Feb 6, 2025

INDIA EDITION

The Freebie Trap: Short-Term Gains, Long-Term Pains

How Political Parties Recklessly Push India Into Debt Just to Win Elections

spotlight

Written By

Zara Fernandes

Published

Who doesn’t love free stuff? In a world where money rules, handing out ‘freebies’ seems like the perfect recipe for political parties to acquire popularity, glory and a big fat voter bank!. In recent years, the growing trend of political parties offering freebies to voters has sparked heated debates across India. Popularly referred to as "Rewadi Culture," a term coined by Prime Minister Narendra Modi, the practice of distributing free consumer goods has become a killer strategy to widen their voter banks.

The Economic Cost of Freebies

The allure of free goods and services may provide short-term relief to citizens, but economic experts warn of severe financial consequences. Sri Lanka’s recent economic collapse serves as a cautionary tale, where excessive welfare schemes, coupled with poor fiscal management, plunged the nation into crisis.

In India states like Andhra Pradesh and Punjab are sinking in Debt thanks to their unfeasible freebie schemes, every state has their own different scheme to grab voters attention.

  • Free electricity and water (Punjab) - promises of free electricity and water have drained the state’s resources, leaving essential sectors like healthcare and education neglected. Andhra Pradesh faces a similar crisis, with free rice and other giveaways stretching the state’s finances to the breaking point. Experts warn that these policies are starving the economy, hurting long-term growth goals.

  • Free Cows & Buffaloes (Uttar Pradesh) – The UP government distributed free cows and buffaloes to farmers as part of its livestock development program. However, due to poor planning, many recipients couldn’t afford to feed the animals.

  • Gold for Brides (Tamil Nadu & Andhra Pradesh) – Under schemes like Thalikku Thangam (Gold for Mangalsutra) in Tamil Nadu and Bangaru Talli in Andhra Pradesh, the government provided free gold to women at the time of marriage.

  • Free Scooters & Bicycles (Tamil Nadu, Rajasthan, Madhya Pradesh) – Various state governments distributed free two-wheelers to women and students, claiming it would boost mobility and education.

  • Free TVs & Mixers (Tamil Nadu) – The government once distributed free color TVs, mixers, and grinders to households, arguing it would improve their quality of life.

  • Free Land for Lovers (Madhya Pradesh) – To support inter-caste marriages, Madhya Pradesh announced a scheme where newlyweds from different castes could receive free land.

  • Free Petrol for Scooters (Telangana) – To encourage women to use two-wheelers, Telangana offered a scheme providing free petrol along with subsidized scooters.

Freebies vs. Welfare: What Sets Them Apart?

Although the concept of freebies and welfare schemes may seem quite alike it's important to make a distinction between them.Welfare programs—such as free school meals and subsidized healthcare—aim to empower the marginalized and drive long-term development goals. However the promise of free consumer goods like TVs and scooters raise some serious concerns. Experts warn that such short-term incentives may strain public finances and hinder real growth, thereby questioning the true motive behind these shortsighted attempts at grabbing popularity.

Legal and Political Challenges

The issue of freebies has also drawn the attention and concern of the Supreme Court.Quite often Political parties have made reckless promises and loud claims without any financial backing. States like Tamil Nadu and Delhi are under legal scrutiny for their generous welfare schemes, with critics warning of mounting debt and misallocated funds.

Tamil Nadu’s free laptops and gas stoves, and Delhi’s free electricity and water, have sparked debates on fiscal responsibility. Experts argue that while these schemes appeal to voters, they could strain state finances and jeopardize essential public services.

Finding the Right Balance

Despite the growing criticism, supporters argue that certain subsidies—such as free electricity for farmers and subsidized food under welfare schemes—are crucial for uplifting vulnerable populations. Experts suggest that the key lies in a balanced approach, where welfare policies are targeted, sustainable, and tailored to the needs of those who truly require them. As India continues to walk the tightrope between populist promises and economic prudence, policymakers face the challenge of prioritizing long-term growth over short-term political gains. The debate over freebies rages on, but one thing is clear: fiscal responsibility must lead the way for a prosperous and sustainable future.

Will India choose the path of careful planning, or will the allure of free goods continue to dictate its economic fate?

INDIA EDITION

Thursday, February 6, 2025

The Freebie Trap: Short-Term Gains, Long-Term Pains

How Political Parties Recklessly Push India Into Debt Just to Win Elections

Written By

Zara Fernandes

Jan 29, 2025

Published

Who doesn’t love free stuff? In a world where money rules, handing out ‘freebies’ seems like the perfect recipe for political parties to acquire popularity, glory and a big fat voter bank!. In recent years, the growing trend of political parties offering freebies to voters has sparked heated debates across India. Popularly referred to as "Rewadi Culture," a term coined by Prime Minister Narendra Modi, the practice of distributing free consumer goods has become a killer strategy to widen their voter banks.

The Economic Cost of Freebies

The allure of free goods and services may provide short-term relief to citizens, but economic experts warn of severe financial consequences. Sri Lanka’s recent economic collapse serves as a cautionary tale, where excessive welfare schemes, coupled with poor fiscal management, plunged the nation into crisis.

In India states like Andhra Pradesh and Punjab are sinking in Debt thanks to their unfeasible freebie schemes, every state has their own different scheme to grab voters attention.

  • Free electricity and water (Punjab) - promises of free electricity and water have drained the state’s resources, leaving essential sectors like healthcare and education neglected. Andhra Pradesh faces a similar crisis, with free rice and other giveaways stretching the state’s finances to the breaking point. Experts warn that these policies are starving the economy, hurting long-term growth goals.

  • Free Cows & Buffaloes (Uttar Pradesh) – The UP government distributed free cows and buffaloes to farmers as part of its livestock development program. However, due to poor planning, many recipients couldn’t afford to feed the animals.

  • Gold for Brides (Tamil Nadu & Andhra Pradesh) – Under schemes like Thalikku Thangam (Gold for Mangalsutra) in Tamil Nadu and Bangaru Talli in Andhra Pradesh, the government provided free gold to women at the time of marriage.

  • Free Scooters & Bicycles (Tamil Nadu, Rajasthan, Madhya Pradesh) – Various state governments distributed free two-wheelers to women and students, claiming it would boost mobility and education.

  • Free TVs & Mixers (Tamil Nadu) – The government once distributed free color TVs, mixers, and grinders to households, arguing it would improve their quality of life.

  • Free Land for Lovers (Madhya Pradesh) – To support inter-caste marriages, Madhya Pradesh announced a scheme where newlyweds from different castes could receive free land.

  • Free Petrol for Scooters (Telangana) – To encourage women to use two-wheelers, Telangana offered a scheme providing free petrol along with subsidized scooters.

Freebies vs. Welfare: What Sets Them Apart?

Although the concept of freebies and welfare schemes may seem quite alike it's important to make a distinction between them.Welfare programs—such as free school meals and subsidized healthcare—aim to empower the marginalized and drive long-term development goals. However the promise of free consumer goods like TVs and scooters raise some serious concerns. Experts warn that such short-term incentives may strain public finances and hinder real growth, thereby questioning the true motive behind these shortsighted attempts at grabbing popularity.

Legal and Political Challenges

The issue of freebies has also drawn the attention and concern of the Supreme Court.Quite often Political parties have made reckless promises and loud claims without any financial backing. States like Tamil Nadu and Delhi are under legal scrutiny for their generous welfare schemes, with critics warning of mounting debt and misallocated funds.

Tamil Nadu’s free laptops and gas stoves, and Delhi’s free electricity and water, have sparked debates on fiscal responsibility. Experts argue that while these schemes appeal to voters, they could strain state finances and jeopardize essential public services.

Finding the Right Balance

Despite the growing criticism, supporters argue that certain subsidies—such as free electricity for farmers and subsidized food under welfare schemes—are crucial for uplifting vulnerable populations. Experts suggest that the key lies in a balanced approach, where welfare policies are targeted, sustainable, and tailored to the needs of those who truly require them. As India continues to walk the tightrope between populist promises and economic prudence, policymakers face the challenge of prioritizing long-term growth over short-term political gains. The debate over freebies rages on, but one thing is clear: fiscal responsibility must lead the way for a prosperous and sustainable future.

Will India choose the path of careful planning, or will the allure of free goods continue to dictate its economic fate?

INDIA EDITION

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INDIA EDITION

TOP CATEGORIES

Spotlight


Sports


UNTAPPED

Send your resume at theindiaedition0@gmail.com

WORK WITH US

FOLLOW US

CONNECT WITH US

theindiaedition0@gmail.com

(+91) 8085014933