Politician: If you vote for me, the moment our party wins, we will transfer 5000 rupees in your bank accounts, along with free electricity and water.
Voter: Free of cost Wow! I would definitely vote for them.
Before elections, we keep listening to promises which have no authenticity from political parties. They do not even look into proper economic and financial values and promise the people free electricity, free water, transport facilities and farm loans for farmers. A tentative estimation says that India spends almost 7 to 10 lakh crore on freebies yearly by union and state governments. Which is equal to 20% of the national budget. Due to such initiatives, the government does not focus more on infrastructure or wealth building.
This freebie culture was never new to India, historically, it was only given as temporary support for people. As the democratic systems emerged, everything from welfare is turning into gaining votes. Most political parties provide and promise freebie policies for their self-benefit. This has become a habit since the 1960s and people would turn greedy for basic freebies and politicians would manipulate them.
We can see the same things happening due to freebies and other reasons in Sri Lanka, Venezuela, Cuba. When it comes to India, Punjab, Andhra Pradesh, West Bengal, Bihar have been in the prime states that are investing heavily in freebies.
How does it impact ?
*Freebies are never long term, and they are only for short-term use. When the financial dynamics are not mentioned or analyzed before providing freebies, then the next step would be the debt trap.
* Ability to spend on the right things would be reduced, and uneven expenditures would increase, including interest rates.
* Lethargy and lack of accountability in public would increase along with aspirations for more freebies. The mindset of dependency would bring more chaos to the nation.
* Reduced development, transformations and new innovations. It would also reduce the value of welfare schemes and policies.
* Rebellion from the society, conflicts and chances of protests if not provided.
* Economic crisis and overall GDP impact on the country.
The government has to strictly have proper economic and financial constraints over allocating freebies. There should be a law in which a limited portion of wealth can only be spent on freebies with having regulatory body to monitor it. The government's role is to provide resources indirectly through development and growth, not financial assistance. If the government is providing you free, they will take it back through taxes. Are you not aware of it ? Nothing comes free, it is all tax payers money which is being rotated just before elections. Freebies are good only when they are limited and genuine rather than random promises.
