Introduction
“The freebie culture is not a road to prosperity. It is a passport to fiscal disaster.”
– NK SINGH, chairman, 15th Finance Commission
As per the RBI’s 2022 report[1] “Freebies” are “public welfare measures provided free of Charge”. Freebies are short-term, populist measures without a long-term vision.
The collapse of the Sri Lankan economy has sparked a debate on the state’s role. The Sri Lankan government’s decision to implement widespread taxcutsand provide several free goods and services led the economy collapseand the country was left with no choice but to default on its commitments. Once offering free food to free transport, the Socialist Venezuela, an erstwhile rich economy, is now in complete shambles. Venezuelans stopped working, as most of their needs were offered for free by the Government, as the nation was oil rich. The Country turned towards importing most of its commodity requirements, and the economy finally collapsed around 2000. Cubans survive on the freebies offered by their government, and as a result, they have gone into deep stagnation
Freebie Culture, also known as Rewadi culture, has taken center stage in our country’s politics. It is a topic of heated debate in India’s Elections. Political parties often promise to give things like Free electricity, loan waivers, Cash transfers to their Bank accounts, Free use of Public Transport, Free Ration or consumer goods to attract voters, etc. While many leaders advocate for these as necessary welfare measures, others believe they strain state finances.
In the parallel context, the recent Delhi Assembly elections revealed a similar trend among the three major parties, i.e BJP, INC and AAP.All the parties deployed a suit of incentives commonly referredto as “freebies” to woo voters. The Aam Aadmi Party[2] promised a monthly allowance of a ₹2,100 for all women, an additional ₹21,000 for pregnant women, and subsidised LPG cylinders at ₹500 for those from impoverished backgrounds. Notably, BJP, which has previously criticised the freebies by referring it as Rewadi Culture and tounted opposition parties, engaged enthusiastically in electoral competition, It either matched or bettered Congress’ offers in these elections and followed suit by offering ₹2,500 per month to women[3] from impoverished backgrounds and ‘free electricity’ through its solar energy initiative. The Congress[4], too, joined the fray.
The provision of freebies has become a focal point of political strategy in India. Over the last few years,the promises of giving free electricity to cash transfer have become an integral part of the politics in India to remain in power.
The political discourse surrounding the provision of freebies has witnessed a notable shift, particularily in the recent high stake assembly elections in Jharkhand, Maharastra, Madhya Pradesh, Chhattisgarh, Rajasthan and Telangana saw the mainstreaming of freebies as political parties competed with each other in making a slew of promises in their manifestos—from free electricity and free bus travel for women to direct cash transfer to the bank accounts and subsidised gas cylinders.
According to former Chief Election Commissioner OP Rawat[5], any government provision lacking a clear justification can be categorised as a freebie. He cites examples such as the continuation of free ration for 80 crore Indians for an additional five years can be called a freebie. Are we saying that India has so many hungry people? Again, a free bus ride for every woman—rich or poor—is a freebie. A `500 gas cylinder for a family above the poverty line is also a freebie. Even Ladli Behna benefits for 1.32 crore women in Madhya Pradesh will come under the category of freebies,” says Rawat, adding that the Election Commission’s hands are tied as freebies are announced when the model code of conduct is not in force. Early last year, Prime Minister Narendra Modi decried the culture of “Revdi” (a popular sweet), as he referred to freebies that were being announced and offered by political parties. The Supreme Court of India is currently hearing a set of petitions challenging the pre-election promise of freebies, as well as government policies that dole out benefits as as means to capture vote banks.
[1]RBI Bulletin. (2022, June). State Finances: A Risk Analysis. https://www.rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=21070
[2] https://aamaadmiparty.org/
[3]https://www.bjp.org/files/election-manifesto-documents/Delhi-Manifesto_25-01-2025_English_0.pdf
[4]https://inc.in/delhi-manifesto
[5]https://m.economictimes.com/news/politics-and-nation/freebies-frenzy-indian-politics-grapples-with-electoral-promises-amid-economic-concerns/articleshow/106238055.cms