India’s long-standing tradition of electoral freebies has once again come under scrutiny, with concerns that it fosters dependence and undermines economic self sufficiency. The debate is not new ~ governments in states especially and at the Centre have routinely announced cash giveaways, free electricity, water subsidies, and loan waivers as a means to secure votes. While such handouts offer temporary relief to struggling citizens, their long-term consequences can be damaging for both individuals and the economy.
At the heart of the issue lies a fundamental question: Are these hand-outs genuinely empowering the poor, or are they creating a cycle of dependence that discourages productivity? Critics argue that when people receive free rations, cash stipends, and other benefits without conditions, they may lose the motivation to seek employment or acquire skills. This concern was starkly reflected in the Supreme Court’s observation on Wednesday that hand-outs could be creating a “class of parasites” ~ a term that may seem harsh but highlights a real danger of excessive reliance on government support.
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There is no denying that social welfare programmes are essential, especially in a country where economic disparities remain stark. The problem arises when welfare transforms into electoral populism rather than a structured effort to uplift the underprivileged. Hand-outs should not be a substitute for robust economic policies that generate jobs and strengthen infrastructure. Countries across the world, including advanced economies, provide welfare benefits, but these are often tied to conditions such as employment training or education requirements. For instance, conditional cash transfers have been successful in Latin America, where recipients receive financial aid only if their children attend school or participate in health programmes.
In contrast, India’s political culture has normalised unconditional giveaways that serve short-term electoral gains while straining state finances. A better approach would be to shift from direct hand-outs to investment in sustainable development. Freebies could be replaced with skill-based stipends that incentivise people to join the workforce. Loan waivers for farmers, while politically attractive, do not address the root causes of agricultural distress. Instead, investment in irrigation, technology, and market access would offer long-term solutions. Moreover, the fiscal burden of such schemes is alarming. With multiple states implementing large-scale hand-out programmes, their finances are being stretched thin. The Reserve Bank of India has already warned against the risks of rising fiscal deficits due to these policies.
If unchecked, this practice could lead to financial instability, forcing future generations to pay for today’s political expediency. India must move beyond a culture of immediate gratification. Welfare policies should aim to make people self-reliant rather than dependent on periodic government doles. The focus must shift to creating an economy where opportunities, not hand-outs, drive social mobility. Political parties, regardless of ideology, must recognise that sustainable development, not short-term freebies, is the true path to empowerment.
