The Supreme Court of India recently criticized the increasing trend of political parties offering freebies before elections. The court raised concerns that such schemes are creating a dependent society and harming the economy. While essential welfare programs are needed, excessive handouts put a heavy burden on taxpayers and discourage people from working.
So let’s discuss the data/estimate of Freebies Schemes in our country.
A study published on SSRN highlights that in the long run, freebies become economically unsustainable, leading to high rates of inflation and a persistent rise in the prices of goods. papers.ssrn.com
Economists estimate that state expenditures on freebies range between 0.1% and 2.7% of their Gross State Domestic Product (GSDP), with less developed states incurring higher amounts despite having lower financial capacity. m.economictimes.com
The Real Cost of Freebies
Many political parties use freebies as a vote-buying strategy, offering free electricity, free water, loan waivers, and even direct cash transfers. But these so-called “free” schemes come at a cost:
✅ Higher Taxes – The money for freebies comes from taxpayers.
✅ Economic Burden – States with high freebie spending face financial crises.
✅ Less Development – Instead of investing in infrastructure, education, and jobs, governments waste money on short-term handouts.
✅ Encourages Dependency – Freebies reduce motivation for work and self-reliance.
How Can We Stop This?
🔹 Voter Awareness – Freebies aren’t truly free! Citizens must understand that these handouts are often unsustainable and harm long-term growth.
🔹 Strict Laws & Regulations – The Election Commission of India (ECI) should regulate what kind of promises political parties can make before elections. Only genuine welfare schemes with long-term benefits should be allowed.
🔹 Development Over Handouts – Governments should focus on job creation, skill development, and infrastructure, instead of distributing short-term benefits.
🔹 Public Pressure on Leaders – Citizens should demand transparency in government spending through RTI and social activism.
🔹 Rewarding Fiscal Discipline – States that maintain financial stability should receive better funding, while those misusing funds should be penalized.
Welfare vs. Freebies: The Key Difference
Not all government assistance is bad. Genuine welfare schemes, like subsidies for the poor, healthcare benefits, and education assistance, are essential. The problem arises when political parties recklessly distribute benefits just to secure votes, without considering economic impact.
The Verdict
The Supreme Court’s concerns are valid – freebies should be controlled, not completely banned. India needs a system where only essential welfare schemes are allowed, while vote-driven handouts are restricted. Instead of freebies, governments must empower people with jobs, better salaries, and skill development to create a self-sufficient nation.
💬 What do you think? Should India regulate election freebies? Comment below! 👇
#SupremeCourt #Freebies #India #Elections #TaxpayerMoney #DevelopmentNotDoles
