AAP manifesto: Kejriwal's promises are fine, but where will he get the money?

New Delhi: Highly discounted electricity, free water, free Wi-Fi connectivity, guaranteed minimum wages – you name it and the AAP has it in its manifesto. However, it does not set a deadline for itself to fulfill the promises. Too good to be true? Yes, say experts and political rivals.

Financial experts have already started questioning the source of funding for the lofty announcement made by AAP chief Arvind Kejriwal.

“AAP’s manifesto is nothing but a bundle of lies. Those who don’t have to form a government can talk frivolous. There is no mention from where funds would come to implement those promises. This manifesto is an attempt to mislead voters, but now people won’t get into the trap. The public will answer these lies on February 7,” BJP’s national vice president Prabhat Jha told Firstpost.

The AAP’s Manifesto 2015 is almost a reprint of its previous one. “This manifesto can only be termed as a statement of untruth. The manifesto clearly shows that they don’t know anything about Delhi,” remarked senior Congress leader JP Aggarwal.

Like in the past, the AAP manifesto has promised a reduction of consumers’ electricity expenditure by 50 percent through audit of Discoms, rectifying electricity bills and other measures. It has also promised 700 litres of free water per day to every household.

“It’s always easy to say than do. Delhi is a power deficit state and is not capable of producing the electricity required. So it has to buy at a higher price from other states. Same is with water. Delhi buys water from UP and Haryana. Does AAP have any plan from where it’ll arrange funds to provide discounted electricity and free water?” questioned a former member of Delhi Electricity Regulatory Commission, requesting anonymity.

In one of his blogs when the last time AAP had formed the government in Delhi in December 2013, best-selling Indian author Chetan Bhagat, also an IITian, had questioned: “AAP announced free water, and a bizarre subsidy-based cut in electricity tariffs in Delhi. Some estimates say this could cost thousands of crores a year… The cheeky accounting and subsidy-based reduction was irresponsible. If the AAP tariff decision is extended pan-India, the cost could be lakhs of crores a year. Such moves can not only wreck the country’s finances, they will send the wrong signal to private players who will shun investing in India’s electricity sector. It helped AAP win some instant applause, but did it help India?”

Veteran journalist Vinod Mehta has tweeted after the release of manifesto: “Kejriwal promises to put up 15lac CCTV cameras in Delhi. Estimated Cost- 40000Cr. Yearly maint & monitoring cost- 12000Cr. Source of funds (sic)?”

Chartered accountant and tax consultant Abhishek Aneja said, “The main source of revenue in Delhi government is value-added tax (VAT) and state excise duty it earns from selling liquors, etc. For a government to provide subsidised electricity, free water, free wi-fi connectivity, etc funding has to be done from state revenue. So, either the government would have to increase its tax base or cut its spending. But, when several freebies will be offered how could there be a cut on spending? So, to fund these promises, the government has to go for the taxpayers’ money.”

Meanwhile, the AAP has also promised to reduce the rate of VAT in Delhi, which would be the lowest in the country. “Now, if the government reduces the VAT rate, the revenue will come down. So, how it would fund so many free projects? Does AAP have any revenue model to fuel the freebies promised in its manifesto?” Aneja questioned.

“If AAP forms government in Delhi, is it going to get foreign funding to fund its ‘free projects’?” asked GV Shekhar, a retired bank manager.

Probably, AAP’s initial members, who were an integral part in the party’s planning process, have the answer.

“The manifesto talks about Swaraj and delegating power to Mahalla Sabhas. The concept is good. But, during its 49-day government, AAP didn’t set any institution to implement Swaraj concept. Instead, its volunteers wearing topis, reportedly barged into operation theatres to challenge doctors that created ruckus. Is this the model, AAP wants to implement? There is lack of Swaraj itself within the party that led to so many exits and dissension. The party didn’t have any revenue model to fund its promises even in 2014,” remarked Surajit Dasgupta, AAP’s former National Council member.