SME Times is powered by   
Search News
Just in:   • Biden administration forgives $4.7 billion loans to Ukraine  • Women entrepreneurs driving innovation, growth in gem & jewellery sector: Smriti Irani  • India’s export outlook brighter as manufactured goods gain share: RBI  • India’s consumer durable makers to log 11-12 pc growth in FY25  • SEBI’s proposal on SME IPOs: striking a delicate balance 
Last updated: 23 Aug, 2022  

India.Growth.9.Thmb.jpg Freebies debate

India.Growth.9.jpg
   Top Stories
» India’s export outlook brighter as manufactured goods gain share: RBI
» Private consumption driving growth in Q3 with rural India taking lead: RBI
» Indian MSMEs create about 10 crore jobs in 15 months
» Indian prefer Q-commerce for daily essentials, physical stores for high-value buying
» Embedded finance to unlock $25 bn revenue opportunity for India’s platforms by 2030
Bikky Khosla | 23 Aug, 2022

Early this month, the Supreme Court of India recommended to constitute an expert committee to brainstorm on the issue of election ‘freebies’. The committee will comprise representatives of Union and State governments, RBI, Finance Commission, and NITI Aayog, etc. The court noted that a legislation banning freebies is not advisable, but there should a balance between welfare measures and loss to the public exchequer.

The issue has come to the fore recently with a PIL seeking action against political parties for promising or distributing irrational doles during election campaigns. While the Modi government came out in support of the PIL, AAP has moved the SC opposing it, adding that free-water, electricity and transport are essential provisions in an unequal society. The Chief Economic Adviser to the West Bengal government even alleged that the NDA government is the biggest giver of freebies for political leverage.

The term ‘freebies’ usually refers to something doled out to the population that does not support production and productivity in medium to long term. Not all such policy interventions – like free electricity or farm loan waiver – can directly be termed as freebies, considering rising inequality in our country, but some other kinds of expenditure – like on distributing laptops, smartphones, cycles, TV sets and so on – are, no doubt, done with elections in mind and therefore should be restricted.

According to a recent RBI report titled ‘State Finances: A Risk Analysis’, from 2014 onwards –despite more resources given – allocation by Indian states to social sectors and health and education has been declining. Also, overall, India’s welfare spending is very low. On the other hand, the report adds, “expenditure on freebies range from 0.1 - 2.7 percent of GSDP for different states”. This trend needs to stop..

I invite your opinions.
 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
84.35
82.60
UK Pound
106.35
102.90
Euro
92.50
89.35
Japanese Yen 55.05 53.40
As on 12 Oct, 2024
  Daily Poll
Will the new MSME credit assessment model simplify financing?
 Yes
 No
 Can't say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter