Freebies out, but let welfare schemes continue
New Delhi’s move to extend the free foodgrain scheme for another three months may fly in the face of economic prudence. Or so believe several economists. At a time when India continues to face high fiscal deficit, the decision is bound to cost the exchequer an additional Rs 44,762 crore, taking the food subsidy bill to a massive Rs 3.4 lakh crore, way above the budget estimate of Rs 2.07 lakh crore. The additional expenditure may push up the fiscal deficit beyond the targeted 6.4% of the GDP.
It is a given that the government has to tighten the belt and control the deficit. But the Centre is aware that winding up the foodgrain scheme ahead of the state elections is suicidal. There is documented evidence that such social schemes always sway the outcome of elections.
Interestingly, no political party ever called the extension of the scheme meant for those below the poverty line a freebie or part of a ‘revdi’ culture. Everyone knows that post-pandemic, the number of hungry stomachs in the country has gone up substantially despite most economic activities back on track. There is a healthy consensus that it is the government’s job to feed them. This is exactly what many state governments screamed when New Delhi ran a smear campaign against them for initiating social welfare schemes. Tamil Nadu, which is at the forefront of the fight for social justice, flatly objected to the usage of the term ‘freebie’. The state finance minister said free food, uniforms and computers are not random freebies, but an investment into TN’s future.
The Supreme Court believes that freebies or handouts would continue to destroy the economy unless there is a conscious decision by political parties to stop them. However, the Court went back on its earlier proposal to form an expert committee to study the issue. Instead, it said a new three-judge bench would take up pleas to review a 2013 SC judgment that said some freebies are related to the directive principles guiding a state’s policies. Let’s hope that the review would bring more clarity on ‘freebie’ and keep all social welfare schemes out of its purview. State governments should continue to reach out to the people at the bottom of the pyramid with welfare schemes to herald social justice to all.