The SC asserted that unrestrained Freebies ease the poor into a parasitic life, depriving them of any initiative to find work, join the mainstream, and contribute to national development.
About Freebies
- Definition: RBI defined freebies as “a public welfare measure such as that is provided free of charge”.
- However, the Election Commission of India has not defined freebies.
- Examples: Free electricity, water, public transportation etc.
Concerns about Freebies
- Fiscal Burden: Excessive freebies put a strain on state finances, leading to high fiscal deficits.
- Ex. Punjab faced financial crises due to excessive spending on freebies.
- Derails Development: Instead of investing in infrastructure and job creation, money is spent on short-term gains.
- Environmental Harm: CAG report flagged free electricity as leading to groundwater depletion (Punjab Case).
- Weaken Institutions: Loan waivers & free power weaken banks, DISCOMs (N.K. Singh).
Way Forward
- Balanced Approach to Welfare: Distinguish between essential welfare schemes (health, education, food security) & non-merit freebies.
- Institutional and Legislative Reforms: Encourage Parliamentary debate on defining and regulating freebies.
- Political and Electoral Accountability: Increase ECI’s role in ensuring transparency in electoral manifestos.