Syllabus: GS2/Polity and Governance
Context
- The SC has distinguished welfare schemes from freebies, stating that large-scale distribution of state money to individuals is different from investing in public welfare.
About
- A batch of petitions seek a judicial declaration that irrational freebies offered by political parties to lure voters during poll time should be considered a “corrupt practice”.
- SC Observations: Welfare schemes like free healthcare and education are a constitutional obligation under the Directive Principles of State Policy.
- The Court expressed concern that unregulated freebies strain State finances, increase public debt, and reduce funds for long-term development.
- The Bench warned that excessive freebies may encourage dependency, discouraging work and participation in economic growth.
What are Freebies?
- Freebies are non-merit, consumption-based benefits that do not create long-term public assets and are usually meant for immediate relief or electoral appeal.
- Often the practice is used by political parties offering free goods, services, or subsidies to the public, particularly during election campaigns, in an attempt to garner votes.
- The word “revdi” is used metaphorically to describe the free handouts, as it evokes the image of distributing free gifts.
- Section 123 of the RP Act deals with ‘corrupt practices’, it says that it is deemed a corrupt practice if any gift, offer or promise of gratification is made to voters directly or indirectly by a candidate or his agent or any other person acting on their consent.
Arguments in Favour of Freebies:
- Social Welfare: Freebies can provide immediate relief to economically disadvantaged sections, helping reduce poverty and inequality.
- Empowerment: They can empower marginalized groups, especially women, students, and low-income families, by providing opportunities they might otherwise not afford, like free education or cash transfers.
- Boost to Consumption: Offering free goods or services, like free electricity or gas, can increase disposable income, allowing people to spend more on other necessities, thereby stimulating the economy.
- Incentive for Governance: Freebies can also act as a measure of how well a government is meeting the basic needs of its citizens, acting as a direct reflection of governance efficiency.
Arguments Against Freebies
- Financial Burden: The cost of providing freebies can strain government finances, diverting resources from long-term development projects like infrastructure, healthcare, and education.
- Dependency: Freebies may create a dependency on the state, discouraging self-reliance and a culture of entitlement, instead of encouraging people to seek sustainable opportunities.
- Inefficiency: Freebies often do not address the root causes of poverty or economic inequality, focusing on short-term solutions rather than creating lasting opportunities for growth and employment.
- Populist Politics: The distribution of freebies can be seen as a way for political parties to manipulate voter sentiment and secure votes, undermining the integrity of elections and democratic processes.
- Unsustainable: The long-term sustainability of freebies is questionable, as governments may struggle to maintain such schemes without affecting fiscal health or leading to increased taxes for the general population.
Important SC Judgements Related to Freebies:
- S. Subramaniam Balaji vs. State of Tamil Nadu (2013): The Supreme Court upheld the right of political parties to offer freebies but emphasized that the distribution of freebies should be done responsibly.
- It stated that only an individual candidate, not his party, can commit a ‘corrupt practice’ under the RP Act by promising free gifts.
- Public Interest Litigation (PIL) on Freebies (2022): : In this case, the Supreme Court refrained from passing any immediate judgment but asked the Election Commission of India to look into the matter and come up with recommendations.
- The court also raised concerns about the long-term sustainability of such promises and their impact on governance.
Way Ahead
- Regulation: The government could introduce clear guidelines to regulate the distribution of freebies, ensuring they are targeted and aligned with long-term welfare goals rather than just electoral promises.
- Electoral Reform: The Election Commission could enforce stricter rules on the distribution of freebies during election periods, limiting excessive promises and ensuring they do not affect the fairness of elections.
- Fiscal Responsibility: States and the central government need to adopt more fiscally responsible policies to ensure that any welfare schemes are financially sustainable and do not lead to a debt burden.
- Public Awareness: Educating the public about the implications of freebies and encouraging a demand for policies that provide long-term solutions, such as infrastructure development and job creation, could shift the focus toward growth-oriented governance.
Source: TH
