Buzzing Freebies :- Challenge to the finance and elections

                      Image Courtesy :- Newslaundry

Feudalism was quite enough to differentiate between the proliterate and bourgeois but with gradually as industrialization happened and started spreading its foot deep into the ground it took a fresh Incarnation as Capitalism and that lead to the creation of wider gap in the graph of inequalities. Which started to hamper the mindset of the classes who were and are forced to live under the travestful condition like mices are living in the sewers of the Europe in the 18th century.

This widening gap attracted the attention of the governments to do something with an immediate effect to uplift the conditions of those whose daily wages are way below than the fixed standard by the World Bank viz. well needed to do efficiently well in HDI index., viz., Health , Education and Standard of Living. So govt started welfare schemes for impoverished en-masse what you better known as 'Freebies' these days as became the epicenter and bone of contention between various intellectuals whether this should be followed or should be curtailed down by immediate effect. 

After 1947, India wasn't that capable of allowing freebies or nor so welfare schemes at larger basis as just a GDP of ₹2.5 lakh crore and more than half of the population were poor enough ,with just 17% of literacy and 7-8% had reach to the health. So as Govt gradually started to pick the rail of growth process of various schemes too launched. But that wasn't sufficient for all the classes and many among them left at the same condition where they were started. As former Prime Minister Late Rajiv Gandhi aptly said, "Corruption has spreaded so vastly that if center gives ₹1 for a scheme, just 20 paise reaches to the place where it has to be reached". 

As political atmosphere erupted in a fresh form regional parties mushrooming around the country , who were not efficient to contest with the national parties, so wherever the regional parties came in the power they started to do something extra for the state not for the welfare of the people but for the sake and ground making for winning the elections and after 2015 hence we came to known a new phenomenon called Freebies, although after 2020 it took a new high as central government started the Pradhanmantri Garib Kalyan Anna Yojna , where govt during pandemic started giving free rations to the BPL families cause source of income stopped and forced them to live without any livelihood and as Food corporation of India has surplus grains at the store houses , so govt took an advantage of it and PDS shops turns out to be new grain mandis as grains are coming in lots of jute bags and everyone started praising the govt. So by this government not only helped them but also gained political advantage.

Welfare Schemes are not freebies:-

1) As such programs like Mid Day Meal (now PM Poshan) which ensures the proper nutrition for the children who could face malnutrition never sounds like freebies.              
2) Public Distribution System which ensures the supply of proper grains to almost 80 crore people to support the beloew poverty line families shouldn't be categorised as the freebies. 
3) Rythu Bandhu scheme of Telangana and Kalia scheme of Odisha to dole out the cashes before the starting of cultivation just as same at the central level PV Samman Nidhi to disburse ₹6000 in a year to every farmer doens't look like freebies.
4) Sarva Sikhsha Abhiyan , under article 21A which provides elementary education to the child between the age of 6-14 years can't be freebies.
5) Pradhanmantri Ayushman Bharat Yojna , which provides ₹5 lakh to every household for proper healthcare who can't bear the expenses of private hospitals ,which croses almost 10 crore Ayushman Card Holder what it takes it to call a freebies ?
As India lies in the category of lower middle class income where 40-45% people are living on just $1.90 every day and India's per capita GDP is just $2000 ,these dole outs are just true boon for them to have relief atleast for one side atleast.

Freebies are policy lacunae:-

Political Gain :- As politics seems like in no mood to learn from the Kautilya's Arthashastra which says "King needs to tax everything which are taxable, and must not tax on those which can't be taxable". These new generation freebies are nothing but just proved to be a new political manifestos to win the elections and making promises to reach in more states.

Fiscal Imbalance :- These freebies are an extra burden on the state's consolidated funds which seems quite tattered after the pandemic creating nothing but just a proper Imbalance between revenue receipts and revenue expenditure. State governments who are largely dependent on the central's grant under Article 275 spends relentlessly on such freebies which doesn't seems sustainable for a certain section. Which takes upcoming financial years in the clutch of deficit where a state government left with no option to be dependent on centre.

Inadequate stances :-  As parties mindlessly spends on these fragile election winning tricks , rational schemes are left behind which really can improve the condition in real sense. Like free electricity in Punjab by Aam Aadmi Party surely good for the farmers but this will certainly deplet the already went down water level as farmers will use more borwells to dig out the water. 

                       Image Courtesy :- Maps of India

Corporatisation  Of Freebies :- 

As many intellectuals advocates freebies must stop with an immediate effect seems realming around on one side of the story. As governments are giving it to those section who aren't able to return anywhere in the future in any form of exchequer ,we are too insufficient in observing the corporate houses. Even many of the corporate houses who runs the government by funding them regularly get benefits even in more amount than the person who are living below poverty line and that too in crores although indirectly but still. Like giving subsidies to the industries on consuming electricity, recently Government of India reduced the corporate tax from 30% to 18%. Not many of them pays 2% of their Corporate Social Responsibilities and likewise many among them does tax evasion through illegal ways without giving any hint to the govt as. Indian Government's Tax to GDP ratio is just 17% which is lower than USA who stands at 23% , China at 21%. 

Way Forward:-

1)  Government must understand a hairline difference between welfare schemes and freebies. Which in long run will prove to be a good understanding of the government.

2) Voters need to aware about the freebies that these are nothing but pole bound promises, which will fume away as the party comes in the power and will leave them where they are.

3) To boost cooperative federalism state government must not dole out inappropriately on freebies of the grants which they get from the centre. States shouldn't sideline the centrally sectored schemes and centrally sponsored schemes through the unwanted state schemes having the same target.

4) Judicial encroachment is the need of the hour in these case as recently Supreme Court stepped into these freebies debate by noticing the government to clarify the basis of these freebies.

5) Government need to focus on skilling ,resikilling and upskilling rather than make them addicted of freebies which will hamper their Development in long run. As recently in America Govt started to give $1000 as a support ,we got to see the mass resignation by the youths from the jobs and having benefit of it.

 





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