The spreading culture of freebies in India raises questions not only about sustainability but also about fairness and morality.
As Delhi gears up for elections, political parties are in fierce competition over who can promise more freebies. While all political parties are responsible for promoting the culture of freebies—some being more “khatakhat” than others—this article focuses on the largest party, the BJP. As the party in power at the Centre and in many states, and with its dominance likely to continue for the next couple of decades irrespective of electoral outcomes, the BJP’s actions carry far-reaching implications for India. Its embrace of the freebies culture stands in stark contrast to Prime Minister Narendra Modi’s repeated warnings about the economic dangers of indiscriminate handouts, or as he said, “revadis”. More importantly, it weakens PM’s efforts to shift the mindset of citizens from dependency to self-reliance, which is a critical driver for India’s long-term growth.
The spreading culture of freebies in India raises questions not only about sustainability but also about fairness and morality. From free cash, electricity, water, bus rides, laptops, electrical appliances, and liquor to farm loan waivers and pending utility bill write-offs, political parties in India continue to come up with many ways to bribe the voters. When elections are fought and won based on freebies rather than governance, development, and policy initiatives, it undermines the integrity of the electoral process. Yet, those who consistently raise concerns about the EVMs whenever they lose, seem notably unconcerned with the far more pressing threat to free and fair elections posed by such “bribing”.
While the public may not understand the nuanced discourse on merit and non-merit freebies or their impact on the nation, everyone inherently understands what benefits them in the long term and what is purely an electoral measure to win votes. In that sense, the voters are not without blame either.
The expenditure on freebies varies from state to state—from 0.1% to 2.7% of GSDP. The BJP could argue that unlike other political parties, it manages the fiscal burden of freebies more responsibly as the BJP-ruled states have not faced financial crisis as seen in Kerala and Himachal Pradesh, or openly admitted to lacking funds for development due to excessive freebie commitments, as was the case in Karnataka. However, it is also true that BJP state governments are not immune to the consequences of fulfilling populist promises. In June 2017, when the Devendra Fadnavis government in Maharashtra was forced to announce a farm loan waiver amounting to Rs 34,000 crore, he candidly acknowledged, “We will have no option but to drastically cut expenditure on key projects.” Fadnavis even had the courage to raise an important question: who can guarantee that loan waivers would prevent farmers’ suicides? He backed this with data showing that despite the farm loan waiver announced by the Congress-led UPA government in 2008, over 16,000 farmers committed suicide in the following years. Unfortunately, electoral compulsions often force even sensible leaders to adopt measures they understand to be temporary and ineffective in addressing systemic challenges.
The fiscal disaster is just one part of the problem. Indiscriminate giveaways also violate the fundamental principle of fairness. Taxpayers can understand and accept the money spent on empowering citizens through investments in education or health, but how do you justify free cash transfers or something like the distribution of washing machines as fair? In October 2022, Narendra Modi said that when taxpayers’ money is used to distribute “revadis”, it makes them very unhappy. He also shared that many taxpayers had written to him about this concern, and he was glad to see that a significant section of the society is opposed to the freebies culture. When taxpayers, mainly from the middle and upper-middle classes, complain about rising taxes, it might not just be about the rates or slabs. It might also be reflecting the growing resentment that their taxes are being siphoned off to support handouts. This may be the reason why the middle class is becoming increasingly attracted to their own share of freebies, such as free electricity and bus rides. After all, why should they be left out? Eventually, even states like Gujarat, which have so far resisted the temptation of the votes-for-freebies culture, may start to develop similar sentiments: Why not us?
This brings me to the most critical consequence of the freebies culture. It promotes and perpetuates a “muftkhor” mindset and entrenches the “mai-baap” equation with the government—something Prime Minister Modi has worked tirelessly to dismantle. With 80 crore people receiving free rations and an increasing section of the population benefiting from other freebies, including cash transfers, the nation risks fostering a dependency on doles. This will disincentivise labour force participation, creating a major obstacle to initiatives like Make in India and, by extension, the broader India growth story. Let us not forget that the cultural ethos of this land is to reap the fruits of one’s own labour. A shift from traditional values and a decline in moral integrity is how civilisations gradually decline. It remains inexplicable why the BJP, while striving to position India as a civilisation-state, is indulging in something that undermines its larger vision.
The BJP could counter that it is important to remain in power to actualise NaMo’s vision. This is hard to disagree with, and that is why many of his long-time supporters overlook decisions that contradict his convictions, viewing them as necessary evils in dealing with political realities and entrenched entitlement mindsets. Also, while the Modi government has its own “revadi” distribution, like the cash transfer to farmers, it has never lost focus on empowerment. For example, the BJP manifesto for the general elections was focused on empowering farmers through enabling policies, support infrastructure development, and convergence of agriculture and technology. Having said that, it is the responsibility of a visionary leader to ensure his party does not become a part of irresponsible populism. The double-engine BJP governments are expected to propel the India story forward, not derail it by opting for the easy route of giveaways like the Opposition. Especially so, when the party has strong winning prospects without relying on such tactics and when these freebies directly conflict with its broader goals of economic growth and national development.
Inexplicably, Narendra Modi is allowing the BJP to step back from a position of strength built on his government’s decade-long record, and instead play into the Opposition’s strategy of offering excessive doles that harm both the economic stability and moral fabric of the nation, knowing well that once a gravy train starts in India, there is no stopping it.
As Gujarat’s Chief Minister, NaMo fought the 2007 elections on an unprecedented development plank, so confident about his government’s work that he took the bold step of cracking down on power theft by farmers even in an election year. In 2014, the BJP under Narendra Modi’s leadership won a huge mandate by focusing on good governance and development. More recently, the Modi government took a bold step by not offering dramatic sops in the interim budget ahead of the 2024 general elections. The setback in 2024 was not due to the “khatakhat” offered by the Congress-led Opposition alliance, but rather a result of multi-level failures within the BJP-RSS machinery. It should not cause Narendra Modi to lose faith in his own track record of winning elections based on scam-free good governance and “vikas”. He must not let the BJP shift away from his stated focus on empowerment over entitlement and his vision of a developed nation by 2047.
Narendra Modi’s undefeated political journey is also a testament to the fact that the people of India are willing to look beyond narrow self-interests and embrace the bigger picture if a leader convinces them. For example, NaMo’s Give-It-Up campaign saw over 10 million people voluntarily surrendering their LPG subsidy. Given the connect he enjoys with people and given the credibility he has built based on his government’s work, it is not impossible for him to convince even the poorest. As a master communicator, he can easily convey that the Rs 60,000 crores his government transfers to farmers every year could instead buy one-two squadrons of fighter jets for the Indian Air Force. He can point out that the farm loan waivers offered by BJP-led Maharashtra were three times the annual budget of ISRO, or that the Rs 50,000 crore freebies budget in Congress-led Karnataka could cover both the annual budget of DRDO and the cost of the 889-km Char Dham all-weather connectivity project.
If there is one leader in India who can steer the nation away from this disastrous freebie mentality, it is Narendra Modi. For reasons best known to him, he is allowing the BJP to undermine his efforts to transform mindsets—efforts that, though long-term, have already yielded visible results and have the potential to make India a global leader. When it comes to the culture of freebies, it is high time for NaMo to call on his party and the people of India to GIVE IT-UP.
* Semu Bhatt is a strategic adviser, author, and founder of FuturisIndia.