Fiscal burden of subsidies triggers political debate, rethink on freebies

Political parties routinely make pre-poll promises of subsidies and freebies, but the fiscal burden of such guarantees weighs heavily on state budgets once in power

The political contestation over ‘freebies’, or populist schemes, is back with Prime Minister Narendra Modi urging the people to be wary of the Congress’ “fake promises” and the latter’s leaders hitting back by pointing out the “unfulfilled” promises of the Bharatiya Janata Party (BJP)-ruled governments at the Centre and in states. 

 

The subtext, however, of the verbal volleys between the BJP and Congress leaders and social media posts is the increasing fiscal burden on the state governments because of the slew of election promises that the two main national parties, as well as some of the regional parties, have made