The Narendra Modi government has approved a 26 percent increase in advertisement rates for print media, the first such hike in six years, offering long-awaited relief to newspapers battered by input costs and shrinking ad budgets.

According to a Press Information Bureau statement, the decision follows nearly two years of deliberations by a Rate Structure Committee set up in November 2021. The panel examined representations from industry bodies including the Indian Newspaper Society and the All India Small Newspapers Association, factoring in soaring newsprint prices, inflation, wage costs and the shift of advertisers from print to digital. Its recommendations were submitted in September 2023.

“Higher rates for government advertisements will provide essential revenue support to print media, especially in an era of competition from various other media platforms and in view of the escalation in cost in the last few years…by recognising the value of print media in a diversified media ecosystem, Government can better target its communications strategies, ensuring that they reach citizens effectively across various platforms,” stated the PIB on Monday.

For many print outlets, especially those struggling to recover after the pandemic, government advertising remains one of the few stable revenue streams. The last revision came in 2019, when rates were increased by 25 percent over the previous structure; before that, 2013 saw a 19 percent hike.

But here’s the real takeaway: every time ad rates go up, so does the industry’s dependence on advertisers – especially government advertisers. And when the biggest spender is also the biggest power centre, journalism becomes less watchdog, more lapdog.

For many newspapers, government ads are now among the only reliable revenue streams. Newslaundry had earlier reported how the Pushkar Singh Dhami government in Uttarakhand had spent over Rs 300 crore over four years to dailies and magazines, including some with questionable circulation and outlets that parroted government propaganda.

This hike only tightens that grip.

So the next time you wonder why some newsrooms pull punches, look at who’s footing the bill. Remember: democracy survives on scrutiny. You can’t hold power to account if your survival depends on pleasing it. Newsrooms who depend on ad money will always have to calculate how much truth they can tell.

But not at Newslaundry. Here, subscribers – not corporations, not governments – pay for the journalism. No ad lifelines. No rate-hike suspense. No soft-glove coverage to keep revenue flowing.

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