Freebies, defined as goods and services provided at no cost to the beneficiary, have become a prominent tool in political strategy, particularly in electoral contexts. In political discourse, these offerings often manifest as tangible promises intended to secure voter support. Examples range from essential commodities like food and clothing to more substantial offerings such as electronic appliances, farm loan waivers, and subsidized housing. While the immediate intent is often to alleviate the economic burden on disadvantaged sections of society, the practice raises complex questions regarding economic sustainability and governance.
Historically, the use of freebies as a political instrument has deep roots. In the context of countries like India, where significant portions of the population face poverty and unemployment, political parties have utilized freebies to demonstrate a commitment to addressing socio-economic disparities. A notable historical example cited in the literature is the ₹1 rice scheme introduced by C.N. Annadurai in Tamil Nadu in 1967. This initiative highlighted the political allure of such offerings and set a precedent for future electoral campaigns. Over time, the scope of these promises has expanded, with parties frequently pledging free electricity, water supply, free medicines, insurance, monthly allowances for the unemployed, laptops, and free network services. During the last few years, the practice has evolved into a standard agenda for forming governments, with promises of free food grains, hospital treatment, and electricity becoming commonplace.
Proponents of freebies argue that they serve as a necessary mechanism for social upliftment. In a country with varying levels of development, electoral expectations often arise from necessity. In states with lower development indices and larger populations living in poverty, subsidies and free goods are viewed as crucial for improving the quality of life. For instance, the Public Distribution System (PDS), which involves the free or subsidized distribution of wheat, sugar, and rice, is cited as a measure that contributes to individual growth. Similarly, schemes like MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) and free COVID-19 testing during the pandemic are viewed by some as expenses that lead to economic growth. The argument is that such practices improve the productivity of people and build a healthier, stronger workforce, which in turn helps achieve national goals. Furthermore, some advocates suggest that these promises are essential for informing voters about a party’s agenda, allowing them to evaluate alternatives. Additionally, the competitive nature of electoral politics means that providing freebies has become a standard practice adopted by nearly every political party to secure votes.
However, critics contend that the provision of freebies promotes a culture of dependency, hinders economic growth, and undermines the principles of good governance and fiscal responsibility. The distinction between freebies and welfare schemes can sometimes be blurred, but a broad differentiating factor lies in their long-term effects. While welfare measures such as healthcare and education entail expenditure, they offer broader, long-lasting benefits. In contrast, freebies are often characterized as unconditional, non-targeted giveaways used primarily for electoral mileage. The Reserve Bank of India (RBI), in a 2022 report, described freebies as "public welfare measures that are provided at no cost," distinguishing them from merit goods that offer long-term benefits.
The economic implications of freebie politics are a major source of concern. The provision of extensive subsidies, such as free electricity, poses a threat to a state's fiscal stability and comes with significant opportunity costs. These costs limit the availability of funds for crucial social programs in other areas. For example, a report indicated that Karnataka’s budget allocations for education and healthcare fell below the average allocations in these sectors compared to other states, suggesting that funds directed toward freebies may be diverted from essential developmental sectors. The fiscal deficit of the nation is increasing at an alarming rate, and providing freebies is seen as a potential trigger for the breakdown and collapse of the economy. The CRISIL report highlights that many states are already in debt and financially deficit. This financial strain makes states unable to spend on capital expenditure, such as building roads, public infrastructure, and hospitals, which are vital for long-term economic growth.
The case of Sri Lanka serves as a cautionary example. The Sri Lankan government cut taxes and provided free goods and services without properly assessing the economic status of the nation, which ultimately resulted in a collapse of the economy. In the long term, such practices lead to a financial burden on the nation, resulting in indebtedness. The RBI has specifically warned that states like Punjab, Rajasthan, West Bengal, Bihar, and Kerala are at high fiscal risk due to these promises, with Punjab facing the highest risk. The burden of these freebies falls directly or indirectly on the public, as the funds are sourced from taxpayers. Consequently, the practice can lead to a breakdown of welfare governance rather than its enhancement.
Beyond economics, freebie politics presents ethical and constitutional challenges. The practice is often criticized for hiding the underperformance of political parties. When parties fail to fulfill their promises or perform effectively, they resort to offering free cylinders, free food, and other incentives to prevent voters from switching allegiance. This creates a scenario where governance is reduced to transactional exchanges rather than policy-driven development. Moreover, the growth of corruption is a significant issue associated with freebies. Leakage of goods and funds during distribution means that the actual benefits often fail to reach the intended masses, further eroding trust in the system.
From a constitutional perspective, while the Directive Principles of State Policy in the Indian Constitution guide the state toward securing welfare for its citizens, the indiscriminate use of freebies raises questions about fiscal prudence and the sustainable development of the nation. The trend reflects a shift away from targeted, merit-based welfare schemes toward populist measures that may not align with the long-term interests of the state or the nation. The environmental impact is also a consideration; human tendency dictates that services or items provided for free are often used in excess, leading to wastage and adverse effects on environmental and sustainable growth.
In conclusion, while freebies may yield political results in the short term by appealing to the immediate needs of the electorate, they lead to a great social and economic price in the long term. The practice places a substantial strain on state and central exchequers, diverts funds from capital expenditure and merit goods like education and healthcare, and fosters a culture of dependency and corruption. The distinction between genuine welfare measures aimed at sustainable development and freebies used for electoral gain is critical. Policies need to prioritize sustainable development and fiscal prudence over short-term political gains to ensure the economic stability and long-term growth of the nation.
Sources
- Politics of Freebies - PW Only IAS
- Freebies in Indian Politics - JETIR
- Political Freebies: Importance, Limitations, Issue and Challenges - Reflections
- The Politics of Freebies: A Comprehensive Examination - Triumph IAS
- Unpacking Freebie Politics - Triumph IAS
- Freebies and Welfare Governance - BPSC Concept Wallah