The End of Subsidy Politics? Odisha at a Turning Point
By | Sashi Sekhar Samanta |
For decades, Odisha’s political landscape has been shaped by a quiet but powerful force—subsidy politics. From rice at ₹1 to free school uniforms, pensions, KALIA assistance, Mission Shakti loans, health insurance, and countless welfare schemes, subsidies became not just support systems but political identities. Parties crafted their image around what they could “give,” not what they could “build.” Welfare became both a lifeline and a vote-line.
But today, as Odisha faces economic strain, rising expectations, and a generational shift in voter behaviour, an important question demands attention: Is Odisha witnessing the beginning of the end of subsidy politics? The answer is not simple. The politics of subsidies is not collapsing overnight. But a transformation—slow, uneven, but unmistakable—is underway. Odisha is at the threshold of a new political moment where welfare alone cannot define political success. Development, jobs, accountability, and long-term economic planning are rising to the top of public demand.
The Subsidy Era: How Odisha Became a Welfare State . To understand the shift, we must first understand the foundation. Over the last 25 years, especially under BJD rule, Odisha built one of the strongest welfare networks in India. It wasn’t merely political strategy—much of it was moral and necessary. Odisha, once among the poorest states, needed safety nets.
The logic was clear: Food security (Re 1 Rice, later ₹1/kg rice) prevented hunger. Education support increased school enrolment. Free health schemes reduced catastrophic medical expenses. KALIA helped millions of farmers survive seasonal hardship. Mission Shakti empowered rural women and built a political constituency. Subsidized power and housing improved quality of life. These schemes transformed Odisha in undeniable ways. Poverty levels dropped. Malnutrition reduced. Maternal deaths declined sharply. Women entered the workforce. Farmers gained financial stability. Welfare politics created a stable social base—and for years, a stable political base.
The Changing Voter: Welfare Is Not Enough Anymore . The biggest shift is generational. Odisha’s youth—nearly 60% of its population—grew up in a world where basic subsidies were normal, expected, not extraordinary. They are not grateful for subsidized rice; they assume it as a right. Their aspirations stretch far beyond welfare.
They ask: “Where are the jobs?” , “Why are so many young people migrating out?” , “Why is the private sector so weak?” , “Why are salaries so low?” ,“Why does development move slowly?” , For this generation, subsidy is functional but not inspirational. The middle class, too, has shifted. Rising costs of living, education expenses, and unemployment have made them expect structural economic solutions, not token benefits. This shift was visible in recent elections—welfare did not automatically translate into votes. The political landscape has become too complex to be guided by subsidies alone.
The Rising Burden: Can Odisha Afford Endless Subsidies? Another reality driving the decline of subsidy politics is economic pressure. Odisha’s welfare model, while morally legitimate, is financially heavy. Subsidies consume a large portion of the state budget. As more people demand benefits and as costs rise, the government faces tough choices: reduce fiscal space for infrastructure , borrow more ,cut developmental programs ,delay capital-intensive projects. When subsidy systems expand endlessly, they eventually reach a breaking point. Odisha is not there yet—but the signs of strain are becoming visible. The government needs revenue. The public needs development. Welfare alone cannot sustain prosperity.
The Private Sector Question: Growth Without Engines , Odisha’s economic structure is still dependent on mining, minerals, and central transfers. The private sector remains subdued. Startup ecosystems are small. Industrial diversification is limited beyond steel, aluminium, and textiles. Without strong private sector growth, job creation becomes dependent on government schemes. This creates a cycle where subsidies fill the gap that jobs should fill. But today’s youth does not want to depend on government welfare forever—they want dignity through opportunity.
Thus arises the new political equation: Welfare = survival , Opportunity = aspiration. The voter is shifting from survival politics to aspiration politics.
Political Competition: Why Subsidy Politics Must Evolve , With BJD out of power after two decades, Odisha has entered a competitive political phase. In this new environment, no party can rely solely on welfare promises. Every party—BJD, BJP, Congress, and emerging regional fronts—must craft broader narratives: employment generation , investment attraction , entrepreneurship , innovation , industrial expansion ,governance transparency .Subsidies still matter, but they are no longer the deciding factor. The “freebies strategy” has lost its guarantee. What Will Replace Subsidy Politics? The end of subsidy politics does not mean the end of welfare. It means a transition.
Here is what Odisha’s new political model may look like:
1. Welfare + Development (not welfare vs development)
A balanced model where subsidies support the poor but do not overshadow growth policies.
2. Investment-Led Politics
Political capital will come from attracting industries, IT hubs, startups, and MSMEs.
3. Job-Centric Governance
Parties will be judged on employment numbers, not only welfare numbers.
4. Youth-Centric Policies
Skill development, innovation labs, internships, and global partnerships will matter more than rice schemes.
5. Accountability Over Announcements
Voters increasingly demand result-based politics.
6. Digital Governance
Transparency through technology will shape voter trust.
Parties will integrate Odia identity with modern growth aspirations. This is the political future Odisha is moving toward. Will Subsidies Disappear Completely? No. But They Will Be Redefined. Welfare in Odisha—especially for farmers, women, tribals, and vulnerable groups—will continue. What will change is the weight voters assign to subsidies.
Subsidies will shift: from free items to access to opportunities , from consumption-driven to capacity-building ,from political charity to people’s rights
For example:
• instead of free rice, subsidized farm technology
• instead of free cash transfers, startup seed funds
• instead of free school bags, quality digital education
• instead of low-interest loans, skill-linked employment pipelines
• The new welfare model will be transformative, not transactional.
Odisha Is Entering a New Political Era : Subsidy politics once shaped Odisha’s modern history. It uplifted millions. It stabilised society. It gave political identity to governments. But times have changed, and voters have changed with them.
The new Odisha—young, ambitious, restless, aware—is asking:
“What next?”
They want growth—not just guarantees.
They want dignity—not dependency.
They want opportunity—not only assistance.
The end of subsidy politics is not the end of welfare.
It is the beginning of a smarter, deeper, and more future-ready political culture.
A new Odisha is emerging—one where political success will depend not on what is given, but on what is built.
