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 chief N K Singh described Himachal Pradesh’s decision to bring back OPS as a recipe for ‘fiscal disaster’. In March this year, the TN Secretariat Association asked why the commitment to re-introduce OPS, fill 3.5 lakh vacancies in government and educational institutions and hike aid to deceased employees’ families had not been met. Rajasthan’s debt to Gross State Domestic Product ratio is 40 per cent, Himachal’s 43 per cent and Punjab’s a staggering 53 per cent.

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History of this topic

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 …

The Importance of Carefully Crafted Promises in Government Finance
1 month, 2 weeks ago

The Importance of Carefully Crafted Promises in Government Finance

Deccan Chronicle  

The Congress and the BJP are engaged in a war of words over the caution advised by Congress president Mallikarjun Kharge on announcing poll freebies. While both parties have a history of making outlandish promises, the Congress has a greater track record of fulfilling them. However, the BJP has also made some significant promises in the past, and some of …

Two years of AAP govt: Free power powers populism in Punjab
9 months, 1 week ago

Two years of AAP govt: Free power powers populism in Punjab

Hindustan Times  

Almost 90% of Punjab’s households got zero electricity bills last month. Of the 38 lakh consumers billed by the Punjab State Power Corporation Limited, 33.5 lakh got zero bill for electricity consumption. According to the state’s annual budget, a total power subsidy bill of ₹20,477crore crore has been proposed for 2024-25 as compared to the ₹17,457 crore in the last …

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 a policy intervention for inclusive growth: BJP in letter to EC
2 years, 1 month ago

Freebies to allure voters, welfarism a policy intervention for inclusive growth: BJP in letter to EC

Firstpost  

Making a distinction between freebies and welfarism, the BJP has suggested in a reply to the poll panel that parties should place emphasis on voter empowerment and capacity building rather than increase the dependency of people, a party insider said. New Delhi: Making a distinction between freebies and welfarism, the BJP has suggested in a reply to the Election Commission …

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 …

Do not insult the common man by calling facilities as freebies: Kejriwal
2 years, 2 months ago

Do not insult the common man by calling facilities as freebies: Kejriwal

The Hindu  

Delhi Chief Minister Arvind Kejriwal on Sunday took to twitter to ask why people, who are worried due to inflation, should not get access to free education, medicine and electricity, and said that by calling such things free, the common man should not be insulted. Mr. Kejriwal was commenting on a news clip in which Prime Minister Narendra Modi had …

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 …

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 …

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 …

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 …

Election freebies: An easy tool for parties to woo voters
2 years, 9 months ago

Election freebies: An easy tool for parties to woo voters

India TV News  

Highlights Freebies have taken a prominent place in India's electoral politics. EC had to issue notice to political parties over wooing voters with the promise of freebies Regional parties like Samajwadi Party also joined the freebies race this election Freebies have taken a prominent place in India's electoral politics. Such is a situation that the Supreme Court had to issue …

Kejriwal's freebies are not free, they are the problem, not solution
2 years, 10 months ago

Kejriwal's freebies are not free, they are the problem, not solution

Op India  

With the political atmosphere highly charged up ahead of the upcoming assembly elections in states, political parties are making a number of promises to secure a win at any cost. As per Kejriwal, the AAP government in Delhi is providing 200 units of free electricity to each family, while the concession in Punjab would be 300 units. The Aam Aadmi …

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