By Admin 
Former Reserve Bank of India (RBI) Governor Duvvuri Subbarao has expressed serious concern over the growing freebie culture i.e. free facilities and cash promises during elections in India. He said in one of his articles that even though elections can be won through these free schemes, it does not strengthen the future of the country. Subbarao said that ‘distributing borrowed money is easy, but it does not create a nation.’
Competition of promises in elections
Subbarao gave the example of Bihar assembly elections and said that the election campaign had turned into a ‘competition of populist promises’. He said that the NDA government sent Rs 10,000 to the accounts of about 1.2 crore women during the election campaign, while the opposition alliance made big promises – Rs 30,000 to every woman and a government job in every household. According to him, the atmosphere during the elections was such that the political parties had completely forgotten the limits of economic responsibility and budget.
Freebie destroys influence and trust
The former governor says that when every party announces free schemes during elections, their influence gradually disappears. People start understanding that these promises are limited to elections only and are not necessarily fulfilled. He said- ‘When promises exceed limits, people stop trusting.’
Many states are burdened with financial burden
According to Subbarao, after implementing the election promises, many states have now started understanding the real value of this model. He said that the expenditure on social schemes of Andhra Pradesh is much more than estimated. Telangana is already facing huge financial pressure. Even in Maharashtra and Karnataka, the budget for other development works is falling short. He said that when a large part of the budget is spent on cash transfers, freebies and subsidies, investment on education, health, employment and infrastructure reduces.
Giving freebie by borrowing is the most dangerous
Subbarao’s biggest warning was that governments are borrowing to complete these schemes. He said- ‘Today’s expenses are becoming a burden on people’s tomorrow. The money given today will have to be repaid by future generations.
Politics silent due to fear
The former governor says that no political party in India wants to oppose the freebie culture because they fear that they will be called ‘anti-poor’. He says that this is not the problem of just one party but the weakness of the entire political system.
Called the freebie a ‘political failure’
Subbarao said that the free schemes are a way of acknowledging that the government has failed to provide employment, income and opportunities. He said, ‘It is easy to give money to people for today’s needs, but making them self-reliant is real development.’
need to make national rules
He suggested that a national framework should be created in India, which would decide how much amount the government can spend on free schemes. What can be announced before the elections and most importantly where will the money come from.