Why in News: Bihar is witnessing a wave of welfare announcements in the lead-up to Assembly elections.
Context:
- These are typical of election-eve populism, where welfare is used as a tool to manage public sentiment rather than genuine public service delivery.
- Despite repeated criticisms by PM Narendra Modi against “freebie culture,” such arbitrary welfare schemes persist.
Key Welfare Announcements in Bihar: Free electricity, Free rooftop solar installations, 35% reservation for women in all state government jobs, etc.
Definition of Freebies: While there is no formal legal definition, the Reserve Bank of India defines them as “public welfare measures provided free of charge.
Constitutional and Legal Perspectives on Freebies
1. Directive Principles of State Policy (DPSP): Articles 38, 39, 41 mandate the State to-
- Promote social welfare and equitable social order
- Ensure adequate livelihood for men and women
- Prevent concentration of wealth
- Guarantee right to work, education, and public assistance
2. Supreme Court Judgements
- Subramaniyam Balaji Case (2013): The Court ruled that state distribution of goods (e.g., TVs, laptops) to deserving people aligns with DPSPs and is not subject to judicial interference.
3. Election Commission (EC) Stance
- Advocates for transparency in electoral promises.
- Urges political parties to disclose funding sources for freebies to ensure accountability.
Arguments in Favor of Freebies
1. Immediate Social Welfare & Poverty Relief
- Freebies like free power, gas, or cash transfers offer instant alleviation for the economically vulnerable, improving basic living standards .
2. Empowerment of Marginalized Groups
- Targeted schemes (e.g., for women, students, low-income families) enhance access to education, health, and employment, promoting inclusive development .
3. Stimulus via Boosted Consumption
- Free utilities or cash increase disposable income, which fuels consumption, generates demand, and supports economic growth .
4. Responsive and Accountable Governance
- Delivering freebies signals government responsiveness, directly addressing citizen needs and aligning with DPSP goals for public welfare .
Arguments Against Freebies
1. Fiscal Stress
- Freebies often strain public finances. They divert critical funds away from essential sectors like health, education, and infrastructure, leading to long-term economic inefficiencies.
2. Promotes Dependency
- Regular free provisions can erode work ethic and promote a culture of entitlement, making beneficiaries reliant on state support rather than pursuing self-reliance.
3. Short-term Relief, No Structural Reform
- While freebies may offer temporary respite, they do not tackle the structural roots of poverty, unemployment, or inequality, thus failing to generate sustainable progress.
4. Populism over Policy
- Freebies are frequently used as populist tools to gain electoral advantage, weakening democratic accountability and shifting focus from performance-based governance.
5. Unsustainable in the Long Run
- Continued reliance on such expenditures without revenue backing can threaten macroeconomic stability, raise deficits, and even trigger inflation or increased taxation.
6. Resource Misallocation
- Freebies often reach a broad base, including those not in dire need, instead of being targeted for welfare. This dilutes the impact of government spending and lowers efficiency.
Way Ahead
1. Regulation:
- Frame clear guidelines to ensure freebies are targeted, need-based, and aligned with long-term welfare goals.
2. Electoral Reform:
- The Election Commission must curb excessive freebie promises and ensure transparency through cost disclosures.
3. Fiscal Discipline:
- Adhere to FRBM norms; prioritize sustainable, growth-oriented spending over populist measures.
4. Public Awareness:
- Educate citizens on the long-term fiscal burden of freebies; promote demand for job creation and infrastructure.