Vice President Jagdeep Dhankhar urges National Policy to Regulate Freebies & Standardize Government Spending

New Delhi, March 19, 2025: In a significant address to the Rajya Sabha, Chairman raised concerns over the rising trend of freebies in electoral politics and called for the formulation of a national policy to ensure that government expenditures are utilized in a structured and transparent manner for the larger public interest.

Highlighting the fiscal strain caused by unregulated welfare schemes, the Chairman remarked, “This House needs to deliberate on placatory mechanisms and electoral allurements, often known as freebies. The country grows only when capital expenditure is available, and such practices put an undue burden on future governments.” He further emphasized that successive governments have struggled with the financial consequences of such electoral promises and called for a structured national approach to regulate these practices.

The Chairman also pointed out the disparity in perks and pensions between Members of Parliament (MPs) and Members of Legislative Assemblies (MLAs) across different states. He highlighted how, in some cases, pension variations for former MLAs range from 1 to 10 times depending on the state, leading to a lack of uniformity. “Our Constitution provided for legislatures but did not establish a uniform mechanism. Legislative intervention is necessary to standardize these benefits, which will help politicians, the government, and the executive while ensuring better fiscal discipline,” he added.

Addressing the issue of subsidies, the Chairman advocated for adopting the direct benefit transfer (DBT) model, particularly in the agricultural sector, as practiced in developed nations. Referring to the U.S. farm subsidy model, he noted that although the United States has only one-fifth of India’s farm households, the average income of a U.S. farm household exceeds that of a general U.S. household due to direct and transparent subsidies. He emphasized that adopting a similar direct subsidy mechanism in India would reduce intermediaries and ensure that benefits reach the intended recipients efficiently.

Quoting the Constituent Assembly Debates, the Chairman recalled the remarks of Mr. Sidhwa on the power of Parliament to remove judges. He reflected on the need for caution when erogating power without thorough consideration, warning that as the number of judges increases, the ability to exercise these powers effectively may become impractical.

The Chairman concluded by reiterating the urgent need for a comprehensive national policy to guide government investments, ensuring they are channeled toward sustainable development rather than short-term electoral gains.