The Trap of Freebie Politics in India, a Pricey Affair that Costs Heavy to the Citizens

The political discourse in India is standing under the false colors in the lexicon of socialism. In the struggle and pursuit of attaining power in this multi-party culture of India, the lentil’s rush to win over the voters has ingrained the culture of “freebies”. From free electricity to free smartphones, electoral triumph has found a different way to lure voters by offering intriguing promises.

However, the established limits have crossed the very boundaries of a fair electoral system. This iniquitous fashion is inconsiderably evolving to a sprint to imaginative ways that intrigue the citizens and the ‘audience’. This very culture of freebies triggers concerns about the potential impacts on the country’s political as well as economic health.

The political sphere of India is seeing a sprinting run between political parties to attract voters. While the parties tend to turn a blind eye to the situations which might arise beyond the elections. Attaining power or retaining it, is what they thrive for. The public and their pressing issues are shifted to the backseat.

The Economics Behind

The alarming development needs a comprehensive understanding of the economic standards which support such a culture. The field of economics talks of three core ideas, scarcity, choice, and opportunity cost. As the word suggests, scarcity is an outcome of a situation where the consumer appetite surpasses the supplies, pushing us to make difficult conclusions. Secondly, the factor of choice is largely used by the consumers as well as the manufacturers to transverse through the web of alternatives. Thirdly, the opportunity cost which involves a trade-off, which associates with every decision that costs compromising with a more beneficial choice.

For instance, picture an example wherein a small bake house set up an inviting offer to serve cheesecakes for free. The tempting offer may seem overwhelming to forego, however, we must not forget that for every perceived gain there is a potential opportunity cost that we pay. In this case, we might have saved spending money for a delicious dessert but the decision has kept us from trying out different dessert options.

Similarly, the electoral freebies promised by the various political parties may appear tempting enough to the voters akin to the lure of the free cheesecake. The unambiguous cost that the citizens bear may not seem to be an outright strain, but it comes with greater opportunity costs. The resources and the huge amount of money spent to fund these election campaigns could have been widely used in significant developmental efforts. The citizens who unknowingly and accidentally forego equitable and lasting growth of our nation, in its entirety get lured to the swift incentives, ending up paying an opportunity cost for their decision.

You must be wondering what hidden costs we pay as voters and as innocent citizens. The distinct issue that persists is the absence of these exorbitant promises and subsidies in the proposed budget. Talking about the enduring impact on the economy of our country, this culture of freebies transcends the atmosphere of optimism at the voting booths. Apparently, these electoral incentives and offerings before the elections stand far from free. It is for the voter base to be watchful enough to not let any attractive offers alter their genuine decision.

Pitfalls and the Stumbling Block

It is reported that a lot many political parties rely on the immoral and unacceptable use of the taxpayers’ money to influence the taxpayer itself. Does it not sound near to paying voters, a bribe? While such socialist experiments have been trending around the world from the socialist Venezuela offering free food and transport to the Cubans who survive on the freebies offered. But, for a country like India, it has questioned the ethical standards supported and accepted by our democracy.

Experts agree with the view that states must have the freedom to decide the amount of freebies that they can afford. But, surprisingly the political parties go beyond what they can actually afford. In simple terms, the expense spent on the freebies goes beyond their fiscal capabilities. Punjab, for instance, is one of the most indebted States in terms of revenue expenditure on subsidies which is nearly 13%. The ruling party in this financially weak state has still risked by promising free electricity for up to 300 units.

The famous saying, “There is no such thing as a free lunch”, much meaningfully emphasizes the understanding that economics does not allow the existence of any freebie. Everything has to be paid in some way or the other. It is not the rich but the poor who bear the cost of the so-called ‘subsidies’, for, there is a tax on everything from cradle to the coffin.

The political parties in India have never failed to come up with very creative means to attract voters. From free sarees in Tamil Nadu to free bus travel in Delhi, the governments reach an unsustainable proportion as the result of unrealistic promises. As a result, the freebie budgets surpass the state’s revenue leaving less to no room for developmental investments.

The state of Punjab is reported to be one of the largest spenders in terms of freebie budget. In light of this, it is reported that the total bill of the state was Rs. 10,068 crores and Rs. 15,600 crores as a financial burden for luring financial assistance of Rs. 1,000 a month for every woman above 18 years of age in the state.

Either it is the current public which is going to pay the cost of these free incentives or the future generations of taxpayers who will have to, unfortunately, pay back which certainly does not matter to the parties at the moment. The RBI has red-flagged states with a very high expenditure than their GDP. Rajasthan which a Gross State Domestic Product (GSDP) ratio is 40%, followed by Himachal Pradesh with 43% and Punjab with 53%. The vicious circle of political parties continues by blaming one party and another for the financial distress caused previously by the governments.

The top Court of the country has initiated measures to deal with the concerning problem of freebies by the political parties ahead of elections. Though, at a crawling pace, not much has been done to enforce instructions and guidelines for the act that hampers the fiscal health of our nation. The country must not forget that our foundations of democracy lie much above the attraction of freebies. The short-sighted vision of political parties is continually disregarding the country’s fiscal health. If the trend continues at an increasing pace, in no time the country and its citizens might have to pay for the not-so-free lunch.