Why political freebies don't work
India TodayFrom free rations up to five years to free ghee and gas cylinders to smartphones and tablets—this poll season, like many others, is about offering freebies to woo voters. To woo voters, the BJP and Samajwadi party are offering freebies that include free gas cylinders, a kilo of ghee, free rations for five years and so on. In Punjab, the Aam Aadmi Party has promised free medicines, free parking, pension increases of Rs 2,500, free education in primary schools and no tax on electricity bills. According to the Reserve Bank of India, the combined fiscal deficit of all the states rose from 1.93 per cent of gross state domestic product in 2011-12 to 3.5 per cent in 2016-17, over the three per cent threshold required to be maintained under the Fiscal Responsibility and Budget Management Act.