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The city, a federally-administered territory, has been governed by the AAP since 2013, with voters backing its strong record of welfarism.

The jury is still out on whether 'New Welfarism' is hurting the exchequer.

Economist Arvind Subramanian calls this Mr Modi's "New Welfarism", funding essential private items like toilets, rather than expanding public goods such as primary education and healthcare.

To be sure, "New Welfarism" stands apart from the traditional welfare models in Europe or the US.

"All that requires institution building, which is a hard slog. So while there is much that is commendable about the New Welfarism, one worries that it might be at the cost of building systems that matter for long-term productivity and growth," he said.