Economic impact assessment necessary before distributing freebies, Told SC

The Supreme Court asked all stakeholders to think about it and give suggestions so it could form a body to deal with the issue.

A petitioner who appealed for the formation of a committee of experts to examine the practice without adequate budgetary provisions told the Supreme Court that an economic impact assessment is necessary before distributing freebies.

On behalf of the petitioner, senior attorney Vijay Hansaria claimed that the two most important economic bodies in the nation have expressed concern about the long-term effects of freebie distribution by governments without competent fiscal and budgetary management.

On August 3, Supreme court asked stakeholders like the Centre, NITI Aayog, Finance Commission and the RBI, to brainstorm on the issue of freebies announced during elections and put constructive suggestions to combat it.

The Supreme Court asked all stakeholders to think about it and give suggestions so it could form a body to deal with the issue.

The petition submitted before of the assembly elections in five states, including Punjab, said that since such populist methods violate the Constitution, they should be completely prohibited. The petition also demanded that the Election Commission take appropriate deterrent action.

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