Effects of Freebies on The Indian Economy

The term “freebies”, popularly called revdi in Indian political discourse, is used for goods, cash transfers, loan waivers or services provided by governments, often around elections. There is no universally accepted legal definition, and some such promises are also funded through regular budgets. This paper studies how these schemes affect India’s fiscal health, growth and social equity, using data from the Reserve Bank of India (RBI), PRS Legislative Research, the Comptroller and Auditor General (CAG) and state budget documents. Freebies sit at an uneasy junction of economics and democracy. Well-designed transfers can relieve acute distress, while recurring subsidies that grow faster than revenue can reduce the fiscal space available for capital expenditure. This project aims for a balanced, evidence-based assessment rather than a partisan verdict.