New Delhi, Agency. Experts say that freebies schemes run in a careless manner can have an adverse effect on the economy. The latest economic situation in Sri Lanka is a hallmark of this. He also said that it is not only necessary to define Rewari culture but also how it is different from the funds spent in welfare schemes.
Recently, the Supreme Court had said that distributing Revdi at the cost of taxpayers’ money can push the country towards bankruptcy. Pramod Bhasin, chairman of economic think tank ICRIER, said most politicians make such announcements due to political compulsions. If these are banned then it will be a welcome step, but the final decision will be taken by the elected representative.
He also stressed on the need to define Rewari culture. Echoing similar views, Institute for Studies in Industrial Development (ISID) director Nagesh Kumar said state governments have to be responsible on the issue of fiscal management. He said that the free schemes announced by the state governments can have a bad effect on the economy of the state.
The latest example is that of Sri Lanka, which shows that fiscal indiscipline always leads to disaster. NR Bhanumurthy, Vice Chancellor, BR Ambedkar School of Economics (Base), said any policy intervention that does not ensure a net increase in production and productivity over the medium to long term can be considered as rewari.
He has also said that if the announcement of such announcements continues, then the already deteriorating economy in many states may worsen. On the current economic situation of the country, Bhasin said that India’s position is relatively better amid the fear of recession in the world.
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