Freebies Hindering the Economic Growth of the Nation: A Study among the States and Union Territories of India

Abstract

Freebies or economic benefits offered by the ruling Governments for short term goals, before elections and during the span of their government’s regime has been a common phenomenon, across the nation. While offering schemes for economic benefits to a certain extent with a goal of social and economic inclusion, welfare of the common mass, overall substantial development is acceptable and reasonable for the states; the distribution of money for only politically influenced motives and desires through giving away ‘Freebies’, without assessing financial feasibility behind those schemes – becomes a burden on the state finances over the period. Since the money available to be invested in long-term developmental projects reduces to fund these schemes, growth of such states is hindered or slows down.

A disturbance in growth of a state, not only hinders the progress of its own, but also impacts the growth of the nation as a whole – as optimal contribution of every state combinedly, can push the nation forward and further. Today’s India aspires to grow more, to become a more developed nation in every field – equally intends to become self-reliant in most of the aspects. Which requires the Central as well as State and Union Territory Governments to have goals that stimulates overall and sustainable growth of the people, of the nation. A growth-seeking nation must prioritize having advanced infrastructure, a progressive economy, resilient industrial structure, quality education and standardized healthcare, etcetera; rather than distributing free benefits to the people for achieving electoral results.