Freebies can become burden for future, says former RBI Governor
2 years, 4 months ago

Freebies can become burden for future, says former RBI Governor

The Hindu  

Former Reserve Bank of India Governor D. Subba Rao on Monday sought to caution how freebies unless targeted can become a burden for future generations. Mr. Rao, responding to queries after delivering an address on India @75 - Marching Towards $5 Trillion Economy, said this pointing to how the Prime Minister has triggered a debate on the important issue. To a query on the Goods and Services Tax, Mr. Rao said it is a challenge for the government to generate tax revenue to meet obligations and at the same time keep rates low enough for making business and industry viable. Increasing investment, improving productivity as well as education and health outcomes; creating jobs; raising farm productivity; maintaining macroeconomic stability; managing global mega trends and improving governance are key challenges to be addressed, he said.

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History of this topic

People must weigh immediate benefit vs long-term gain: Nitin Gadkari on freebies
1 week, 4 days ago

People must weigh immediate benefit vs long-term gain: Nitin Gadkari on freebies

India Today  

Road Transport and Highways Minister Nitin Gadkari on Friday cautioned voters about political parties offering freebies ahead of elections, urging them to weigh the lure of instant gratification against the benefits of long-term policies. With political parties increasingly resorting to the freebie pitch to woo voters, people also started to have expectations and vote for the party which they see …

Freebies are not fiscally sustainable but there’s no need to ban them
1 month, 1 week ago

Freebies are not fiscally sustainable but there’s no need to ban them

Live Mint  

In the lead-up to elections, Indian politics frequently centres around promises of state- Such handouts have become a staple of political manifestos, offering immediate relief to certain groups. However, Delhi’s relatively high per capita income of ₹414,711 allows the government to fund such schemes without much fiscal strain. Singapore’s model demonstrates how institutional frameworks can ensure that welfare benefits are …

How welfare schemes and freebies are trumping development issues in Andhra Pradesh polls
7 months, 2 weeks ago

How welfare schemes and freebies are trumping development issues in Andhra Pradesh polls

Hindustan Times  

The lack of a defined capital city for Andhra Pradesh, even after 10 years of the bifurcation of the combined state, failure to complete the Polavaram irrigation project on the Godavari river, inadequate infrastructure and power supply, a lack of drinking water, hefty power bills and rising prices of essential commodities are some of the issues the people of the …

Ex-RBI Governor bats for imposing restraints on freebies by political parties, gives THESE suggestions
8 months ago

Ex-RBI Governor bats for imposing restraints on freebies by political parties, gives THESE suggestions

India TV News  

Former Reserve Bank of India Governor D Subbarao said the Modi government should come out with a 'White paper' to generate consensus among political parties on the issue of giveaways or freebies. On some of the states crossing Fiscal Responsibility and Budget Management limits, he said states and the central government should maintain fiscal discipline and the FRBM targets should …

Why should freebies be opposed?
1 year, 3 months ago

Why should freebies be opposed?

Deccan Chronicle  

A news story in a Tamil newspaper caused a flutter last week. Hastening to answer these two questions that the debates on social media threw up and the criticism of some politicians raised in other forums, too, I would say ‘no.’ Giveaways, gifts, free lunches and compliments are part of human civilization and sloth among people cannot be blamed on …

Freebies versus development: How 'Revdi' culture trades off development and results in unsustainable state finances
1 year, 4 months ago

Freebies versus development: How 'Revdi' culture trades off development and results in unsustainable state finances

Firstpost  

Given the poor fiscal health of our states, the ethics of offering inducements to voters without stating the impacts needs to be debated. Karnataka deputy chief minister D K Shivkumar’s assertion that delivering on poll promises will eat up all available resources points to the Revdi culture in Indian politics, and its dire impact on states’ finances. Fifteenth Finance Commission …

Doing Freebies Math: Why there are no easy solutions
1 year, 10 months ago

Doing Freebies Math: Why there are no easy solutions

India Today  

While releasing his recent book, BJP MP Varun Gandhi made a strong pitch for regulating freebies culture. In October 2022, ECI released a standard pro-forma to be used by political parties to disclose how they would fund their poll promises, a move that provoked heated response from opposition parties, with some of them calling it an “interference in their democratic …

Freebie is not an issue, issue is how will you give it: Nirmala Sitharaman
1 year, 11 months ago

Freebie is not an issue, issue is how will you give it: Nirmala Sitharaman

The Hindu  

Responding to a question on freebies, Finance Minister Nirmala Sitharaman, who was participating in the 75th year celebrations of Panchjanya — an RSS-linked magazine, said that freebies are something that everyone is talking about these days and everyone traps others on the same subject. Attacking State governments, especially Aam Aadmi Party run Delhi government, that gives free power to residents …

Manish Tewari | Freebies and welfare: Time to define critical difference
1 year, 11 months ago

Manish Tewari | Freebies and welfare: Time to define critical difference

Deccan Chronicle  

While India is perennially on an election treadmill, with 10 state elections and a national election coming up in the next 18 months it is perhaps an apposite time to discuss the issue of freebies, i.e. Further, the RBI estimated that the cost of freebies announced in 2022-23 ranged between zero per cent to 2.7 per cent of the GSDP …

Freebies to allure voters, welfarism policy intervention: BJP in letter to EC
2 years, 1 month ago

Freebies to allure voters, welfarism policy intervention: BJP in letter to EC

Deccan Chronicle  

New Delhi: Making a distinction between freebies and welfarism, the BJP has suggested in a reply to the Election Commission that parties should place emphasis on voter empowerment and capacity building rather than increase the dependency of people, a party insider said. “The BJP has suggested that emphasis should be on empowering voters, increasing their capacity, imparting them skills to …

Affidavits will not fix freebies
2 years, 2 months ago

Affidavits will not fix freebies

Hindustan Times  

In what appears to be yet another effort to tackle the problem of freebies, the Election Commission of India has proposed – views of political parties have been sought on the issue – an amendment to the Model Code of Conduct for elections. The proposed amendment asks that political parties come clean on the fiscal costs of political promises made …

Poorly-directed freebies may have adverse consequences on economy: Experts
2 years, 3 months ago

Poorly-directed freebies may have adverse consequences on economy: Experts

Firstpost  

The Supreme Court recently said freebies at the cost of taxpayers’ money may push the country towards imminent bankruptcy New Delhi: Poorly-directed freebies may wreak havoc on state finances and have adverse consequences on the economy as in the case of Sri Lanka, experts say while noting it is important to define a freebie and how it is different from …

Freebies necessary for welfare of poor: KTR
2 years, 3 months ago

Freebies necessary for welfare of poor: KTR

Deccan Chronicle  

HYDERABAD: IT and industries minister K.T. Speaking on the occasion, the minister said freebies were needed to distribute among the poor and people under Below Poverty Line for their daily expenses and came down heavily on the BJP for its move to stop welfare schemes terming them freebies. “If we offer pension schemes for old age people and differently-abled, these …

Don\'t burden utilities, pay for freebies from budgets: FM
2 years, 3 months ago

Don\'t burden utilities, pay for freebies from budgets: FM

Deccan Chronicle  

MUMBAI: Union Finance Minister Nirmala Sitharaman on Friday said political parties that come to power on pre-poll promises of freebies should pay for those through budgetary provisions. Citing the example of free electricity being promised in many states, the finance minister said the burden for the freebies should not be thrust upon the power discoms or gencos. You should be, …

Freebies come at a price: economist
2 years, 4 months ago

Freebies come at a price: economist

The Hindu  

Freebies are never ‘free’ and when political parties offer such schemes, they must be required to make the financing and trade-offs clear to voters, RBI Monetary Policy Committee Member Ashima Goyal said on Sunday, adding this would reduce the temptation towards “competitive populism”. Noting that this hurts production and resource allocation and imposes large indirect costs, such as the water …

Freebies are never 'free'; subsidies that distort prices are harmful, says RBI MPC member Ashima Goyal
2 years, 4 months ago

Freebies are never 'free'; subsidies that distort prices are harmful, says RBI MPC member Ashima Goyal

Firstpost  

Prime Minister Narendra Modi has in recent days hit out at the competitive populism of extending ‘rewaris’ or freebies which are not just wastage of taxpayers’ money, but also an economic disaster that could hamper India’s drive to become Atmanirbhar New Delhi: Freebies are never ‘free’ and when political parties offer such schemes, they must be required to make the …

Time to dump the ‘revari’ culture: Aspirational India needs organic growth, and not freebies
2 years, 4 months ago

Time to dump the ‘revari’ culture: Aspirational India needs organic growth, and not freebies

Firstpost  

While some discretion should remain with political parties on determining handouts, let the expert panel suggested by the Supreme Court throw up viable suggestions and make this a part of electoral reforms New India after 75 years of Independence no longer wants to wait ad infinitum to attain better job opportunities and essential living amenities. Currently, ‘true debt’ of state …

Should there be limits on ‘freebies’
2 years, 4 months ago

Should there be limits on ‘freebies’

The Hindu  

While 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 …

Should there be limits on ‘freebies’? | The Hindu Parley podcast
2 years, 4 months ago

Should there be limits on ‘freebies’? | The Hindu Parley podcast

The Hindu  

While 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. The court noted that a legislation banning freebies is not advisable, but at the same time called for a balance between welfare measures and loss to the public exchequer. The Supreme …

Rewadi war: Here's all you need to know about election freebies
2 years, 4 months ago

Rewadi war: Here's all you need to know about election freebies

India Today  

The freebie culture has made it to the centrestage of Indian politics. Telangana Rashtra Samithi Member of Legislative Council Kalvakuntla Kavitha said on Tuesday said that welfare schemes for poor people are not ‘freebies,’ and waiving loans of “dupe agencies” are actual freebies. Congress- Madhya Pradesh Congress leader Jaya Thakur told the Supreme Court that freebies in elections, such as …

Voters prefer to earn a dignified earning over freebies: Supreme Court
2 years, 4 months ago

Voters prefer to earn a dignified earning over freebies: Supreme Court

The Hindu  

Voters, if given a chance, will prefer to earn a dignified earning through welfare schemes such as MNREGA and create public assets in rural India. The court was hearing a petition to curb the practice of offering or distributing “irrational freebies” at the cost of public money, especially in debt-ridden States during the run-up to elections. ‘Don’t confuse freebies with …

Our problem is fiscal mismanagement and not freebies
2 years, 4 months ago

Our problem is fiscal mismanagement and not freebies

Live Mint  

Recent weeks have seen increasing apprehensions raised by India’s political leadership as well as the judiciary on the increasing tendency of governments and political parties to promise ‘freebies’ to citizens. On 15 July, speaking at a function in Uttar Pradesh, Prime Minister Narendra Modi expressed concerns about the ‘revdi’ culture of political parties promising freebies to garner votes. The way …

Expenditure on education, health not freebies: MK Stalin
2 years, 4 months ago

Expenditure on education, health not freebies: MK Stalin

India Today  

Tamil Nadu Chief Minister MK Stalin on Saturday said the expenditure incurred by the government on education and health cannot be construed as freebies, joining in the debate over the freebies culture in electoral politics. The chief minister said freebies and social welfare schemes are two different things and added that he did not want to talk much about it …

Supreme Court not in favour of derecognising political parties over freebies
2 years, 4 months ago

Supreme Court not in favour of derecognising political parties over freebies

The Hindu  

The Supreme Court on August 11, 2022 refused to consider the question of derecognising political parties who resort to freebies. The apex court was considering the question of reining in the practice of political parties offering "irrational freebies" to the electorate if they are voted to power, especially in states which are already drowning in debt. Sheer loss to national …

‘Freebies will restrict India from turning self-reliant’
2 years, 4 months ago

‘Freebies will restrict India from turning self-reliant’

Live Mint  

Prime minister Narendra Modi has again hit out at opposition parties for offering freebies to voters, saying this would restrict India from becoming self-reliant and increase the burden on taxpayers. Speaking at the launch of Indian Oil’s second-generation ethanol plant at Panipat refinery on Wednesday, Modi said that such announcements are driven by vested interests and prevent investments in new …

TRS MLC K Kavitha hits out at Centre over 'freebies' remark
2 years, 4 months ago

TRS MLC K Kavitha hits out at Centre over 'freebies' remark

India Today  

Hitting out at the Centre over the ‘freebies’ remarks, Member of Legislative Council Kalvakuntla Kavitha of Telangana Rashtra Samithi on Tuesday said that welfare schemes for poor people are not ‘freebies’, however, the actual freebies are the loan waivers of ‘dupe agencies’. It is our responsibility as a state government to keep the best interests of the poor in mind,” …

Sop or welfare debate: The Hindu Editorial on freebies
2 years, 4 months ago

Sop or welfare debate: The Hindu Editorial on freebies

The Hindu  

A general concern over ‘freebies’ pushing the economy to ruin or unviable pre-election promises adversely affecting informed decision-making by voters seems reasonable. However, few will disagree that what constitutes ‘freebies’ and what are legitimate welfare measures to protect the vulnerable sections are essentially political questions for which a court of law may have no answer. The Chief Justice of India, …

Making sense of the ‘freebies’ issue
2 years, 4 months ago

Making sense of the ‘freebies’ issue

The Hindu  

August 03, 2022 12:16 am | Updated 12:12 pm IST Concern over ‘freebies’ in Indian politics has recently been expressed by those in the highest offices in the country. Speaking at the inaugural ceremony of the Bundelkhand Expressway on July 16, Prime Minister Narendra Modi warned youth not to get carried away by the ‘revari culture’, where votes are sought …

The problem of freebies and how we define them
2 years, 5 months ago

The problem of freebies and how we define them

Live Mint  

How free is a freebie? And so, Prime Minister Narendra Modi’s recent warning about election-driven fiscal populism is well taken, especially since states finances remain weak. The PM called it a culture of distributing free revri—a sesame-filled sweet that is often tossed into bonfires at north Indian harvest festivals. Scholars have called the Modi government’s redistribution agenda ‘new welfarism’, with …

Free education, healthcare not freebies, but efforts towards making India no. 1: Arvind Kejriwal
2 years, 5 months ago

Free education, healthcare not freebies, but efforts towards making India no. 1: Arvind Kejriwal

The Hindu  

Delhi Chief Minister Arvind Kejriwal Saturday said his government's schemes for free education, healthcare and electricity were not "freebies" but efforts to lay the foundation for making India the number one country in the world. His remarks came after Prime Minister Narendra Modi earlier in the day cautioned people against what he called was a "revadi culture" of offering freebies …

Freebie phobia: The BJP’s concerted attack on redistributive transfers
2 years, 7 months ago

Freebie phobia: The BJP’s concerted attack on redistributive transfers

The Hindu  

I T has all the trappings of a propaganda war. For example, Haryana Chief Minister Manohar Lal Khattar criticised the opposition for distributing freebies that made people “lazy” and declared that in principle the BJP was against such a “sit down policy”. ‘Sri Lanka–type economic crisis’ The freebies attack has also come from ostensibly independent, but government-linked, “expert” sources. Not …

Are freebies affecting the economic growth of India?
2 years, 7 months ago

Are freebies affecting the economic growth of India?

The Hindu  

In an address delivered at the Delhi School of Economics last week, N.K. He also noted that freebies could be harmful for the long-term economic growth of the country and emphasised the need to distinguish between productive and unproductive forms of welfare spending. Broadly speaking, in common parlance, fiscal stability is a situation in which the government is able to …

Why political freebies don't work
2 years, 10 months ago

Why political freebies don't work

India Today  

From 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 …

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