Recently, Supreme Court questioned whether freebies are fostering a parasitic lifestyle among the poor and discouraging them of the will to find work.

What is meant by Freebies?

Definition: Although, there is no precise definition of freebies Reserve Bank of India defines it as "A public welfare measure that is provided free of charge". These are in the form of promises made by political parties during elections and have now become an integral part of politics in India.

Welfarism vs. Freebies

Welfarism: Rooted in constitutional duty, it includes sustained efforts like food security (PDS), jobs (MGNREGA), and education/health support—building human capital.
Freebies: Short-term handouts (e.g., free power, water, debt waivers) lack sustainability, distort markets, erode credit culture, and discourage work, as per the Supreme Court.

Multiple approaches to Welfarism

Charity Approach	Needs Approach	Rights-Based Approach
Focuses on input not outcome	Focus on input and outcome to meet needs	Focus on process and outcome for realizing rights
Recognizes moral responsibility of rich towards poor	Recognizes needs as valid claims	Recognizes rights as claims toward legal and moral duty-bearers
Individuals are seen as victims	Individuals are objects of development interventions	Individuals and groups are empowered to claim their rights
Focuses on manifestation of problems	Focuses on immediate causes of problems	Focuses on structural causes and their manifestations

Constitutional and Legal Perspectives

Directive Principles of State Policy (DPSP): Various Articles 38,39,41 emphasizes role of state to:-
- secure a social order for the promotion of welfare of the people
- ensure men and women have adequate means of livelihood
- prevent concentration of wealth
- Right to work, to education and to public assistance in certain cases
Supreme Court judgement:
- Subramaniyam Balaji Case (2013): A two-judge bench held that "state distributing largesse in the form of distribution of colour TVs, laptops, etc. to eligible and deserving persons is directly related to the Directive Principles of State Policy" and warrants no interference by the court.
- Ashwini Kumar Upadhyay v Union of India (case is pending): The Supreme Court is hearing challenges against the practice of offering and distributing freebies during election campaigns.
Election Commission's: It has called for transparency in electoral promises, urging political parties to disclose funding mechanisms for freebies.

Impacts of Freebies

Positive (Welfarism)	Negative (Freebies)
Fulfilment of Basic Needs: Provisioning of food and nutrition, healthcare, housing, education can alleviate burden of poor.	Financial Burden: It leads to strained government budgets, increased fiscal deficits and reduced spending on infrastructure development, job creation.
Addresses social and gender disparities: Mid-day meal, free bicycle has led to better enrolment.	Dependency culture: It can results in decreased individual motivation and productivity.
Promotes inclusivity and social mobility: Removal of financial barriers through various services can lead to better inclusive growth.	Undermine Sustainable growth and affect Intergenerational equity: : E.g. Free electricity, water can led to depletion of ground water leading to wastage of resources, and increased burden on future generations.
Political Participation: Freebies can attract disengaged voters, increase electoral participation and foster a more representative democracy.	Freebies Politics: It can be used as populist measure to secure votes rather than address socio-economic disparities.
Mitigate failure of market: Address distributional consequences of economic reforms such as Under-employment and low inter-generational mobility.	Undermine Market: It can undermine quality and competitiveness of manufacturing sector by diverting resources away from investments.

Many experts observed that in the recent times, the distinction between welfare and freebies seems to have vanished as the two seem to have become synonyms.

Steps to be taken

Policy Reforms
- Fiscal Prudence and Debt Management: Prioritize sustainable welfare schemes with sunset clauses maintaining fiscal discipline and public debt sustainability.
- Prevent Leakages and Corruption: Subsidies must reach right people without leakage or corruption.
- Expand Insurance Coverage: It can act as a safeguard mechanism especially for vulnerable sections in case of shocks such as Covid-19.
- Build political consensus: Centre & States together should come together to arrest misuse of welfare schemes in name of freebies.
Role of Election Commission: It can ensure transparency in electoral promises by regulating manifestos and enforcing their accountability.
- Freebies aren't truly 'free,' and political parties must disclose funding and trade-offs to curb 'competitive populism'.
Skill Development and Self-Reliance: It helps to empower individuals and reduce dependency on freebies.
Voter Awareness: Educate voters about long-term consequences of freebies to reduce their appeal for irrational freebies.
Judicial Oversight and Interventions: Expert committees comprising members from NITI Ayog, RBI, and Finance Commission can be formed to assess impact of freebies.
Learning from Global Examples:
- Sri Lanka's 2019 tax cuts as per election promise led to significant revenue loss snowballing into financial collapse.
- Venezuela's populist policies in form of freebies and loan waivers led to an economic crisis and prolonged recovery thereafter.

Conclusion

In alignment with the Amartya Sen's "Capability Approach," governments must reprioritize long-term empowerment enhancing human capabilities and freedoms over short-term freebies. It can help in avoiding the race to the bottom and prevent fiscal disaster, as warned by NK Singh. (Chairman, 15th Finance Commission)