- One of the most fascinating aspects of the election in India is how political parties announce their manifestos filled with promises, assurances, reassurances, dole-outs, freebies, and a roadmap to make our lives comfortable. One of the trending aspects being witnessed in the country over the last few years from the political class is the promises galore of freebies in the form of farm loan waivers, incentives, cash deposits, subsidies, and freebies vis-à-vis electricity, transport, and more welfare measures. Though ordinary citizens and women, in particular, may not complain too much about the freebies being offered, the concerned economists and finance experts must be wondering where this leaves the fiscal prudence as well as the health of the exchequer.
PC: The Economic Times
- As we are aware, India is still a largely agrarian country where agriculture continues to be relied upon by over 50% of our population. Though the manufacturing and services sector has picked up pace vis-à-vis growth prospects over the years, the still overwhelming reliance on the agriculture sector is too glaring. Despite concerted efforts by the successive governments at the Centre and the states, there is still a long way to go before people are weaned away from low-yielding agriculture into other equally critical economic sectors. No wonder, realizing this inalienable fact, political parties irrespective of party ideologies/philosophies always tend to woo the electorally crucial agrarian vote banks. Hence, the promises of dole-outs and freebies.
- Looking around several states would remind how governments soon after assuming power have announced the waving-off of farm loans to ostensibly lessen the burden of farmers. Undeniably, farmers are the backbone of the country whose sustenance denotes not only the health of the nation but also provides a feel-good factor vis-à-vis food security as well as robustness to the economy. Unfortunately, our political class has embraced some measures that go against the tenet of fiscal prudence by announcing free electricity, free ration, free travel, and more incentives in the form of cash deposits for the unemployed and housewives. The moot point to ponder over here is where the governments generate the requisite revenue to sustain these freebies.
PC: Tribune India
- As it is the revenue generation by the governments with so many socio-welfare schemes are innumerable. Rightly so. The downtrodden in society must be taken care of by the governments. However, the policymakers must also be sure of generating the requisite revenue to ensure the country keeps growing on every conceivable growth parameter in line with the fast-changing times. Rather than ensure people of the country have several options to participate in the GDP growth, the policymakers dangling carrots in the form of freebies simply defeats the very purpose of making us self-reliant. Creating more employment opportunities, a conducive business environment, and investment assistance should be prioritized by the political class.
