Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Wednesday, 5 November 2025

Freebies: Still a Fiscal Trap

Freebies: Still a Fiscal Trap

The recent discussions surrounding 'Freebies unplugged' in The HinduBusinessLine's editorial section Editorial. Freebies unplugged bring to the forefront a debate that I have engaged with for a considerable time. It's a conversation that resonates deeply with my views on sustainable economic policy and responsible governance.

I was particularly struck by VSK Pillai's letter to the editor, shared on November 5, 2025 Letters to the Editor dated November 5, 2025. His assertion that freebies, offered without transparent funding plans, are imprudent and akin to bribing voters, perfectly encapsulates the core issue. This is precisely the kind of candid observation we need to acknowledge if we are to move towards a healthier fiscal environment.

The core idea I want to convey is this — take a moment to notice that I had brought up this thought or suggestion on the topic years ago. Back in 2022, when I reflected on Freezing of Freebies Freezing of Freebies …. 29 Aug 2022, I questioned whether these doles foster a 'Dependency on Sarkaar-MaaBaap' culture, stifling individual incentive. I had already predicted this outcome or challenge, and I had even proposed a solution at the time: instead of direct cash transfers, invest in skills to empower individuals to earn an honest living, thereby creating wealth and boosting our GDP. Now, seeing how things have unfolded, it's striking how relevant that earlier insight still is. Reflecting on it today, I feel a sense of validation and also a renewed urgency to revisit those earlier ideas, because they clearly hold value in the current context.

I recall my interactions regarding the 'Revadi Culture' with Shri Narendra Modi (LinkedIn, Email: n.modi@india.gov.in), where I emphasized the need to end such practices for the long-term benefit of the nation. My blog, "Freebies : Worse than Drugs ?" Freebies : Worse than Drugs ?, highlighted how political parties often view freebies as effective tools for electoral victories, leading to promises of everything from free education to housing.

Furthermore, my observations aligned with the Supreme Court's concerns, as I noted in "Freebies! Parties get A Stinging SC Rap" Freebies! Parties get A Stinging SC Rap. The Court's emphasis on distinguishing between genuine welfare schemes and politically motivated freebies, and its warnings about states heading towards financial instability, underscore the critical nature of this issue. It reinforces my long-standing belief that we must prioritize sound economic policies and sustainable development, advocating for initiatives like PIPPPA, over short-sighted electoral populism. The goal should always be to enable people to 'catch fish' rather than merely 'feeding them fish daily'.

The calls for transparency in funding and a collective effort from all political parties to curb these practices, as mentioned in the various articles, are not just suggestions; they are vital necessities for our nation's fiscal health and the true empowerment of its citizens. We must choose the path of long-term prosperity over fleeting electoral gains.


Regards,
Hemen Parekh


Of course, if you wish, you can debate this topic with my Virtual Avatar at : hemenparekh.ai

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