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Saturday, May 4, 2024

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Saturday, May 4, 2024

Freebies Lure

By Our Editor

Before general elections are held it is becoming normal practice in our country for political parties to announce concessions and free benefits to people if they manage to win and form government. These act as enticement to voters especially in rural areas where people are quite poor and ignorant. Even in some pockets of urban areas where people live in slum-like dwellings and squalor these are indeed very attractive. Naturally such kinds of inducement are very tempting and therefore many fall easy prey. It is true that certain political parties which have included these types of assurances in their manifestos had fulfilled them when they captured or retained power after election much to the satisfaction of public. Subsequently many parties are taking advantage and compete with each other in offering freebies. This has aroused some members of the public who strongly feel that it is interfering with normal procedure and hence jeopardise economy in future. Many of the states do not have stable economy and have to rely on Centre to meet even basic requirements. Even loans availed by states have not been yet fully repaid and again continue to borrow money from Centre and other sources without any regard for future.

Petitioner against freebies promises during polls, advocate Ashwini Upadhyay, has told the Supreme Court that country’s two highest economic bodies have expressed great concern on such practices which will have economic impact and thus affect sustainable economy. Senior advocate, Vijay Hansaria, on behalf of petitioner submitted that there should be proper study and understanding about fiscal and budgetary management before announcement of freebies otherwise such irresponsible actions will have adverse impact in future, and hence pleaded for Supreme Court (SC) intervention. Hansaria sought action against political parties for irrational freebies contending that as per Article 293(3) of Constitution the state government cannot raise any loan or borrow money as long as there is outstanding loan with Union government unless the Centre consents with certain impositions it may deem fit. Petitioner also urged SC for constituting committee of experts to carefully examine the matter and to consequently make suitable recommendations and publish ‘Economic Impact Assessment’ before any freebies are offered or distributed by the state government/political parties, etc.

Acknowledging that the poor really deserve some help SC while hearing Upadhyay’s PIL on August 3 also wanted to know impact of freebies on national economy. Top court had asked various stakeholders like the Government of India, NITI Aayog, Finance Commission and Reserve Bank of India to deeply ponder on the issues of freebies during polls and recommended setting up an expert panel to scrutinise issues linked with irrational freebies. SC also stressed between economy losing money and welfare measures. On August 11, SC has clearly spelled out difference between freebies and social welfare schemes stressing that economy losing the money and welfare of people have to be both balanced. There was also plea by petitioner that political parties making freebies promises before election to be derecognised which was however ruled out by SC.

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