The Evolution and Impact of Freebies in Indian Politics: An Analysis of Populist Strategies and Economic Consequences

The distribution of freebies has become a defining feature of contemporary Indian politics, evolving from regional populism into a pan-India phenomenon. This practice involves political parties making promises of free goods, services, and financial assistance during electoral campaigns to attract voter support. The trend, which initially gained momentum in southern states like Andhra Pradesh and Tamil Nadu, has now spread across the country, influencing elections from state assemblies to the national level. Freebies encompass a wide range of items, including cash handouts, free electricity, household appliances like televisions and washing machines, loan waivers, and subsidized rations. The debate surrounding these offerings is multifaceted, touching upon ethical, political, and economic dimensions, and has drawn attention from institutions like the Supreme Court of India and economic analysts. The discourse often contrasts short-term electoral promises with the long-term sustainability of public finances and the potential impact on citizen empowerment.

The Rise and Spread of Freebies Culture in India

The politics of freebies in India has evolved into an intense competition among political parties, transcending regional boundaries and becoming a pan-India phenomenon. While the trend initially gained momentum in the southern states of Andhra Pradesh and Tamil Nadu, where successive governments indulged in populist schemes, today, no state remains an exception. From Maharashtra’s 2024 Assembly elections to the upcoming 2025 Delhi polls and even the 2024 general elections, political parties across the spectrum have engaged in extravagant promises, often at the cost of long-term economic sustainability.

In Maharashtra’s 2024 elections, various parties pledged free ration schemes, loan waivers, subsidized gas cylinders, and even direct cash transfers, setting a precedent for competitive populism. This practice has become a key electoral strategy, with freebies ranging from cash handouts and free electricity to household appliances and unemployment allowances. The distribution of freebies often leads to unintended economic consequences, as it places a significant burden on state finances.

Understanding Freebies: Definition and Distinction from Welfare

There is no precise definition of freebies, but the Reserve Bank of India defines them as "a public welfare measure that are provided free of charge." These are in the form of promises made by political parties during elections and have now become an integral part of politics in India. Freebies are short-term handouts aimed at voter appeal, often lacking sustainable impact, unlike welfare policies that promote lasting economic and social well-being.

The distinction between welfarism and freebies is critical. Welfare measures are a means to support and empower citizens or groups and are needed in a backward and unequal society. Even developed countries offer welfare measures to citizens, but most of them have an institutional basis and come with conditions. However, the preponderance of freebies, as seen now in India, would disempower the beneficiary and make her dependent on them. The Supreme Court’s observation that a “class of parasites” has been created by freebies points to a situation where people lose the incentive to work because of the freebies they get. A bench of B R Gavai and Augustine Masih said that freebies announced by political parties were a reason for people’s reluctance to do hard work, as free rations and some money are available.

Popular Freebie Announcements in Electoral Campaigns

The most popular freebie announcements in Indian electoral campaigns, to mention a few, have been: free electricity and free water (with an upper limit) in Delhi by the AAP; free sarees, pressure cookers, television sets, and washing machines in Tamil Nadu by the AIADMK; and free oil, ghee and ration in Uttar Pradesh by the SP. Not restricted to material objects – waived-off loans, direct cash transfers, and rations can also count as freebies for campaigning purposes. For example, the PM KISAN Yojana, aims to provide minimum income support of up to Rs. 6,000 to farmers across the country, irrespective of the size of their land holdings, and can be considered a freebie.

Ethical, Political, and Economic Concerns

What makes the ‘freebie culture’ debatable? Predictably, there are ethical, political, and economic concerns regarding the promises and distribution of freebies. Electoral promises of freebies tend to sway voters in an unfair manner and may reduce the democratic nature of the election. Freebies are comparable to political parties bribing voters with future rewards to be given out from public funds. From a moral standpoint, it raises questions about the integrity of the democratic process, as it seems to imply that voters can be swayed by material incentives.

From an economic perspective, the sustainability of such practices is questionable, as it places a significant burden on state finances. A case in point is the economic crisis in Sri Lanka, which was precipitated by the excessive distribution of freebies. The distribution of freebies often leads to unintended economic consequences. The Supreme Court’s observation that a “class of parasites” has been created by freebies should be seen in this light. The court used a strong word but it points to a situation where people lose the incentive to work because of the freebies they get.

A recent survey conducted across multiple cities in India reveals mixed attitudes among urban Indians toward freebies, especially in the context of rising debates on fiscal responsibility. Over half (56%) of respondents viewed freebies as unnecessary, with 78% labelling them as vote-seeking tactics and 61% expressing concern about their impact on national finances. Wealthier respondents (84%) largely see freebies as economically harmful, while only 46% of lower-income respondents share this view.

Constitutional and Legal Perspectives

The constitutional and legal framework provides context for the debate. Directive Principles of State Policy (DPSP) under Articles 38, 39, and 41 emphasize the role of the state to secure a social order for the promotion of welfare of the people, ensure men and women have adequate means of livelihood, prevent concentration of wealth, and provide the right to work, education, and public assistance in certain cases. However, the implementation of these principles through freebies remains contentious.

A notable Supreme Court judgment is the Subramaniyam Balaji Case (2013), where a two-judge bench held that "state distributing largesse in the form of distribution of colour TVs, laptops, etc." This case is often cited in discussions about the legality and appropriateness of freebie distribution. In an intriguing turn of events, the Supreme Court of India, on 26th August 2022, decided to delegate the task of assessing the legitimacy of freebies distributed by political parties during election periods to a three-member bench. This decision has sparked a renewed debate on the implications of such practices.

Recent Developments and Legislative Action

Recently, the Supreme Court questioned whether freebies are fostering a parasitic lifestyle among the poor and discouraging them of the will to find work. This judicial scrutiny aligns with growing concerns about the long-term impact of freebies on individual motivation and national productivity. The debate on freebies in Indian politics is not new, but it is now that they have taken high priority in government policies and political strategies. Subsidies, giveaways, free public goods such as electricity and water, and loan waivers were always part of the agenda – many of them had a social purpose and a welfare underpinning. But too many freebies could prove counterproductive for both the beneficiary and the benefactor.

In recent legislative developments, the Rajya Sabha passed the Disaster Management (Amendment) Bill, 2024 by a voice vote. While this bill is not directly about freebies, it reflects the broader context of government legislation and policy-making in India. The background for this bill mentions that in recent years, the practice of offering freebies, free electricity, cash transfers, consumer goods, or subsidies, has become common in Indian politics, and political parties often announce such schemes before elections to attract voters.

The Broader Debate and Future Implications

The freebies competition in Indian politics has evolved into an intense competition among political parties, transcending regional boundaries and becoming a pan-India phenomenon. This trend raises fundamental questions about the nature of democracy, fiscal responsibility, and citizen empowerment. While welfare measures are essential in a society with significant inequality, the line between welfare and freebies is often blurred in electoral politics.

The Prime Minister’s criticism of "revdi culture" in 2022 intensified discussions on the sustainability and ethical implications of election-driven freebies. This term, "revdi culture," has become a shorthand for the populist practice of distributing freebies to gain electoral advantage. The debate is not merely academic; it has real-world implications for governance, public finance, and the social fabric of the country.

As India continues to grapple with these issues, the need for a balanced approach becomes increasingly apparent. This approach would need to reconcile the legitimate aspirations of citizens for a better quality of life with the imperative of sustainable economic growth and responsible governance. The Supreme Court’s intervention, the public opinion reflected in surveys, and the ongoing political discourse all point to a society in the midst of a profound debate about its future direction.

Conclusion

The phenomenon of freebies in Indian politics represents a complex interplay of electoral strategy, economic policy, and social welfare. While it has deep roots in the country's political history, its current scale and intensity have brought it to the forefront of national debate. The practice raises critical questions about democratic integrity, fiscal sustainability, and the long-term development of the nation. As political parties continue to use freebies as a key tool for voter mobilization, and as institutions like the Supreme Court scrutinize their impact, the discourse around this issue is likely to remain a central feature of Indian politics in the coming years. The challenge for policymakers and society at large will be to find a way to address genuine public needs without compromising the principles of economic prudence and individual empowerment.

Sources

  1. The Freebies Competition In Indian Politics: A Deepening Crisis
  2. Freebies Culture in India
  3. Freebie culture disempowers citizens
  4. Freebies in India
  5. Freebies in Indian Politics
  6. Freebies in Indian Politics: The Growing Debate
  7. Freebies in Indian Politics: The Growing Debate

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