Freebies are not always freebies. RBI’s Fiscal Policy Committee member Asima Goyal has said that if political parties make promises about freebies, they should explain to the voters about the source of funds for it.
Asima Goyal told PTI:
Freebies are not always freebies. If political parties make promises about freebies, they have to explain to the voters the source of the funding. Alternate political parties announcing freebies should end competing promises of mass appeal. Freebies don’t really come to you for free. Freebies in the form of grants can have a huge impact. For example, such subsidies affect production and increase indirect costs. In Punjab, due to free electricity, the groundwater level has decreased. Spending on freebies will deprive people of basic facilities like quality education, sanitation, air and drinking water.
So when parties announce freebies, they should explain to the voters where the funds will come from. This will reduce people’s attraction to competing promises of mass appeal.
Thus he has spoken.
Prime Minister condemned: Dedicating the 2G Ethanol Plant at Panipat recently, Prime Minister Modi said, “If there is selfishness in politics, anyone can announce free petrol and diesel. Freebies will take away the rights of our children and prevent the country from becoming self-reliant. Such selfish policies will also increase the burden on honest tax payers. To solve the problems faced by the country It requires clear purpose and commitment, which requires hard work, right policies and massive investments, he said.
Of late, there have been discussions about announcing promises of freebies in elections. In this case, Reserve Bank’s Financial Policy Committee member Aseema Goyal has also said that freebies are dangerous.