Public Money, Political Credit: Who Really Pays for Welfare Schemes?
- Knowtaxx Consultancy
- 7 days ago
- 2 min read
In 2025, Bihar announced a massive direct benefit transfer (DBT) scheme: ₹75,000 crore earmarked for 75 lakh women, each receiving ₹10,000. The announcement grabbed headlines, and the ruling party sought public applause. But an essential question remains unasked: Whose money is actually being distributed?
The answer is straightforward: It is taxpayers’ money. Every rupee comes from the collective contributions of citizens and businesses through income tax, GST, excise duty, corporate tax, and a host of indirect levies. Yet, when governments roll out welfare schemes, the credit is too often framed as a personal gift from political leaders.
Why Political Branding of Welfare Is Problematic
Public welfare is a legitimate and important function of government. However, when schemes are stamped with party logos, leader photographs, and slogans, the source of funds is blurred. This misrepresentation creates three major issues:
Erosion of Democratic Fairness – Welfare benefits appear tied to political loyalty rather than citizenship, subtly turning rights into favours.
Distortion of Accountability – Politicians take undue credit, while the true financiers—taxpayers—remain invisible in the narrative.
Unhealthy Precedent – Branding welfare as a political gift undermines trust in institutions and reduces citizen awareness of how public finances are managed.
Numbers That Speak: Major Welfare Schemes
To see the scale of taxpayer-funded welfare, here’s a snapshot of recent schemes across states:
(Note: Amounts represent scheme-specific allocations announced by respective state governments.)
Reforms for Fairer Recognition
If welfare is to truly serve citizens without being politicized, systemic reforms are needed:
Neutral Scheme Communication – Announcements should be made in the name of the Government of India/State, not specific leaders or parties.
No Political Logos – Schemes should avoid party colours, slogans, or imagery.
Transparent Audits – Public audits should be easily accessible to track how taxpayer funds are spent.
‘Taxpayer Credit’ Acknowledgment – Every scheme could include a simple line: “Funded by the people of India, through their taxes.”
Such steps would strengthen both democracy and financial literacy, reminding citizens that welfare is a right, not a political favors.
Conclusion
Welfare schemes are vital for social justice and inclusive growth. But they must be seen for what they are: redistribution of public money collected from taxpayers. When politicians claim personal credit, it distorts democratic accountability and weakens financial awareness.
At KnowTaxx Consultancy, we believe in empowering citizens with financial clarity. Recognizing who really funds welfare is part of that empowerment.
So, let’s ask ourselves:
Should taxpayers, not politicians, get the real credit for welfare schemes?
Share your views in the comments—we’d love to hear your perspective.
Comments