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New Delhi ∙ The central government has urgently warned against the state governments’ free promises to the population. The Center has made it clear that giving away free gifts occasionally will lead to a major financial crisis. The Center pointed this out at a meeting of chief secretaries chaired by Prime Minister Narendra Modi.
The Center cited examples of states in countries like Sri Lanka and Pakistan that were in severe financial crisis due to uncontrollable borrowing. The Center has directed the general secretaries to provide appropriate guidelines to the ruling political leaders in this regard. The Centre’s warning against promises of freebies comes as the general elections draw closer. In all five recent parliamentary elections, the parties went into the election campaign with promises of freebies.
The meeting discussed the difference between social assistance systems and free programs. The meeting pointed out that things like girls’ education and school transport can be accepted, but things like free drinking water and electricity would burden the state exchequer and be a wrong practice. The Center also asked state governments to improve their revenue streams to implement welfare programs.
English summary:
At third meeting of chief secretaries, Center warns against ‘freebies’
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