Ranbir Singh Pathania
‘To be or not to be’ is a famous Shakespearean quote. Everybody is on tenterhooks to know how Supreme Court cracks the jigsaw puzzle on ‘freebies’. It is hearing a petition filed by a public spirited lawyer seeking ban by Election Commission of India on political parties promising ‘freebies’. Aam Aadmi Party has too has intervened in the case with all guns blazing.
India is a welfare state. This is what Directive Principles contained in Indian Constitution say. Anyhow, it became a ‘socialist state’ in 1976 with the 42nd constitutional Amendment.
Nowadays, the million dollar question remains – If we are heading towards a competitive ‘revdi’ culture. Rob Peter to pay Paul. We tax one class and give freebies to another. This is what precisely politics of ‘freebies’ pivots around.
What PM said, while speaking during inauguration of expressway in Jalaun district of Uttar Pradesh, “People of revdi culture will not build expressways, airports or defence corridors for you. People of revdi culture feel that by distributing free revdis to people, they can buy them. Together we need to defeat this thinking.”
Arvind Kejriwal was also quick to retort at the drop of the hat, “I’m giving free and quality education to the children of poor and middle-class households in Delhi. I want to ask people, am I distributing free revdis or setting the foundation of the country?”
History of freebies: – NT Rama Rao’s poll promise of providing rice at a paltry cost of two rupees per kilogram. And all-famous Amma canteens in Tamil Nadu are instances of ‘freebies’ culture in India.
Anyhow, it started with Kamaraj, Chief Minister of erstwhile Madras state, introducing sops in the form of free education and free meals for school students between 1954 to 1963.
In 1967 elections, DMK founder CN Annadurai offered 4.5 kg of rice for Re 1 to the voters.
During 2006 state elections, DMK promised colour televisions to its voters. Caught in a more vicious ring of one-upmanship, DMK and its rivals indulged in ever more indulgent tactics. Statistics disclose that DMK spent over Rs 3,340 crore on 14-inch colour television sets between 2006-2010.
Its rival AIADMK squandered over Rs 1,200 crore on procuring 7,84,000 laptops for students from 2012-2013.
Anyhow, the entire concept has taken a new turn with the birth of AAP. Mr Kejriwal calls it as ‘Delhi model’. And obsession of brand ambassador of Delhi model is such that he moots a proposal to Delhi, LG, citing invitation from an international Mayor’s conference to deliver a lecture thereupon.
India seems to be slowly slipping into a sort of competitive politics amongst political parties to shower freebies and bounties upon the gullible voters. Not to address the harsh realities and challenges faced by the nation as well as ‘we the people.’
AAP’s criticism of Modi:- There is other side of the coin too. AAP has tried to accuse Modi of offering freebies to Tata. Mamta went hammer and tongs against the then Buddhadev government against setting up of Nano project on Bengali Land. The proposed Nano plant was ultimately shifted from West Bengal to Sanand in Gujarat in 2008, ostensibly, at the personal initiative of the then Gujarat Chief Minister. And time bears testimony as to how Sanand industrial region has emerged as a major manufacturing hub. It led to mushrooming of automotive and other ancillary industries in Sanand with a big push to local employment and bigger contribution to the Gujarat economy too. While Singur continues with its predominantly agrarian-based practice and economy.
Same is the case with Satyam Computers. Way, back in the nineties, it was a highly successful IT firm which ultimately collapsed and shut down in 2015. This firm was ultimately taken over by government and then given to Mahindra. It is now Mahindra Satyam. Today, it earns profits, generates employment and contributes to economic growth of the country.
Lakhsmana Rekha for freebies: –
Populist governments do roll out creamy proposals. But we should be aware and and apprehensive of the ‘Lakhsmana Rekha.’
Let us go through a report of CRISIL which says that most states are in precarious debt situations, which will constrain their ability to spend on more significant public welfare measures.
In its report prepared against the backdrop of Sri Lanka’s debt crisis, the RBI has linked the dire condition of state finances to “freebies”, particularly power subsidies that have ballooned the dues. The Sri Lankan government had gone for massive tax cuts and provided several free goods and services. The economy collapsed and the heavily indebted country defaulted on its payback commitments.
Another example is the South American oil-rich country of Venezuela that was prosperous till 1980. Successive governments then chose to offer their people almost everything free. Corruption became all-pervasive. Loan waivers further damaged the economy. The economy is yet to recover.
Against this backdrop, the Supreme Court, while hearing a case in 2013, said, “Budgets for freebies are going above regular budgets. This disturbs the level playing field. Freebies, undoubtedly, influence all people. It shakes the root of free and fair elections to a large degree.” The Supreme Court asked the Election Commission to frame guidelines in consultation with political parties.
While hearing the present case, SC moots idea of an expert panel – with representatives from Election Commission, Union government, Reserve Bank Of India, Finance Commission, Law Commission among others – to brainstorm and suggest the way ahead.
So, the lead question remains. Are we heading for a crash? Although, there is a thin diving line between practicing populism and doing ‘politics of welfare’.
Is it that India of 21st century aspiring to become a ‘vishavguru’ shall have its foundations soaked in ‘freebies culture’?
Will there be no check for government’s practicing populism at the cost of public exchequer?
Enticing people with freebies at the cost of public exchequer is bad politics, bad economics and bad ethics too.
PM’s clarion call of ‘Aapda Mein Avsar’ : The entire world was bogged by fears and uncertainties. Modi emerged as a leader, propping up our conviction to stand up. His gargantuan Atmanirbhar package focuses on building of capacity, job creation and economic strengthening and skill development. And not a freebie infested India. Providing free ration to 80 crore population of the country was another trail-blazer. It reduced propensities of deaths due to hunger. The masterstroke remarkably worked. India was adjudged a global leader in managing Corona.
Way ahead:- We need to put our heeds together and strike out a solution. The focus of the governments and the political leaders needs to be on generating growth, long term as well as short term, building infrastructure, generating employment, filling rich- poor gap and above all building the capacity and capability of India, as a nation.
‘Earn more and spend more’ is the basic driving force against PM’s resolve of ‘skill development’ and ‘Stand Up India’. Although dividing line between freebies and welfare is very thin. These two gospels lead us to light at the dark end of the tunnel.
We need to have a strong, vibrant Election Commission, a robust public opinion in support of fiscal prudence. We need to have consensus and our priorities for ‘politics of welfare’ clearly cut out.
Let the governments too strictly adhere to it while building up support in favour of directive principles contained in the Constitution of India.
(The columnist practices law in the J&K High Court and was Member of 11th J&K Legislative Assembly.)