DNA Exclusive: Analysis of the 'Economics' behind freebies announced by political parties

In a book titled 'There is no such thing as a Free Lunch'  Nobel Prize-winning economist Milton Friedman wrote that nothing is available for free. It has to be paid if not today then tomorrow and if not tomorrow then the day next to it. The culture of distributing freebies is going on in full swing in the country and the Election Commission has made an important intervention in this matter. The Election Commission of India on Tuesday wrote to political parties for providing authentic information to the voters to assess the financial viability of their election promises and also sought their views on the issue.

In today's DNA, Zee News' Rohit Ranjan will analyse the economics behind the freebies culture in Indian politics.

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Amid the debate on these freebies going on in Parliament and the Supreme Court, the Election Commission has instructed all political parties and asked them to inform the voters about the financial viability of their election promises.

All governments and political parties will have to make public information related to the finance of their free schemes announced by them.

These are several points that are mentioned in the EC circular sent to these political parties. The circular asks parties to mention Which section of the society will be given the benefit of the free scheme?

What will be the economic consequences of the free scheme promised?

What will be the sources of funding for the free scheme?

And the most important point is that political parties will have to tell in what ways they will raise funds to fulfil the free election promise.

Apart from this, it will also have to be told what will impact the economy of the state or country on the implementation of the free scheme.

This decision of the Election Commission is important because it will not allow political parties to make hollow promises in the elections. Voters will also be able to assess how practical the promises of free schemes are actually.