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Freebies’ fiscal impact

With reference to the Editorial, ‘Freebies unplugged’ (April 7); the debate on freebies should move beyond moral arguments and focus on fiscal quality and outcome efficiency. Does the government spending deliver?

When a rising share of state budgets is locked into politically driven transfers, it reduces flexibility to respond to shocks and crowds out capex. Every major welfare promise must be accompanied by a medium-term fiscal impact statement. Independent state-level fiscal councils could audit such commitments annually.

Welfare schemes should be linked to verifiable outcomes like school attendance, skill certification, maternal health, or energy efficiency so that public money builds human capital instead of just consumption.

Crucially, election-time announcements should be regulated through stricter disclosure norms by the Election Commission, making parties accountable for financing plans.

Amarjeet Kumar

Hazaribagh (Jharkhand)

In defence of freebies

More often than not, freebies are the state’s direct interface with its citizens. In an economy where consumption is the engine, transfers in kind: free food, power, transport, spur demand far more effectively than random tax incentives.

Freebies double up as instruments of social stability in a deeply unequal society. A subsidized bus ride or a free rations is a hedge against discontent. They do sharpen accountability, as voters can see, feel, and judge delivery in real time.

Long-term gains — nutrition, mobility, and access which often translate into better schooling and productivity. Not every freebie is fiscally reckless . Freebies are imperfect, but pragmatic, nevertheless.

R Narayanan

Navi Mumbai

Succour for poor

With reference to ‘Freebies unplugged’ (April 7), the income inequalities and the uniform indirect tax structure necessitated States to offer such compassionate to the needy. Of course the list of freebies has enlarged over a period of time and has become a powerful election tool now, unmindful of its ramifications on the economy and the taxpayer. As aptly suggested, instead of extending UCTs, the poll manifestos should aim towards enhanced investments in health, education, nutrition and capex for long-ter benefits.

As a deterrent unrealistic promises, the election code can be reformed with provisions to recover part of the additional expenditure on account of freebies involved, from the party funds, salaries and other benefits payable to the elected representatives.

Sitaram Popuri

Bengaluru

Futile exit polls

This refers to ‘No exit polls from 7 a.m. of April 9 till 6.30 p.m. of April 29: EC’ (April 7). Well done, EC. This move is a big relief for all as exit polls have become farcical.

In fact, such polls have led to needless media hype apart from wastage of time and money. It’s a different matter that the Opposition political parties may still see ‘Red’ over it. But, let us not get carried away by that.

SK Gupta

New Delhi

Published on April 7, 2026