Banking service chronicle

 Banking service chronicle

Banking service chronicle published this article page no 2 But it goes against the roots of free and fair election in a democracy and gives rise to several issues. Issues with Freebies: Negative Impact of FreebiesEconomic Issues: Freebies are a huge drain on the state exchequer affecting the fiscal balance and macroeconomic stability of the country. If not checked it can lead to greater risks including state bankruptcy due to high debttoGDP ratio (see image). E.g. o The debttoGDP ratio of Punjab reached 53.3% in 202122 due to highsubsidy burden. ○ Telangana has committed 35% of revenue receipts almost 63% of state’s own tax revenue to finance populist schemes which are centered around freebies.Political Issues: It goes against Article 14 by distorting the level playing field among political parties favoring the party in power over others. It also unduly influences voters leading to shortsightedness in their judgement banking service chronicle monthly magazine subscription. 



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