Not all welfare spendings are ‘freebies’, some are investments: Palanivel Thiaga Rajan

Critics argue that rising welfare commitments are straining the State’s finances. How do you justify this model?

The recent debate on this began when the Prime Minister [Narendra Modi] went on TV and said there has been a “revdi culture.” Even when I was an MLA, I had detailed discussions where I explained that not all social or welfare spending—whatever label we use, including “freebies”—can be categorised in the same way. Some expenditures must be seen as investments in human development, such as the noon meal scheme or providing laptops to students. Others function more like social protection or insurance schemes—such as health insurance support, marriage assistance, or free rice for the poor.

Therefore, it is important to distinguish between different types of welfare and assess which ones genuinely add value. In fact, I cited a specific example of what I consider a poorly designed scheme: providing ₹25,000 per woman to purchase a scooter or powered two-wheeler. This runs counter to the broader policy objective of promoting public transport. Tamil Nadu already has a significant imbalance—around 2.9 crore registered two-wheelers for approximately 2.3 crore ration cards. The effectiveness of such schemes depends on their design, intent, execution, and context. For instance, in remote areas where there are no buses, supporting access to two-wheelers may make sense. But in a State like Tamil Nadu—one of the most urbanised in the country, with more registered two-wheelers than families and an underutilised public transport system—the same policy may not be appropriate.

If a government focuses only on welfare spending, you will see immediate improvements in consumption, but it will not deliver long-term economic benefits. In a State like Tamil Nadu, where private consumption forms a significant share of the economy, increased transfers—such as the Kalaignar Magalir Urimai Thogai (monthly rights grant of ₹1,000 for women heads of family) and similar schemes—can boost consumption in the short term.

How do you view actor Vijay’s entry into politics?

As someone who believes democracy is the best model of a republic, I welcome anyone who enters the public sphere and is willing to stand before the people and seek their approval. I welcome new entrants and new ideas. If the entrant is a hugely popular actor, that is even better. Why even better? Because the people who are least engaged in politics are the youth. By definition, older people have fewer years ahead of them, whereas the youth have decades ahead them. So, anything that increases youth engagement in politics, in my view, I consider it a good thing. Ultimately, people will vote based on who they find reliable, experienced, and impactful. If he is a serious politician, I hope he is here for the long term. Even Perarignar Anna (former Chief Minister C.N. Annadurai) said, even for a strong government, a powerful opposition is a good thing.

What about the DMK, is it getting younger?

The party, I think, is changing—particularly since the Deputy Chief Minister [Udhayanidhi Stalin] has been driving significant change. This shift is attracting many young people to the party, which is good, as it was something that had been sorely missing before.

As a legislator, what tangible changes have you delivered for your constituency, Madurai Central, in the past five years?

I put out a detailed report every six months at a micro level—covering every individual, every household, and every applicant for every scheme. In 2021, I made three key commitments: completing the drinking water scheme; improving and finalising the underground drainage (UGD); and conducting the long-delayed Madurai Meenakshi Amman Temple Kumbabhishekam. The first has been achieved. Today, Madurai city gets more drinking water than it requires. Even recently there were reports that the Madurai Commissioner is thinking of not taking the old Cauvery scheme water any more because we have about 12 lakh people and 130 LPCD (Litres Per Capita Per Day). At this point, the macro work on that is done. However, the problem now lies in micro-level—laying pipelines to every household and upgrading distribution systems.

The UGD project has proved far more complex. It was originally initiated in 2010 under the then AIADMK Mayor, now MLA, Rajan Chellappa. The existing infrastructure is inadequate, and notably, the master plan for Madurai’s stormwater and UGD systems dates back to 1908 during the British era and after that there has not been a profound rethinking. Upgrading integrated systems like stormwater drainage and underground drainage is extremely challenging, especially ensuring that the two systems do not mix. Once they do, particularly during monsoon surges, the situation becomes unmanageable.

During my tenure as Finance Minister, I allocated funds and initiated surveys to prepare Detailed Project Reports (DPRs). We now have two DPRs—one for a fully integrated UGD system, including multiple sewage treatment plants, and another for a separate stormwater management system, including canals. For a city like Madurai, these are long-term projects spanning 20-30 years. The first phase is set to begin shortly and has already been put out for tender.

As for the temple Kumbabhishekam, work is progressing. The mandapam will open soon (that was damaged in fire). We sourced pillars from a quarry in the Rasipuram region that matched the temple’s original stone, enabling us to carry out the restoration appropriately.