Q.3 How does freebie culture harm the financial health of the states? Analyse the effectiveness of the FRBM Act in dealing with the freebie culture and suggest a way forward. (10 Marks)

Mentor’s Comments-

  • https://www.thehindu.com/opinion/lead/states-freebies-and-the-costs-of-fiscal-profligacy/article65573164.ece
  • In the intro, mention the increasing tendency of the political parties to promise freebies.
  • In the body, mention the purpose of freebies and cases in which government it is necessary. In the next part, mention how states resort to off-budget borrowing to finance these freebies while conforming to the FRBM Act. In the next part suggest an amendment to the FRBM Act for more complete disclosure, imposing condition on the wayward states, the use of the financial emergency provision of the constitution.
  • Conclude by mentioning the need for fiscal discipline in the states.
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chandan mahabaliah
chandan mahabaliah
2 months ago

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2 months ago

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