\n
Freebies In Elections<\/strong><\/p>\n By Dhurjati Mukherjee<\/strong><\/p>\n Freebies have for quite some years been playing a prominent role in electoral politics in India. Despite knowing the fact that freebies will put additional burden on the exchequer, political parties have been competing with each other in the run-up to elections, announcing a string of freebies to attract voters. Interestingly, Prime Minister Narendra Modi recently cautioned people against what he called as \u2018revadi culture\u2019 of offering freebies for garnering votes, and called it \u2018very dangerous\u2019 for the nation\u2019s development. Dealing with the issue, the Supreme Court of India recommended that stakeholders set up a mechanism for suggesting measures to the government. \n","protected":false},"excerpt":{"rendered":" Freebies In Elections By Dhurjati Mukherjee Freebies have for quite some years been playing a prominent role in electoral politics in India. Despite knowing the fact that freebies will put additional burden on the exchequer, political parties have been competing with each other in the run-up to elections, announcing a string of freebies to attract […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":{"0":"post-197625","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-features"},"_links":{"self":[{"href":"https:\/\/arunachaltimes.in\/index.php\/wp-json\/wp\/v2\/posts\/197625","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arunachaltimes.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arunachaltimes.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arunachaltimes.in\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/arunachaltimes.in\/index.php\/wp-json\/wp\/v2\/comments?post=197625"}],"version-history":[{"count":0,"href":"https:\/\/arunachaltimes.in\/index.php\/wp-json\/wp\/v2\/posts\/197625\/revisions"}],"wp:attachment":[{"href":"https:\/\/arunachaltimes.in\/index.php\/wp-json\/wp\/v2\/media?parent=197625"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arunachaltimes.in\/index.php\/wp-json\/wp\/v2\/categories?post=197625"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arunachaltimes.in\/index.php\/wp-json\/wp\/v2\/tags?post=197625"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nIn recent years, the spotlight is back on how \u201cirrational freebies\u201d, often doled out ahead of polls, can be reined in. It may be mentioned here that the 15th Finance Commission suggested the establishment of a neutral body in the form of Fiscal Council to look at the records of both the Centre and the States, although it was proposed to have only an advisory role. Power is possibly the most grotesque example of freebies, of flawed welfare economics neither guaranteeing welfare.
\nMany States are pursuing the\u00a0freebie culture. Ideally, governments\u00a0should use borrowed money to invest in both physical and social infrastructure\u00a0which will\u00a0generate higher growth,\u00a0and thereby\u00a0higher revenues\u00a0in the future so that the debt pays for itself. On the other hand, if\u00a0governments spend the loan money\u00a0on\u00a0populist giveaways\u00a0that generate\u00a0no additional revenue,\u00a0the growing debt burden will eventually\u00a0implode and end in tears. Concerned by an increasing number of States that are embarking on this\u00a0financially ruinous path,\u00a0senior bureaucrats reportedly flagged the issue that\u00a0\u2018some States might go downthe Sri Lankanway\u2019.
\nDealing with a Public Interest Litigation (PIL) on the issue, the Supreme Court, suggested constitution of an experts group with representatives from Niti Aayog, Finance Commission, Reserve Bank of India and political parties to study the impact of freebies on the tax payers and the economy as a whole and recommend measures to regulate it. It is significant to note that during the hearing, the apex court did not leave the matter entirely to Parliament but referred to the inaction of the Election Commission, which, it felt, was relying on the 2013 judgment that stated that Nirvachan Sadan can only formulate a model code of conduct at the time of elections.
\nThe PIL, which was filed ahead of the recent Assembly elections in five States, had sought a complete ban on populist measures to gain undue political favour from voters as these violate the Constitution, and the Election Commission should take suitable deterrent measures. The plea wanted the court to declare that the promise of freebies from public funds before polls unduly influences the voters, disturbs the level playing field and vitiates the purity of the poll process. \u201cThis unethical practice is just like giving bribes to the electorate at the cost of the exchequer to stay in power and must be avoided to preserve democratic principles and practices,\u201d it read.
\nDelving into the problem, one may perhaps find that the culture of freebies was started by the late Tamil Nadu Chief Minister, J. Jayalalitha, promising free saris, pressure cookers, washing machines, television sets etc, and this was quickly followed by other political parties. In recent times, the AAP swept the Delhi Assembly elections by promising free electricity, water to the voters. Lately during the 2021 Kerala Assembly elections, freebies such as subsidised rice and food kits were promised by the ruling Left Democratic Front.
\nBefore Punjab Assembly elections, the AAP promised free electricity for 300 units to the electorate and Rs 1000 per month for every woman, aged 18 years and above, if voted to power. It did have a positive effect for the party. However, this speaks volumes about the impact freebies have. And while, as is exemplified in the case of Punjab, such freebies culture can not only spell doom for the economy but is dangerous in case of a sensitive border State, AAP supremo Kejriwal, justifies it saying that \u2018giving away crores of rupees from the government exchequer to friends will lead to an economic crisis, and not providing free facilities to people.\u2019
\nA recent State Bank of India Research report observed that unsustainable farm loan waivers might be a potential recipe for fiscal disaster. States including Rajasthan, Chhattisgarh, Andhra Pradesh, Bihar, Jharkhand and Bengal have committed to spend 5 to 19 percent of their revenue receipts on unsustainable schemes. In terms of percentage of State owned tax revenue, this exceeds 50 percent for some of the States.
\nObviously, there is a need to rationalise their spending priorities, though some of the welfare schemes, if they reach the target beneficiaries may have a positive effect. The SBI report of Dr Soumya Kanti Ghosh noted that for as many as 18 States it studied, the average fiscal deficit (as percentage of GSDP) has been revised upwards by 50 bps to 4 percent for financial year 2022 with 6 States slithering towards the red line, reporting fiscal deficit more than 4 percent of GSDP.
\nIt is a well-known fact that the financial condition of many a State is indeed precarious. In the last fiscal, as many as seven States exceeded their budgeted target while 11 others have been able to keep their fiscal deficit equal or lower than their budgeted numbers. It may be noted that the Comptroller and Auditor General of India (CAG)\u00a0pointed out that in respect of some States \u201cif extra-budgetary borrowings are taken into account, the government\u2019s liabilities are way above what is acknowledged in the official books\u201d.
\nBut this situation cannot continue for long, as a result of which freebies before elections are grossly unjustified. Sensing the problem, top bureaucrats warned against the deleterious effects of announcements of freebies by various State governments, mostly before elections. They wanted the Election Commission to stop the unsustainable freebies in the greater interest of the economic health of the States.
\nA question may arise that these freebies are mostly extended to people living in rural and backward areas and thus benefit the poor and the economically weaker sections (EWS). This argument is not quite justified as irrational freebies eat away the development budget of the indebted States that do not have sufficient funds for welfare schemes as also for undertaking development work in rural and backward areas. It is thus quite obvious that the\u00a0more States spend on freebies, the\u00a0less they have for spending on physical infrastructure\u00a0such as, for\u00a0power and roads, and on social infrastructure\u00a0such as education and health, which can\u00a0potentially improve growth and generate jobs.
\nThe present step by the apex court should have come much earlier, as the recommendations of the expert committee may help regulate freebies. Moreover, the political parties should not be allowed to announce freebies before elections at their will without the prior consent of the Election Commission as also getting such decisions passed in their respective State Assemblies. Development and a level playing field should not become a victim to freebies. \u2014 INFA<\/p>\n