Impact of Freebies on Economic Growth and Social Development

Abstract

Freebies (free cash and free facilities) has a very long history, but it became a major concern since last decade and specially after 2021. Some people think these are necessary for the poor, but experts warn that this can destroy the economy. This research paper looks at the histoical, constitutional, societal, and economic effects of freebies using new data and court observations. Free cash schemes like Ladli Behna, Ladki Bahin, Maiyan Samman, Subhadra is a new challenge for the society, for the government, for the administration and many more. Every election in India introduces new schemes like this and creates a burden on the treasury. It is not just a financial challenge. Gradually it is also causing social, industrial, developmental, and some other challenges. These schemes are aiming to enhance their social and economic well-being. While such welfare measures offer short-term relief and promote temporary empowerment, they also raise concerns about fiscal sustainability and economic dependency. This study investigates the economic and social implications of freebies through a focused analysis of LBY. Using content analysis of news articles, reports, and editorials from Dainik Bhaskar and Free Press Journal. Heavy fiscal burden along with borrowing pressures, reduced infrastructure investment, and increased the beneficiary dependency. The study concludes that while LBY contributes positively in short term, but it creates long-term fiscal challenges that may affect nation in multiple ways.