Freebies are necessary but there should be a monitoring mechanism, say activists

As parties in their manifestos promise numerous freebies, economists feel that it is important to take into consideration the caution sounded by the RBI in its 2022 State Finances: A Risk Analysis report, where it was pointed out that the widening gap between State revenue and expenditure had worsened due to giving of freebies. 

C. Muthuraja, Retd. Professor of Economics, says that freebies cannot be done away with in a welfare State. “Of late we are seeing ‘freebie’ as a negative word but if we have to attain the UN’s sustainable development goals across all regions in the State and the country then freebies have to play an important role. For example there are tribals living in remote places in Kodaikanal who would immensely benefit with the cash given. But in order to have good governance, freebies should not be merely a populist measure. There should be a mechanism in place that allows transparency and also gives details on who got the benefits and how it has benefited the targeted beneficiaries,” he says.

Freebies can also be given in the form of education, healthcare, nutrition etc. “In Tamil Nadu the nutrition index shows malnutrition among women and children, so freebies that would increase the nutrition profile could be a gamechanger,” he points out.

Financial independence, empowerment for women

Rueing that freebies have become a bidding war among political parties, CPI (M) member K. Balabharathi warns that it may bring about a dependency culture. “Freebies should be seen as an impetus that will take the women to the next stage that is financial independence and empowerment and this should be the motto of a welfare State,” she adds.

At the integrated compost yard, at Chinnalapatti, Sridevi, 31, a garbage separator, is a single mother with two girls studying in the local primary school. “The  ₹1000 I was getting monthly has been useful to me. I had opened two accounts in my daughters names at the Post Office and I have been depositing ₹500 in each account every month. Free bus travel also helped me save money otherwise I was paying ₹80 every day to come to work,” she adds. For Sridevi, who dropped out of school in VIII standard, this is part of her home budgetary management and she hopes it will help her children succeed in life.

Edward Sahayaraj, Director of EPSA Trust, an NGO based in Tiruchi, narrates an incident where ₹1000 given to a homemaker helped a family who were in dire straits, after a petty shop being run by her husband was razed down in an encroachment drive. “Doing away with such monetary schemes is not practical as there are numerous families dependent on it. But the pertinent question that arises is why in a welfare State after so many years of  Independence we still have a section of people who survive on this dole,” he wonders. “We lack policies that see inclusive development,” he notes. 

S. P. Jyothi of Sri Sakthi Social Economical and Educational Welfare Trust, Ayyampalayam, Theni district, says that freebies like free-bus travel and monthly monetary benefits are welcome measures but focus should also be given on increasing the employment opportunities of marginalised women. “This can be done by honing their technical skills like stitching etc., and also by giving them financial access to obtain loans so that they become independent and are capable of giving employment to others. Hand-holding of SHGs can actually fuel the economy and also reduce the dependence on such freebies,” she points out.