Freebies Culture in India: A Growing Concern

The Supreme Court of India has recently raised concerns over the growing trend of political parties offering freebies to voters before elections.

• The court questioned whether such policies are creating a “class of parasites” and discouraging people from working.

Understanding Freebie or Revedi Culture

• A ‘freebie’ refers to an item or service that is offered without any cost to the recipient. 
• The Reserve Bank of India (RBI) has defined freebies as public welfare measures provided free of charge, including free electricity, water, public transportation, farm loan waivers, and subsidies.

Difference Between Freebies and Welfare Schemes

Issues Highlighted by the Supreme Court

• Encouraging Unemployment: Free ration and direct cash transfers discourage people from seeking employment, reducing the labor force.
• Misallocation of Resources: States prioritize freebies over essential services like salaries for judicial officers and public infrastructure.
• Fiscal Burden: In states like Punjab, excessive subsidies (16% of total revenue) are pushing economies towards bankruptcy.
• Political Exploitation: The court cautioned against using election-time incentives as a means to sway voters, terming it a violation of free and fair electoral processes.

Past Supreme Court Observations on Freebies

• 2013 Subramaniam Balaji Case: The top Court ruled that such matters fell within the domain of legislative policy and were beyond judicial scrutiny.
  • It further underscored that such expenditures could neither be deemed unlawful nor characterised as a “corrupt practice,” particularly since they sought to advance the Directive Principles of State Policy.
• 2021 Expert Panel Proposal: The SC proposed an expert panel including NITI Aayog, RBI, and political representatives to examine the issue, but no concrete action followed.
• 2022 Election Freebies Review: The SC flagged concerns over political parties announcing unsustainable schemes without clarity on funding sources.

Advocacy for Freebies

Despite criticism, some argue that freebies serve crucial social functions:

• Poverty Alleviation and Social Protection: Free food distribution during the pandemic benefited 800 million people, ensuring basic sustenance.
  • Welfare initiatives like free housing, toilets, and healthcare help the underprivileged escape extreme deprivation.
• Improving Infrastructure and Living Standards: Free electricity, water, and sanitation have enhanced quality of life, as evident in multi-dimensional poverty index reports.
  • Schemes like free electricity for farmers in Punjab address long-standing socio-economic inequalities.
• Boosting Human Development: Free education, mid-day meals, and healthcare services enhance literacy, nutrition, and well-being, contributing to long-term economic progress.
  • Improved access to basic facilities ensures healthier, more productive citizens.
• Economic Stimulus and Workforce Participation: Free or subsidized public transport for women increases workforce participation and financial independence.
  • Welfare schemes enhance consumer spending, indirectly stimulating economic growth.
• Social Equity and Political Stability: Freebies reduce income disparities, preventing social unrest and ensuring stability.
  • Political parties defend these initiatives as essential for public welfare and democratic engagement.
• In Line with DPSP: Article 41 of the Constitution of India states that the State, “within its economic capacity and development” can make effective provision for securing “public assistance” in certain special cases.
  • SC in the Subramaniam Balaji Case ruled that the distribution of laptops and TVs by Tamil Nadu’s DMK government was in line with Directive Principles of State Policy.
• Provide Immediate Relief in Crisis: They can be an effective tool to help during emergencies like pandemic, natural disaster, Riots or war situations.
  • For Example, free vaccination during COVID -19 pandemic helped in overcoming the unprecedented challenge.
• Encouraging Sustainable Development & Self-Sufficiency: Targeted subsidies for renewable energy adoption promote environmental sustainability.
  • Freebies provide short-term relief, allowing beneficiaries to invest in education and employment, fostering long-term self-reliance.

Recent Examples of Freebies in India

• Delhi’s Free Electricity Scheme: The AAP government’s policy of providing free power up to 200 units has led to financial stress on DISCOMs.
  • The Policy is promised to be continued by the newly elected party.
• Maharashtra election Freebie Frenzy: A fierce battle of freebies  was seen between the parties  during the Maharashtra assembly poll
• Punjab’s Free Electricity to Farmers: Contributing to groundwater depletion and financial mismanagement.
• Karnataka’s ‘Gruha Lakshmi’ Scheme: Providing ₹2,000 per month to women heads of families, increasing fiscal deficit.
• Tamil Nadu’s Free Laptop Distribution: While aimed at digital literacy, many beneficiaries sold their laptops for cash, defeating the purpose.
• Rajasthan’s Free Mobile Scheme: The government’s ₹1,200 crore initiative for women has raised concerns about sustainability.

Impact of Freebie Culture

• Fiscal Strain: States like Punjab, Jharkhand, and Rajasthan are experiencing financial distress due to increasing welfare expenditures.
  • NITI Aayog’s ‘Fiscal Health Index (FHI) 2025‘ had ranked Punjab last among the 18 major states due to rising outside debt.
• Dependency Mindset: Long-term freebie schemes discourage individuals from seeking productive employment.
  • States like Maharashtra is  struggling  with labor shortages due to widespread entitlement programs
• Cascading Effect: Recently the Rajasthan Government announced 150 Units of free electricity during the state budget for fiscal year 2025-26 presentation following footsteps of  states like Delhi.
• Distorted Economic Priorities: Government spending shifts from essential infrastructure to short-term political gains.
  • Karnataka spent thousands of crores on fulfilling election promises, causing budget shortages for infrastructure projects.
• Environmental Consequences: Overuse of groundwater due to free electricity schemes in states like Punjab and Haryana.

Way Forward

• Legislative and Policy Reforms: Amending the Representation of the People Act (RPA) to regulate election promises. Enforcing stricter guidelines on financial disclosures regarding how parties will fund their schemes.
• Fiscal Responsibility Measures: Setting limits on freebie expenditures, capping them at 1% of GSDP or 1% of state tax revenues. Ensuring that revenue deficits, as determined by the Finance Commission, are not exceeded due to freebies.
• Strengthening the Election Commission of India (ECI): Empowering the ECI to regulate manifestos and scrutinize unrealistic promises.
  • Introducing a Model Manifesto to ensure transparency in campaign pledges.
• Public Awareness and Accountability: Encouraging voters to question the financial feasibility of freebies. Ensuring governments prioritize long-term development over short-term gains.
• Distinguishing Subsidies from Freebies: Subsidies are intended to address developmental gaps in specific sectors or regions where progress has been insufficient.
  • For Example Subsidies for renewable energy, like solar panel incentives, are strategic investments fostering sustainable development rather than mere handout.
• Better Allocation for Welfare Schemes: Focusing on Human capital will reduce the impact of freebies on people’s choice.

Conclusion

The culture of political freebies in India is a growing challenge that threatens fiscal stability and labor incentives. While welfare measures are necessary for inclusive growth, indiscriminate distribution of non-merit goods can lead to economic mismanagement. A balance must be struck between social security and responsible governance through legal amendments, financial discipline, and voter awareness. Addressing the freebie culture requires a multi-stakeholder approach, ensuring long-term national interest is prioritized over short-term electoral gains.