The irresponsible financial policies and populist measures may give political results in the short term but extract a great social and economic price in the long term. It is a matter of great concern, a fact, Indian voters ignore and pay a hefty price later. Those who suffer the consequences the most are often the poorest and the most vulnerable.

In India, it is in fact an undemocratic mean to gain public support. Populist measures shatters the hopes of a shift to market-driven policies and are not a long term sustainable solution. Also specific forms of individual assistance may end up satisfying few, and even that only partially, while leaving the large majority dissatisfied. Further, the scarce resources and huge demand does not benefit anybody, rather put extra pressure on states. Focus should be on creating infrastructure that improves the productivity and living standards of people, encouraging further investment, providing jobs and expanding economic and commercial opportunities. Same goes with the subsidy which encourages inefficiency by relying more in the subsidy money that offered by the governments and do not address the real issues like increasing incomes of the poor. These generally lead to fiscal deficit, thereby affecting growth prospects of state. These schemes also act as a tool of diversion from real issues, and suppress the real issues in the name of freebies.

Prime Minister Narendra Modi recently said that he has urged state governments to be conscious about financial discipline. “By 2047, I am sure that our country will be among the developed countries. Our economy will be even more inclusive and innovative. Many countries have been watching our growth story very closely and are convinced that this progress is not an accident but is happening as a result of a clear, action-oriented roadmap of ‘Reform, Perform, Transform’, he said.

But his own government has been offering so many freebies. It is high time he should follow first and stop those measures. It is always trustworthy if one does something first before suggesting others.

About the author: IE&M Team
IE&M Team
Indian Economy & Market is an Indian media and information platform producing data-backed news and analysis on all the vital elements at the intersection of the economy, stock markets, mutual fund, insurance, commodities, currency, technology, startups and business.

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