In what ways can governments distinguish between genuine welfare measures and unsustainable freebies?
The Supreme Court has said that 'freebies' are different from public welfare investments. I am curious about the criteria or principles that can help policymakers make this distinction, and the possible long-term impacts on society and the economy.
Governments often introduce various schemes to support citizens, but it is important to differentiate between genuine welfare measures and unsustainable freebies. This distinction is crucial for ensuring responsible fiscal management and promoting long-term development rather than short-term political gains.
- Purpose and Targeting: Welfare measures are designed to address specific social or economic needs (e.g., health, education, nutrition) and are targeted towards vulnerable sections. Freebies are often universal or poorly targeted, lacking clear socio-economic objectives.
- Long-term Impact: Genuine welfare schemes create assets, build human capital, or empower beneficiaries (e.g., scholarships, skill training, infrastructure). Freebies generally provide immediate consumption benefits without contributing to long-term development (e.g., free TVs, cash handouts without conditions).
- Fiscal Sustainability: Welfare measures are planned with budgetary discipline and are sustainable within the government’s fiscal capacity. Freebies can strain public finances and divert resources from essential services.
- Legal and Constitutional Backing: Welfare measures often have a basis in constitutional directives (like Directive Principles of State Policy) or legal mandates. Freebies may lack such backing and are frequently announced for electoral gains.
- Empowerment vs. Dependency: Welfare schemes aim to make people self-reliant by providing opportunities and support. Freebies risk creating dependency and reducing the incentive to work or improve skills.
- Transparency and Accountability: Genuine welfare programs have clear guidelines, monitoring mechanisms, and measurable outcomes. Freebies may lack transparency and accountability, making them prone to misuse.
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