Understanding the issue of ‘freedom’

Concerns over ‘free gifts’ in Indian politics have recently been expressed by people in the highest positions of the country. Speaking at the inauguration ceremony of Bundelkhand Expressway (Uttar Pradesh) on July 16, Prime Minister Narendra Modi warned youth not to fall prey to the ‘Rewari culture’ where votes are sought by promising ‘free’. He targeted the opposition parties for giving free gifts and said that it is dangerous and harmful for the development of the country.

A few days later, a bench headed by the Chief Justice of India, NV Ramana, heard a PIL in which the petitioner argued against the promise of ‘irrational freebies’, claiming to distort the electoral process. It is reported that during the hearing, the Chief Justice of India remarked that ‘free gifts’ was a serious issue and asked the central government to take a stand on the need to control declaration of ‘free gifts’ by political parties during election campaigns. asked to take The Court also suggested that the Finance Commission may be involved to look into the matter and propose a solution.

still confused

Discussion on the drawbacks of ‘free gifts’ distributed to the public as a result of election promises is nothing new in India. Although there is often confusion about what a ‘free gift’ is, many services provided by the government to the citizens in fulfillment of their constitutional obligations have also been included in this category. The basic argument is that these are a waste of resources and put a burden on already stressed fiscal resources. In such discussions, ‘freebies’ include not only the free distribution of ‘club goods’ such as TVs and gold chains, but also welfare schemes such as free or subsidized rations under the Public Distribution System (PDS). Work provided through the mid-day meal scheme, supplementary nutrition through anganwadis, and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

food distribution

But can these expenses be treated as ‘free gifts’ by the government, as many commentators do? For example, was the distribution of free food grains during the pandemic that devastated lives and livelihoods at a time when 100 million tonnes of rice and wheat in Food Corporation of India (FCI) godowns was a ‘freebie’? The Prime Minister and members of the Bharatiya Janata Party have repeatedly talked about the government implementing the ‘world’s largest food security program’ by distributing free food grains through the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) to nearly 80 crore ration cardholders. campaign has been launched.

PMGKAY is probably what has kept many people off the brink of starvation during the Novel Coronavirus pandemic. If anything, it can be argued that the coverage under PMGKAY should be expanded to include non-ration card holders as well, as there are many who have been left out of the ration list, but are given subsidy. Free or free food grains are required. Even before the COVID-19 pandemic, there have been studies showing the poverty reduction effect of PDS. The subsidized food grains distributed under the PDS not only contribute to ensuring basic food security, but also act as an implicit income transfer allowing the poor to afford items they could not otherwise afford . Apart from this, PDS also plays an important role in our country where public procurement at Minimum Support Price (MSP) is one of the main means of support to the farmers. PDS allows farmers to make food grains cheaply available to consumers while ensuring remunerative prices.

PDS Coverage, MGNREGA

Since the mid-2000s, PDS became increasingly a political issue, with state governments expanding coverage and lowering prices. Low prices in the PDS had earlier become an election issue in the southern states. Such initiatives were included in the election promises of almost all political parties from the mid-2000s to the late 2000s, including the 2009 general elections. This eventually led to the passing of the National Food Security Act unanimously by Parliament in 2013. Despite its shortcomings, it cannot be denied that PMGKAY and the aid provided during the pandemic would have been impossible if it were not for the NFSA which would have expanded the coverage of PDS to nearly two-thirds of the population. In its absence, very few people would have ration cards with high errors in identifying the poor (as seen in the previous targeted system that divided the population into those above and below the poverty line). Also, exclusion errors are automatically reduced, though not completely eliminated. A universal PDS would get us even closer to this goal.

Other welfare schemes, which are repeatedly maligned as adding to the burden of the ‘subsidy’ of the state, also contribute to human development and protection of people’s basic rights to nutrition, work, etc., essentially without respect. Right to life with For example MGNREGA is another scheme which has been a lifeline for many people during and before the pandemic. At a time when employment opportunities are few, working under MGNREGA can guarantee certain wages; If implemented in the true spirit of the law, it is also demand-based and, therefore, responds as much as is needed.

Similarly, mid-day meals in schools have been proven to increase enrollment and retention in schools and contribute to staving off classroom hunger. Several other schemes such as old age, single women and disabled pensions, community kitchens in urban areas, free uniforms and textbooks for children in government schools, and free health care services play an important role in providing social security and access to basic amenities. rights in our country. In fact, these programs have several shortcomings that demand expansion in coverage, allocation of more resources as well as greater accountability and establishment of mechanisms for grievance redressal.

in perspective

Downplaying these government interventions as ‘free gifts’ highlights elitism in our society, where the poor are seen as unproductive and dependent on donations. Rather, the problem is that these issues are not given enough attention in the political process. In any case, the need of the hour is to create public pressure to make welfare distribution an election issue. Whether eggs will be provided in the mid-day meal programme, how many days’ work will be provided under the employment guarantee scheme, the scheme for access to free medicines, or at what cost subsidized food grains will be provided under the PDS, have been discussed. Positive signs of an electoral democracy serving the needs of the majority. It is important to recognize that most welfare schemes contribute to improving human development outcomes, which also result in higher economic growth in the future. Sometimes, this process gives rise to initiatives that seem ‘useless’ – while these should be discussed, they cannot be completely ruled out.

In any case, how does one define ‘freebie’? The ‘major tax incentive for corporate taxpayers’ results in revenue loss of around ₹1 lakh crore annually. Including all tax exemptions and exemptions including foreign trade and personal income taxes, the revenue foregone each year is more than ₹5 lakh crore. Corporate tax rates are coming down and budget documents show that the effective tax rate (tax-benefit ratio) has declined in 2019-20 with an increase in profits. However, one does not see much pressure in mainstream discussions to justify these concessions. The fact is that small amounts given to the poor by a system that has mostly failed are called ‘freebies’, while the freebies that the rich get all the time through low tax rates and rebates are called ‘incentives’. Nothing but a reflection. Nature of democracy in our country.

Deepa Sinha is a Faculty at Dr BR Ambedkar University Delhi. Views expressed are personal