Historical aspect of freebies:
Over 2,000 years ago, in 140 B.C., Rome faced widespread chaos.1 The people were starving, the cities were overcrowded and unsanitary, and riots erupted as frustration with the government grew. To calm the unrest, the Roman Empire devised a clever tactic: they provided free food grain, bread, and meat and organized grand spectacles like chariot races, street parades, and animal fights. With the masses distracted by these lavish gifts and entertainment, they stopped questioning their rulers, who did little to address the city’s real problems. This marked the birth of “bread and circuses”, a political strategy to keep the public content while sidestepping the deeper challenges faced by the state.
Freebie Vs Welfare:
According to the Reserve Bank of India (RBI)’s June 2022 bulletin2, “freebies’ are defined as public welfare measures that are provided free of charge.” In contrast, welfare policies are targeted schemes to benefit those in need. These include subsidies and essential public services like building roads, hospitals, and schools. For example, giving away a free TV is a freebie, while providing free education is a welfare policy. Welfare policies focus on public services defined in the Union Budget and are intended for the greater good of society.
The issue with freebies arises when political leaders promise them, especially during elections, without a proper manifesto or long-term plan. Differentiating between a freebie and a welfare scheme depends on the context. For instance, providing food or funds during a natural disaster is an essential service, but in normal times, it could be seen as a freebie. Welfare services, like healthcare or education, are things people can’t organize themselves, so they rely on the government to provide them. The extent of these services depends on the government’s financial capacity. The terms “freebies” and “irrational” are subjective and don’t have strict legal definitions. The Indian Constitution, through its Directive Principles of State Policy, emphasizes the government’s responsibility to promote the economic and social welfare of its citizens. While freebies can be seen as tools for public welfare, however, they are often criticized for leading to a negative perception of the welfare state despite its role in supporting society.
Freebies in the context of India:
During the Tamil Nadu Assembly elections in 2006 and 2011, political parties promised to distribute freebies such as color televisions, mixers, grinders, and laptops in their manifestos to attract voters. In 2013, S. Subramaniam Balaji, an advocate, filed a petition against the Election Commission3, in which he argued that these promises amounted to electoral bribery under the Representation of the People Act. He claimed that using state funds for non-essential goods violated constitutional principles. The Madras High Court eventually ruled that freebies create an “uneven playing field.” This led the Election Commission to hold discussions with political parties to create guidelines on such promises, but party leaders opposed any restrictions, saying it infringed on their rights.
Similarly in Delhi, Chief Minister Arvind Kejriwal has been criticized for offering freebies like free electricity, water, and transportation. Opponents argue that this places a heavy burden on the government’s finances. When AAP (Aam Aadmi Party) came to power in Punjab, they implemented a promise of 300 units of free electricity for each household4, which significantly increased the state’s financial burden. Punjab, unlike Delhi, must cover all its public expenses without central government support which made it harder to sustain such subsidies. The state’s mounting unpaid subsidy bills and arrears have only added to its financial challenges.
A CRISIL report5 has highlighted that many Indian states are in a precarious debt situation, partly due to the freebie culture. The report specifically pointed to power subsidies as a major factor contributing to financial instability. Several political parties, including INC, AAP, DMK, and SP, have made promises of free electricity, laptops, and transportation to win votes. These promises, however, strain government finances and limit the ability to fund essential welfare programs. The 2008 loan waiver program by the UPA government6 is an example of how such freebies can disrupt the economy and lead to financial crises.
Freebies in Maharashtra:
In the recent 2024 Maharashtra Assembly election, both the MVA (Maha Vikas Aghadi) and Mahayuti alliances were competing for voters with promises of freebies. The MVA, comprising Shiv Sena (Uddhav faction), NCP (Sharad Pawar faction), and Congress, has introduced its ‘Loksevechi Panchasutri’ 7 plan, which includes Rs 3,000 per month in direct cash benefits, free bus rides for women, farm loan waivers up to Rs 3 lakh, Rs 4,000 for unemployed youth, and health insurance coverage of Rs 25 lakh for the poor. In response, the Mahayuti alliance, led by the BJP and Eknath Shinde’s Shiv Sena, has increased its promises. Under pressure from the MVA, they have raised the amount in their flagship Ladki Bahin scheme8 from Rs 1,500 to Rs 2,100 per month for women and senior citizens. They have also promised Rs 10,000 per month in aid to students and Rs 15,000 for farmers, an increase from the previous Rs 12,000. Despite Prime Minister Narendra Modi’s earlier criticism of the “revdi culture” of freebies, both alliances are now heavily relying on such promises to woo voters in this crucial election.
Maharashtra, India’s largest economy and the most industrialized state in India has maintained the leading position in the industrial sector in the country. Maharashtra plays a crucial role in the national economy, contributing 13.8%9 of the country’s industrial output Also Maharashtra’s GDP size is $439 billion; accounting for 14% of India’s GDP10. With a strong industrial base and being a major software exporter, Maharashtra’s economic health directly impacts India’s overall growth. However, the increasing reliance on freebies in election campaigns threatens this stability. Freebies, such as cash handouts and loan waivers, place a significant burden on the state’s finances, diverting funds away from critical areas like infrastructure development, healthcare, and education. In Maharashtra, where industry contributes nearly half of the state’s GSDP, sustained freebie spending can lead to reduced public investment, slowing industrial growth and innovation. This not only impacts job creation but also undermines the state’s economic competitiveness.
The ripple effect of Maharashtra’s weakened economy would be felt across India. As a top-performing state, any fiscal strain on Maharashtra affects national GDP, reduces the state’s contribution to India’s overall industrial output, and hampers national economic resilience. In the long run, the culture of freebies, if unchecked, could lead to higher state debt, reduced fiscal space, and undermine long-term development goals, making it harder for both Maharashtra and India to sustain high growth rates.
Conclusion:
“Give a man a fish and you feed him for a day, teach a man to fish and you feed him for a lifetime.” This proverb highlights the difference between temporary relief and long-term empowerment. In modern politics, especially in India, the increasing reliance on freebies offers short-term benefits but does little to build sustainable economic or social infrastructure. Instead of addressing root problems, these handouts create a dependency that burdens state finances and limits investment in essential public services like education, healthcare, and infrastructure. For true progress, political strategies must shift from offering immediate gains to promoting self-reliance, equipping citizens with tools and opportunities that empower them for the future. Only then can both the individual and the state flourish in the long run.
References:
- Mungale, V. (2022, November). Analysis of government freebies in India. Maharashtra Economic Development Council. https://www.medcindia.com/article-detail.php?page=1&ele_id=NOR_6387325dd21b73.01019208
- RBI Bulletin. (2022, June). State Finances: A Risk Analysis. https://www.rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=21070
- Sathasivam, P. (2007). JUDGMENT – S. Subramaniam Balaji v. The Government of Tamil Nadu & Ors. In IN THE SUPREME COURT OF INDIA [Legal case]. https://www.scobserver.in/wp-content/uploads/2022/08/S.-Subramaniam-Balaji-v-Government-of-Tamil-Nadu-Judgment.pdf
- The Hindu Bureau. (2022, April 17). AAP’s free electricity scheme: Punjab announces 300 units of free power from July 1. The Hindu. https://www.thehindu.com/news/national/other-states/punjab-announces-300-units-of-free-power-from-july-1/article65325944.ece
- Vemuri, S., Karunakaran, R. (2018). Rating criteria for state governments, CRISIL. https://crisil.com/content/dam/crisil/criteria_methodology/criteria-research/archive/CRISIL-Ratings-crieria-state-governments-may-2018.pdf
- Bavadekar, R. (2022). Freebies – The political path to economic disorder. TMV’s Knowledge Resource Centre Digital Repository. http://210.212.169.38/xmlui/handle/123456789/14634
- Mallikarjun Kharge, Sharad Pawar, & Uddhav Thackeray. (2024). MaharashtraNama, Legislative Assembly Elections 2024 [Press-release]. In Maha Vikas Aghadi. https://data.opencity.in/dataset/maharashtra-assembly-elections-2024-party-manifestos/resource/mva-manifesto-2024
- BJP. (2024) Sankalp Patra-2024 Maharashtra Assembly Election, Bharatiya Janata Party, Maharashtra https://data.opencity.in/dataset/maharashtra-assembly-elections-2024-party-manifestos/resource/bjp-maharashtra-manifesto-2024
- About Maharashtra. (2024). MIDC. https://www.midcindia.org/about-maharashtra/
- Ibid.
Vidhan Bharat 
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