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Perspective: Freebies Culture & Economy | 03 August, 2022
- August 6, 2022
- Posted by: Maya
- Category: Editorial
In this episode of the Perspective Prog. Based on ‘Freebies Culture & Economy’. Supreme Court has said that there is a need for an apex body consisting of members from the Niti Aayog, Finance Commission, ruling and opposition parties, the RBI and other stakeholders, for suggestions on how to control freebies by political parties during campaigns. Hearing a plea against the practice of political parties promising freebies during elections, the apex court bench, headed by CJI N V Ramana, said this panel is required to determine the pros and cons of freebies as these have a significant impact on the economy. Prime Minister Narendra Modi has also raised his concerns about the practice of using freebies for votes at the cost of long-term development. Recently PM Modi had flagged this issue while pointing to mounting dues of power distribution companies as a looming crisis. According to a study based on the data of major financial assistance/ cash transfers, utility subsidies, loan or fee waivers and interest-free loans announced by the states in their latest budget speeches the expenditure on freebies range from 0.1 – 2.7 per cent of GSDP for different states.