To:
Hon'ble Shri Amit Shah
Union Home Minister
Government of India
North Block, New Delhi - 110001
==============================================
Subject:
Request to Introduce the Prevention of Irresponsible Promises by Political Parties
Act, 2026 (PIPPPA-2026) in the Next Session of Lok Sabha
Respected Shri Amit Shah Ji,
Namaskar.
I am writing to bring to your urgent attention a matter of grave national
importance:
- the fiscal crisis engulfing several Indian states due to the
proliferation of fiscally irresponsible freebies promised by political parties during
elections.
THE CRISIS : EVIDENCE-BASED ANALYSIS
Enclosed herewith is a comprehensive table documenting the TOP TEN states
whose finances have been devastated by freebie politics. The data reveals:
1. PUNJAB leads with a catastrophic debt-to-GSDP ratio of 48.98% (against the
FRBM mandated 20%), spending 24% of revenue receipts on subsidies and
45.5% of tax revenue on freebies.
2. RAJASTHAN follows at 42.37% debt-to-GSDP, which rises to 54.94% when state
enterprise borrowings and guarantees are included.
3. ANDHRA PRADESH, WEST BENGAL, BIHAR, TAMIL NADU, TELANGANA, and
MAHARASHTRA are all experiencing severe fiscal stress.
4. Combined, these ten states account for a disproportionate share of India's state
debt burden.
The Reserve Bank of India has warned that annual costs are rising by ₹10,000-
12,000 crore due to new freebies, crowding out infrastructure and development
spending.
NITI Aayog's Fiscal Health Index confirms that states with higher freebies
consistently show weaker fiscal parameters.
THE SUPREME COURT'S CALL FOR ACTION
The Hon'ble Supreme Court has repeatedly condemned this "revadi culture":
· • The Court observed that freebies "can push states towards imminent
bankruptcy" and are distributed "only for increasing the popularity of the party
and electoral prospects."
· • The Court has called for a legislative solution, noting that "the court
cannot pass any direction on electoral promises" but can "help Parliament with a
report."
· • Most recently, the Court condemned pre-election freebies, warning they
"discourage work and create a class of parasites."
THE SOLUTION: PIPPPA-2026
I humbly submit for your consideration a draft Bill - the Prevention of Irresponsible
Promises by Political Parties Act, 2026 (PIPPPA-2026) - enclosed herewith.
This Bill is based on a concept I outlined in my blog post dated 21 March 2024,
and refined in light of subsequent developments.
https://myblogepage.blogspot.com/2024/03/dear-pm-promise-pipppa-not-freebies.html
KEY FEATURES:
1. DISTINGUISHES between genuine welfare (infrastructure, healthcare,
education, targeted support for vulnerable sections) and electoral bribes (cash
handouts, consumer durables, unconditional loan waivers, etc.)
2. MANDATES that political parties file detailed manifestos 180 days before
elections, specifying: cost of each promise, source of funding, implementation
timeline, and fiscal impact analysis.
3. ESTABLISHES independent Manifesto Scrutiny Committees (comprising retired
judges, economists, CAG and RBI representatives) to examine manifestos.
4. IMPOSES graduated penalties based on severity of violation: Level 1 (Censure
and fines), Level 2 (Freezing of party symbol), Level 3 (De-recognition for 5
years), Level 4 (Declaration as illegal association)
5. ENSURES transparency through mandatory publication on party websites,
Election Commission website, and major newspapers.
6. PROTECTS genuine welfare aligned with Directive Principles of State Policy.
WHY THIS BILL IS NECESSARY NOW
1. FISCAL SUSTAINABILITY: India aspires to be a $5 trillion economy and beyond.
We cannot achieve this with states drowning in debt due to freebies.
2. INTERGENERATIONAL EQUITY: Current freebies create debt burdens that our
children and grandchildren will bear.
3. VOTER DIGNITY: Indian voters deserve to be treated as stakeholders in nation-
building, not as beneficiaries to be bribed.
4. ECONOMIC EFFICIENCY: Resources diverted to freebies could build world-class
infrastructure, hospitals, universities, and manufacturing capacity.
5. CONSTITUTIONAL DUTY: Article 292 and 293 empower Parliament to regulate
borrowing. The FRBM Act precedent shows such regulation is necessary and
constitutional.
REQUEST FOR ACTION
Sir,
I respectfully urge you to:
1. Review the enclosed draft Bill (PIPPPA-2026);
2. Introduce the Bill in the next session of the Lok Sabha;
3. Build cross-party consensus on this critical issue (as all parties ultimately
govern and face these fiscal constraints);
4. Position this as a nation-building measure, not a partisan initiative.
This Bill will be your Government's lasting legacy - protecting India's fiscal health
and democratic integrity for generations to come.
CONCLUSION
The time for action is now, before more states descend into fiscal crisis.
As the
Hon'ble Prime Minister often says, "sabka saath, sabka vikas, sabka vishwas" -
this requires fiscal responsibility, not fiscal recklessness.
I place myself at your disposal for any clarifications or discussions on this matter.
With profound respect and regards,
Hemen Parekh
Email: hcp@RecruitGuru.com
Date: 13 February 2026
Website: www.hemenparekh.ai
Blog: https://myblogepage.blogspot.com
ENCLOSURES:
1. Table: Top Ten States Suffering from Freebie Politics
2. Draft Bill:
The Prevention of Irresponsible Promises by Political Parties Act, 2026 (PIPPPA-2026)
Jai Hind ! Jai Bharat !
PIPPPA-2026:
COMPREHENSIVE PACKAGE
Prevention of Irresponsible Promises by Political Parties
Act, 2026
DOCUMENT 1: TOP TEN STATES SUFFERING FROM FREEBIE POLITICS
Evidence of Fiscal Distress Caused by
Freebies (Data as of 2024-25)
|
State |
Debt-to-GSDP Ratio |
Fiscal Deficit (% of GSDP) |
Subsidy Burden (% of Revenue) |
Key Freebie Schemes |
|
Punjab |
48.98% (Target: 20%) |
4.5%+ |
24% (Highest) |
Free electricity to farmers; Farm
loan waivers; Free power to 60 lakh people |
|
Rajasthan |
42.37% |
3.9% |
13% |
Free electricity; 95%+ subsidies
for power sector |
|
West Bengal |
37.39% |
Elevated |
High |
Various welfare schemes; Revenue
deficit rising |
|
Bihar |
36.73% |
Elevated |
High |
Multiple welfare schemes |
|
Andhra Pradesh |
35.30% |
4.2% |
15% |
Free power; Loan waivers; Revenue
surplus dropped 35% |
|
Madhya Pradesh |
31.53% |
4.1% |
Elevated |
Various welfare schemes |
|
Telangana |
27.80% |
Moderate |
Elevated |
Free power; Cash transfer schemes |
|
Tamil Nadu |
27.27% |
Moderate |
14% |
Free bus travel for women (9% of
subsidy spending); Mixer-grinders; TVs |
|
Chhattisgarh |
26.47% |
Moderate |
Moderate |
Various welfare schemes |
|
Maharashtra |
Elevated |
Rising (0.9% revenue deficit FY26) |
Rising sharply |
Ladki Bahin scheme (₹460 bn FY25,
cut to ₹360 bn FY26); ₹2,100/month to women; Free LPG; Toll waivers |
Key Findings:
·
FRBM Act mandates maximum 20%
debt-to-GSDP ratio - all 10 states exceed this limit
·
Combined these states represent
significant portion of India's total state debt
·
Rising subsidy costs crowd out
infrastructure and development spending
·
Annual costs rising by
₹10,000-12,000 crore due to new freebies (RBI)
·
States with higher freebies show
weaker fiscal parameters per NITI Aayog's Fiscal Health Index
Sources: CAG Reports (2020-21 to 2024-25), RBI State Finances Study 2024-25,
PRS Legislative Research, Emkay Global Financial Services, Various State Budget
Documents
DOCUMENT 2: DRAFT BILL - PIPPPA 2026
THE PREVENTION OF IRRESPONSIBLE PROMISES BY POLITICAL
PARTIES ACT, 2026 (PIPPPA-2026)
A BILL
to prevent political parties from making fiscally irresponsible promises and offering
freebies in their election manifestos, to protect the financial health of the Union
and States, to uphold the dignity of voters, and for matters connected therewith
or incidental
thereto.
BE it enacted by Parliament in the Seventy-seventh Year of the Republic of India
as follows:—
CHAPTER I - PRELIMINARY
1. Short title, extent and commencement
(1) This Act may be called the Prevention of Irresponsible Promises by Political
Parties Act, 2026.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette,
appoint.
2. Definitions
In this Act, unless the context otherwise
requires,—
"Freebie" means any promise made in an election manifesto or during an election
campaign that involves distribution of goods, services, or cash transfers to voters
without:
(i) adequate financial provisioning,
(ii) clear budgetary allocation and
funding source,
(iii) contribution to long-term asset
creation or economic productivity, or
(iv) transparent cost-benefit
analysis;
"Election Manifesto" means any document, declaration, or public statement
issued by a political party that outlines promises, schemes, or policies to be
implemented if the party comes to power;
"Political Party" means any political party registered with the Election
Commission under Section 29A of the Representation of the
People Act, 1951;
"Election Commission" means the Election Commission of India constituted
under Article 324 of the Constitution;
"Manifesto Scrutiny Committee" means the committee constituted under
Section 6 of this Act;
"Responsible Promise" means a promise that:
(i) has detailed financial
provisioning,
(ii) creates long-term assets or
enhances productivity,
(iii) is targeted to specific
vulnerable sections based on objective criteria,
(iv) does not discriminate on grounds
of religion, caste, creed, or region, and
(v) is accompanied by transparent
implementation and monitoring mechanisms.
CHAPTER II - PREAMBLE AND OBJECTIVES
3. Preamble
We, the people of India, declare that our votes are sacred instruments of
democracy and not commodities for sale. We reject attempts by political parties
to bribe voters through fiscally
irresponsible freebies that:
(a) undermine the financial stability of
the Union and States,
(b) create unsustainable debt burdens for
future generations,
(c) divert resources from essential
infrastructure and development,
(d) foster a culture of dependence rather
than empowerment, and
(e) corrupt the electoral process by treating citizens as beneficiaries rather than
stakeholders in nation-building.
4. Objectives
The objectives of this Act are:
(a) to ensure election manifestos contain
only fiscally responsible promises,
(b) to protect the fiscal health of the
Union and State governments,
(c) to promote transparency and accountability
in political promises,
(d) to distinguish between genuine welfare
measures and electoral bribes,
(e) to uphold the dignity and intelligence
of voters, and
(f) to ensure political competition is based on governance vision rather than
distribution of public resources as
private goods.
CHAPTER III - RESTRICTIONS ON FREEBIES IN ELECTION
MANIFESTOS
5. Prohibition of Freebies
(1) No political party shall promise any
freebie in its election manifesto.
(2) Without prejudice to the generality of sub-section (1), the following shall be
deemed to be freebies:
(a) Cash transfers without work requirement or productivity linkage;
(b) Distribution of consumer durables (televisions, mixer-grinders, laptops,
tablets, smartphones, gold coins, etc.);
(c) Free or heavily subsidized alcohol, food
packets not linked to food security;
(d) Unconditional payment of utility bills (electricity, water) for all
citizens;
(e) Unconditional loan waivers not linked to genuine distress;
(f) Distribution of vehicles (bicycles, scooters) without skills/employment
linkage;
(g) Unemployment allowances without skilling or work requirements;
(h) Any promise discriminating on grounds of religion, caste, or region;
(i) Any other item specified by the Manifesto Scrutiny Committee as a
freebie.
(3) Notwithstanding sub-section (2), the following shall NOT be deemed freebies if
they meet the criteria in Section
2(f):
(a) Infrastructure projects (highways, ports, airports, railways);
(b) Healthcare facilities accessible to all citizens;
(c) Educational institutions and skill development programs;
(d) Targeted nutrition programs for children and pregnant women;
(e) Social security pensions for elderly, disabled, and destitute;
(f) Subsidized food grains for Below Poverty Line families;
(g) Agricultural support linked to productivity enhancement;
(h) Housing for economically weaker sections;
(i) Clean drinking water and sanitation facilities;
(j) Disaster relief and rehabilitation measures.
CHAPTER IV - MANIFESTO FILING AND SCRUTINY
6. Constitution of Manifesto Scrutiny Committee
(1) The Election Commission shall constitute a Manifesto Scrutiny Committee for
each general election consisting
of:
(a) A retired Supreme Court Judge (Chairperson);
(b) A retired Chief Secretary;
(c) An economist of national repute;
(d) A representative from the Comptroller and Auditor General;
(e) A representative from the Reserve Bank of India (for State elections) or
NITI Aayog (for Lok Sabha elections).
(2) The Committee shall serve for the
duration of the election cycle.
7. Mandatory Filing of Election Manifestos
(1) Every political party contesting an election shall file its election manifesto with
the Election Commission at
least 180 days before the first date of polling.
(2) The manifesto shall be filed in the
prescribed format and shall contain:
(a) Complete list of all promises and schemes;
(b) Estimated cost of each promise (capital and recurring for 5 years);
(c) Source of funding (new taxes, expenditure cuts, borrowing, etc.);
(d) Implementation timeline and monitoring mechanism;
(e) Cost-benefit analysis for each major promise;
(f) Impact on fiscal deficit and state/central debt.
CHAPTER V - ENFORCEMENT AND PENALTIES
9. Penalties for Violation
(1) If a political party's manifesto contains freebies despite the Committee's
prohibition, the Election Commission may, depending on the severity and extent
of violation:
(a) LEVEL 1 (Minor Violation):
• Issue public censure;
• Require removal of the offending promise(s);
• Fine up to ₹10 crore.
(b) LEVEL 2 (Moderate Violation):
• Freeze party symbol for specific election;
• Prohibit acceptance of Electoral Bonds or donations for 2 years;
• Fine up to ₹50 crore.
(c) LEVEL 3 (Serious Violation):
• Deregister/de-recognize party for 5 years;
• Prohibit party from contesting elections for 5 years;
• Freeze all party bank
accounts;
• Fine up to ₹100 crore.
(d) LEVEL 4 (Grave Violation):
• Declare party as "illegal association" under Unlawful
Activities (Prevention) Act;
• Seize all movable and immovable assets;
• Permanent ban on party and its office bearers from electoral politics;
• Criminal prosecution of party leaders.
(2) The Election Commission shall determine the level of violation based on:
number and magnitude of freebies promised, estimated fiscal impact, whether
violation was willful or inadvertent, party's past record of compliance, and any
other relevant factor.
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