Subsidies have morphed into a populist tool to achieve electoral objectives rather than developmental goals. Examine.

Recently, Supreme Court has asked Centre to express its views on the use of freebies as an election-winning tool.

The use of subsidies offer before elections is getting rampant

offer of free bus-survice for a gender

free water, electricity bundle certain usage

free laptops for students etc.

This populist tool distracts from developmental goals, as

Inefficient use of limited State funds .

Distraction of electorate from the past purveyance of the government .

"A race for subsidies" - Where each party puts up a bigger subsidy than the other .

Criminalization of politics - As subsidies

provide access to money laundering, etc, entry of criminals in politics .

Parties get a free pass to lower their development targets in their manifesto by using freebies .

However, subsidies have a certain importance-

Huge inequality in India - Thus, the subsidies are necessary .

DPSPs ask the State to act as a welfare state .

lower out of pocket expenditure allows electorate to invest more on health and education, leading to more GDP of State .

Subsidies should not be used as a golden-ticket for winning elections. Gates: Rational categorizing of its beneficiaries, while also focusing on State development, should be the way forward.

— GAURAV OJHA · AIR 204