Poonam I Kaushish
infaservice1@gmail.com
Beware Voters: With high-octane poll tamasha in West Bengal, Assam, Tamil Nadu and Kerala soon, be ready to open your purse strings as Parties and netas are busy rolling out a perfect electoral cake iced with populist schemes, lip-smacking freebies galore for all. Merrily converting political sops into vote percentages wherein social and economic upliftment is weighed on vote-bank scales, as populist hand-outs yield better electoral rewards than reasoned policies and sustainable programmes. After all, our money is neta’s money! Sic.
This analogy was brought to the fore by Supreme Court’s outburst against the “freebies” culture engulfing the country while hearing a case filed by Tamil Nadu Thursday defending its right to provide subsidized power which is prohibited by a Central law. It chastised State Governments for distributing freebies indiscriminately without even distinguishing between haves and have-nots.
Wondering how revenue deficit States find money to splurge on largesse, it pointedly asked: Are welfare schemes targeted, transparent and fiscally sustainable? Are you following an “appeasement” policy without a thought for the public exchequer ahead of elections? Where is the money coming from? Why give affluent freebies? Why do freebies come to their pockets first?
Instead, is it not States duty to spend money to develop infrastructure, roads, hospitals, schools, medical colleges? Essential services for poor are different from indiscriminate largesse aimed at electoral gains. Is it not high time States revisit these policies?
Recent examples: Free electricity up to 200 units per month and monthly unemployment allowance for graduates and diploma holders Karnataka, monthly cash transfer to women Odisha, direct cash transfer to women heads of households Madhya Pradesh. Farm loan waiver in Punjab, Karnataka etc alongside free ration distribution in Tamil Nadu, Chhattisgarh.
Questionably, should our hard-earned tax money be used to boost Parties electoral vote-banks? Shouldn’t leaders, Parties pay from their pockets or funds? Are freebies different from subsidies? Are they good and bad hand-outs? Who decides?
True, the Constitution envisions India as a welfare state through Article 38, which directs State to promote social, economic and political justice and reduce inequalities and Article 39 which ensures equitable distribution of resources and prevents concentration of wealth. Hence, these measures are not appeasement but genuine support for people in need.
Certainly, Parties are obliged to be seen as populist in the no-holds-barred free-for-all electoral race, as it would be stupid to wish away political lollipops to entice voters. Correct, cheap rice, wheat, food or free electricity assurances are justifiable. Government help through subsidies like free education, healthcare and cash transfers can help vulnerable groups survive economic distress, reduce regional and socio-economic disparities, support inclusive growth and in the long run social mobility.
Aren’t such concessions imperative in a country where 70% struggle with poverty and inequality and hungry stomachs rummage in garbage bins for rat-infested left-overs’? Is it not our leaders’ duty to take care of citizens?
But from the appeasement perspective one should never mistake political rhetoric for reality. Politicians cry hoarse for “better deal for poor.” Those who want water have been given watershed management programmes. Those who want naukri have been handed G RAM G. Debt-laden farmers have got loan waivers. More trees, not coveted mangoes!
Freebies are generally consumption-oriented rather than productivity-oriented, as they focus more on providing immediate material benefits instead of creating long-term assets or income-generating capacity.
Moreover, excessive freebies strain State finances and reduce funds for long-term development like infrastructure and health. Poor targeting and unplanned spending can increase deficits and public debt. Over time, such measures may encourage dependency and prioritise short-term electoral gains over sustainable economic growth.
As it stands many States operate under revenue deficits. Excessive free schemes reduce funds for infrastructure, hospitals, and schools and employment generation. Diverting funds for short-term electoral gains may hamper long-term national development. Think: The Economic Survey 2025-26 states spending on unconditional cash transfers and various populist freebie schemes by States would amount to Rs 1.7 lakh crore.
Besides, there is a lack of distinction between affluent and poor who can afford to pay and those who cannot. Consequently, by providing free electricity without distinguishing between the two sections amounts to appeasement rather than welfare. If States want to give subsidies, they should clearly provide for them in the budget. Announcing benefits suddenly, without proper planning, leads to financial uncertainty and can disturb systems like electricity tariff setting.
Further, continuous freebies: free food, cash transfers, scooters-utilities might result in dependency culture, discourage work culture and weaken nation-building by reducing incentives for productive engagement. Alongside, mounting public debt today could burden future generations. Thus, when welfare turns into competitive populism, it risks harming economic stability.
However, given the level of dishonesty, populism and irresponsibility which increasingly governs our political system along-with a leech-infested environment of the uundata takes it all and the economic logic there is no such thing as a free lunch, the measures announced are invitation to disaster as a populist scheme is invariably paid for either in the form of higher taxes or increasing inflation.
Underscoring, what ails India and its burgeoning poor is not poverty, which can be corrected, but the ruthless heartlessness of our netagan who not only lack humility and empathy for the garib. Worse, it exposes their sheer ennui and paucity of ideas along-with accentuating their moral bankruptcy. And a perspective completely divorced from reality.
With India at the cup of becoming the third largest economy in the world, ironically, many are far from basic economic security. Politically, convenient acts of trying to prioritise one cause without the other will not help. Opportunism or hypocrisy is flogged while others are left scot-free will only worsen heartburn and trust deficit as many are far from basic economic security.
Plainly, we pay taxes for growth and development, better educational institutions, health care, hospitals, infrastructure etc. By providing voters free candies citizens have become dependent on netas resulting in no empowerment. Consequently, people are unable to critically evaluate leaders.
What is needed is a fundamental change in politics rather than throwing rules at a problem which has its origins in political economy. If “freebies” are not checked now the gap between overall growth and mass fortunes will only widen. Clearly our leaders must differentiate between essential welfare and populist hand-outs based on social utility and long-term impact.
Integrate all subsidies into transparent budgetary frameworks and target benefits to genuinely vulnerable sections, avoiding universal subsidies for the affluent. Along-with encourage conditional and outcome-based transfers, linking benefits to education, health or skill development and introduce sunset clauses and periodic review mechanisms for schemes.
Time now for politics and democracy to reinvent itself to manage this problem. Outbursts and grandstanding, even if well intentioned, will not help. Strengthen voter awareness vis-à-vis the opportunity cost of excessive freebies and ensure disclosure of fiscal implications in Party manifestos.
High time all political stalwarts, leaders, Parties and ideologues revisit everything and have a mechanism to spread welfare effectively. Say, 25% revenue should be dedicated entirely for development: roads, irrigation et al. Else we will be hampering the larger welfare obligations of the Government if we keep on distributing largesse without a care. There has to be a balance.
Time to draw a ‘lakshman rekha’ on vote-bank politics as democracy cannot allow exercise of public funds as private spending. What is needed is sincere introspection and statesmanship. (INFA)
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