Elections have been announced, and campaigning has begun. Parties have already released their manifestos including the freebies. Meanwhile, they continue to finalise candidates for each constituency. Full-scale campaigning will follow soon. In reality, however, campaigning has already started. Elections are no longer based on the merits or demerits of individual candidates.
Instead, they revolve around the supreme leader of each party. In that sense, the present Chief Minister of West Bengal was not wrong in saying she is contesting all seats in her state. There is also a larger factor at play not just in Tamil Nadu, but across all states. Tamil Nadu, however, may have led the way. It turned the art of luring voters into a craft.
From Simple Incentives to Freebies
Political parties have used many methods to attract voters over the years. In the early days, the incentives were simple. Parties offered voters a ride to the polling booth and back. One could even view this as an effort to promote democratic participation. Then came the era of alcohol, biryani packets, and cash. That phase, in many ways, still continues. Today, we have entered the era of freebies.
Political parties now promise a wide range of benefits. These include household gadgets, domestic animals, and direct cash transfers. Among these, cash transfers have sparked the most intense debate.
The Supreme Court Raises Concerns
About a month ago, the Supreme Court examined this issue. During the hearing, the Court strongly criticised the State. The case involved the Tamil Nadu Power Distribution Corporation Limited, which carries an annual deficit of Rs 50,000 crores.The State had challenged the application of Section 23 of the Electricity (Amendment) Act, 2024.
This provision requires that the gap between tariff revenue and expenditure remain within 3 per cent. The State hesitated to implement even part of this rule. It feared a negative public reaction. In effect, electricity itself has become a freebie.
A Larger Economic Concern
The Court then widened the discussion. It questioned how revenue-deficit states could sustain such large-scale transfers. It also pointed out that governments often shift the burden of these freebies to future generations. This, in turn, comes at the cost of infrastructure development.
However, the Court stopped short of issuing orders. It did not want to interfere with the executive’s role.
The Problem No One Wants to Address
Even so, the Court highlighted a serious issue—one that few want to confront. Subsidies, whether in cash or kind, are justified for the economically weaker sections. However, the current system lacks a scientific method for distribution. Authorities often use ration card categories as the basis. Yet, this system remains highly porous.
Recently, even this limited filter has weakened. As a result, governments now distribute money to almost everyone.
Key Questions on Freebie Culture
This situation raises several important questions. First, why should those who do not need these benefits receive them? Second, are we creating—as the Supreme Court noted in 2025—a class of people who depend permanently on handouts? If so, does this weaken the work culture of a State once known for its discipline and productivity? Third, where does this trend end? Some benefits, such as household goods, education, and healthcare, are clearly justified.
They support essential needs. However, what about schemes that lack such justification? Should we expect even more extravagant promises in the future?
A Warning for the Future
Political parties may be undermining long-term prosperity. Tamil Nadu became a prosperous state through vision, planning, and effective execution. It built a strong ecosystem for growth and revenue generation. However, the current trend tells a different story. Governments now borrow from the future to fund present-day electoral promises. This approach may mark the beginning of a decline. One can only hope that better sense prevails.
This article appeared in Madras Musings–https://madrasmusings.com/vol-35-no-24/freebie-time/
My book, Chennai, A Biography can be ordered-https://sriramv.com/2021/12/27/how-to-buy-autographed-copies-of-chennai-a-biography-from-outstation/20.ece
Very nice thought provoking article. “This approach may mark the beginning of a decline. One can only hope that better sense prevails.” I honestly wish and pray that your last two sentences become true.