHM Batten the building was burned down in 1993 due to a short circuit. It was later redeveloped as a luxury hotel in a joint venture with the Oberoi Group under Mashobra Resort Limited. However, delays led to a dispute, and in 2002, the BJP government under PK Dhumal cancelled the contract, citing a breach of terms.
Legal battles followed, with the Himachal Pradesh High Court ruling in November 2023 that the Oberoi Group had failed to meet its obligations, allowing the government to reclaim the hotel. Since then, the state government has been looking for collaborators to lease the property and get returns from it.
Taxes in Himachal Pradesh
Interestingly in September 2024, the state government passed an amendment bill introducing new taxes on electricity and milk. The electricity duty amendment bill imposed an environment tax on energy use, ranging from 2 paise to Rs 6 per unit, and a milk tax of 10 paise per unit. The bill, which amended the Himachal Pradesh Electricity (Duty) Act, 2009, was passed in the Vidhan Sabha through a voice vote.
The opposition strongly criticised the move, calling it an additional burden on common people.
Leader of Opposition Jai Ram Thakur pointed out that the Congress government had already increased diesel prices by Rs 7 per litre, withdrawn 125 units of free electricity, and failed to fulfil its election promise of 300 free units for households.
Notably, in August 2024, the government also ended free water supply in rural areas and discontinued free travel for police officers. Additionally, it stopped providing free electricity to income taxpayers, citing financial constraints.
One of the most controversial decisions was the imposition of a cess on hydropower projects, expected to generate Rs 4,000 crore in revenue.
A state reeling under debt
The financial crisis in Himachal Pradesh has worsened under Congress rule, much like in Karnataka. Before 2022 assembly elections, party had made multiple promises, such as 300 units of free electricity for households, Rs 1,500 monthly allowance for women aged 18-60, the restoration of the Old Pension Scheme (OPS) and a minimum support price for fruits. Congress also pledged interest-free loans for young entrepreneurs and a Rs 10 crore startup fund per assembly segment. However, fulfilling these promises has strained the state’s economy.
In November 2024, the government took an extra Rs 500 crore loan, which was part of its Rs 6,300 crore borrowing limit. This loan has a 15-year repayment term, with the first instalment due in November 2029.
The state is already struggling to meet its monthly financial commitments of Rs 2,000 crore, which includes Rs 1,200 crore for salaries and Rs 800 crore for pensions. In August 2024, for the first time in Himachal’s history, the government failed to pay salaries and pensions to 3.91 lakh employees and retirees.
Fake guarantees and Congress’s questionable promises
After the INDI Alliance’s unexpected success in Uttar Pradesh during the Lok Sabha elections, many women in Lucknow gathered outside Congress office, demanding the ‘guarantee cards’ that the party had promised during the campaign.
Before the elections, Congress had distributed gurantee cards, assuring Rs 1 lakh per year to the woman head of every poor family. While some women arrived to collect their cards, others who had already received them submitted forms to claim the promised money. Some even reported receiving receipts from the Congress office after submitting their bank details.
Under its ‘Ghar Ghar Guarantee’ programme, Congress leaders reached out to 80 million households and promote the party’s 25 guarantees. One of the key promises was the Mahalakshmi scheme, which pledged a monthly transfer of Rs 8,500 to women heads of BPL families.
A similar situation was seen in June 2024 at the General Post Office in Bengaluru, where many women rushed to open bank accounts, hoping to receive this amount if the INDI Alliance formed the government at the Centre.
In March 2023, after the party approved its election promise of 200 units of free electricity, many people in Karnataka stopped paying their electricity bills. In Veerapur village near Kittur in Belagavi district, some farmers refused to pay, expecting the government to cover their bills.
Instead of learning from its mistakes, Congress seems determined to repeat them, pushing states into financial trouble. While freebies or so-called guarantees of the party might help them win elections, they ultimately harm the economy and put pressure on taxpayers.
Congress has already damaged Karnataka’s economy with such schemes, and now Himachal Pradesh is facing a similar fate. The party makes unrealistic promises and then shifts the burden onto taxpayers, leading to budget deficits and economic instability.
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