RBI’s warned the states regarding providing free Revdi, said stop or else you will be ruined
New Delhi: Before the elections time, the various parties of the country used to make many populist promises with normal people. The trend of free Revdi is increasing day by day in our country. The banking sector regulator Reserve Bank of India has expressed concern over the free Revdi provided by the state governments such as free electricity water, free bus rides, loan waiver of farmers and giving money to women every month on the name of pension scheme.
RBI Fear about Free Government Scheme
RBI has released a report regarding this, on the basis of which it has been found that these populist announcements can have a profound impact on the country’s economy for a long run.
RBI Advise To State Government on Free Scheme
The Reserve Bank of India on Friday provided a report and its title States as Finance: Study of Budgets of 2024-25. On the behalf of this report, RBI has said that many states have declared loan waiver to farmers to win the elections for their party. Apart from this, there are many states in the country which are giving free electricity for both agriculture and domestic use.
Impact of Freebies Cultural on Indian Society And Policy
According to RBI, free transport facility is also being announced in many states. Apart from this, in some big states like Maharashtra, Madhya Pradesh and Jharkhand, some minimum amount is being given to women every month on the name of pension.
RBI’s Advice to the states
RBI has said that in its report that this type of expenditure by the states can affect the development of major capacities like social and economic infrastructure. The announcement of such election promises can directly affect the country’s economy in long time. The country’s central bank RBI has described the burden of subsidy on the state treasury as a big threat to the nation due to the increased expenditure due to the schemes like free rewadi.
RBI has asked the states to control their subsidy expenditure and make it rational. This will ensure that there is no shortage of money for the expenditure to be made on the development of social and economic infrastructure.
Race of free rewadi scheme for electoral victory
In fact, in the last year, parties are making populist promises on a large scale to win the assembly elections in the various states. Among these populist schemes, the schemes offers to women are at the forefront.