Recently, while hearing a petition related to Tamil Nadu’s free electricity policy, the Supreme Court strongly criticized the growing trend of a “freebie culture” in India, such as providing free electricity. It warned that indiscriminate freebies, given without distinguishing between those who genuinely need them and those who can afford to pay, hinder the country’s economic development. It questioned whether states are prioritizing long-term infrastructure and employment generation. Emphasizing that welfare expenditure should be planned in a targeted manner, the Court issued notices to the Centre and other parties to explain the economic rationale behind such schemes. These observations underline the judiciary’s concern over the promotion of unfunded freebies in pre-election manifestos and policies.
In elections, freebies refer to goods or services that political parties or candidates promise or distribute to voters before or after elections to attract votes. Examples include free electricity, free rations (rice, wheat, pulses), free laptops and tablets, free bus travel, pensions, loan waivers, cash transfers, and subsidies. The reasons behind such freebies include quickly attracting voters, gaining support from economically weaker sections, showcasing welfare giveaways to the poor, countering rival parties’ promises, converting welfare schemes into electoral gains, building vote banks, diverting attention from governance failures, ensuring short-term political popularity, legally influencing voter behaviour, and ultimately winning elections at any cost. Looking at the positive economic impacts of freebies, free food, electricity, or cash transfers increase basic consumption. Increased spending by beneficiaries stimulates local markets, while free educational tools, health schemes, or nutrition programs can improve productivity in the long run. Targeted subsidies help reduce income and regional inequalities, and welfare support can reduce migration and social unrest. On the negative side, large subsidies increase fiscal deficits and debt, divert funds away from investment in infrastructure and healthcare systems, create inflationary pressures, and may force future taxpayers to bear higher taxes.
Across various states, political parties have used freebies as part of their election promises to come to power. In Tamil Nadu, these include free televisions, mixer-grinders, laptops, and free rice through the public distribution system. In Delhi, free electricity (up to a limit), free water supply, and free bus travel for women. In Andhra Pradesh, schemes such as Amma Vodi (financial assistance to mothers for children’s education), free ration distribution, and free bus travel for women. In Punjab, free electricity units for farmers and loan waivers. In Telangana, Rythu Bandhu (cash assistance to farmers) and free pensions for senior citizens. These schemes are projected as welfare measures, but critics argue that they are announced mainly to attract voters before elections.
Impact on State Economies in India
From a legal and ethical perspective in India, the Election Commission of India oversees the conduct of elections. Promising welfare schemes is not illegal, but distributing gifts or cash during campaigns may violate the model code of conduct. Many states are facing high expenditure due to electricity subsidies, free transport, and cash schemes. The Reserve Bank of India has warned that excessive freebies weaken fiscal stability. The Supreme Court of India has also cautioned against irrational freebies that harm the economy in the long run. According to RBI analysis, state government subsidies and freebies grew faster than general state expenditure between 2018 and 2024.
In some states, such welfare spending has reached up to 2.7% of state gross domestic product (GSDP). In Andhra Pradesh and Punjab, expenditure exceeded 2% of GSDP. In many states, freebies account for a quarter or more of own tax revenue. Tamil Nadu’s subsidy bill rose by 39% in a single year, reaching nearly ₹52,603 crore in 2024–25. These non-developmental subsidies have significantly increased government expenditure. In Karnataka, the “Gruha Jyothi” scheme (with a ₹12,000 crore budget) provides up to 200 units of free electricity per month to eligible households, which helped the Congress party in the 2023 elections. Indian state governments announced welfare schemes worth more than one trillion rupees in a single financial year.
Globally too, many countries such as Venezuela, Argentina, Greece, Sri Lanka, and Zimbabwe became known for excessive freebies and popular welfare schemes, which later severely affected their economies. Severe foreign exchange crises and persistent fiscal deficits worsened, and dependence on International Monetary Fund (IMF) bailouts increased. While welfare policies are important, these examples show that high-cost, unfunded freebies, if not carefully designed and fiscally managed, can seriously undermine economic stability. However, in many countries, election freebies are not permitted. Strong electoral laws have been enacted to ensure fiscal discipline. In Germany, constitutional debt brake rules prevent political parties from making unfunded populist promises. Switzerland requires voter approval through referendums for major public spending. Singapore follows a targeted welfare model. In Japan, election laws strictly prohibit gifts or material inducements to voters. By limiting irresponsible promises, the United Kingdom requires parties to publish costed manifestos, thereby safeguarding long-term fiscal stability and democratic integrity.
What Is the Duty of Political Parties?
When announcing freebies (welfare promises) in election manifestos, political parties in India must adhere to strong ethical principles to protect the economy, democracy, and public interest. Based on fiscal ethics, freebies should be promised only after assessing financial capacity and long-term budgetary impact. Parties must transparently disclose the costs of freebies and their funding sources in manifestos. As part of accountability, parties should be answerable to citizens for the outcomes of welfare scheme implementation. Guided by principles of equity and justice, freebies should target genuinely needy sections.
With sustainability as an ethical goal, welfare schemes should not burden future generations through increased debt. In keeping with electoral integrity, freebies should not be used as tools for vote-buying or misleading voters. Priority should be given to productive welfare such as health and skill development. Constitutional values and election laws enforced by the Election Commission of India must be respected. As part of ethical responsibility, political leaders should act in the larger national interest rather than seeking short-term popularity. Transparent, targeted, and outcome-based welfare policies are essential for inclusive and sustainable development.
