Should there be limits on ‘freebies’
The HinduWhile hearing a petition demanding the de-recognition of political parties that promise “irrational freebies” to voters, the Supreme Court recently drew attention to the substantial fiscal cost of freebies. Also, even if people are sitting at the top of the income distribution pyramid, you could still see something that the petitioner describes as a “freebie” as a welfare measure. But I’m not really sure that the fiscal situation there was triggered by welfare spending alone There are many other things happening there which led to the crisis. Ultimately, we need to have a good tax framework, where you have much better resources for more social sector expenditure while also ensuring medium-term debt sustainability. What is your view on the Supreme Court’s suggestion to balance welfare spending and the loss that such spending may cause to the public exchequer?