Drawbacks of Direct Benefit Transfer and the Freebie Culture in India India’s welfare policies have increasingly shifted towards Direct Benefit Transfers (DBT) and distribution of freebies as tools to reach citizens directly. While both aim to support the poor and ensure inclusive growth , they come with serious drawbacks that threaten fiscal discipline , long-term productivity, and the very spirit of self-reliance. Fiscal Burden on the Government The biggest concern with DBTs and freebies is the rising fiscal pressure they create. Free electricity, loan waivers , cash handouts , and subsidized goods add up to a massive expenditure. When states and the Centre spend excessively on such populist measures , capital investment in infrastructure...
Drawbacks of Direct Benefit Transfer and the Freebie Culture in India India’s welfare policies have increasingly shifted towards Direct Benefit Transfers (DBT) and distribution of freebies as tools to reach citizens directly. While both aim to support the poor and ensure inclusive growth , they come with serious drawbacks that threaten fiscal discipline , long-term productivity, and the very spirit of self-reliance. Fiscal Burden on the Government The biggest concern with DBTs and freebies is the rising fiscal pressure they create. Free electricity, loan waivers , cash handouts , and subsidized goods add up to a massive expenditure. When states and the Centre spend excessively on such populist measures , capital investment in infrastructure...