Bhubaneswar: Several top bureaucrats in India have warned that the announcements of freebies in several states may lead to financial crisis and the country may end up in the same situation as cash-strapped Sri Lanka or Greece.
As reported by the Times of India, during a nearly four-hour meeting with Prime Minister Narendra Modi on Saturday, several top bureaucrats flagged their concerns over populist schemes and freebies announced by political parties during assembly elections.
The meeting was also attended by National Security Advisor Ajit Doval, Principal Secretary to Prime Minister PK Mishra and Cabinet Secretary Rajiv Gauba along with other top bureaucrats of the Union government.
Some of the secretaries said that the announcements and schemes in several states are economically unsustainable and there was a need to persuade them to take a balanced call, weighing the political exigencies with the fiscal health.
Announcements made by state governments such as Punjab, Delhi, Telangana, Andhra Pradesh, and West Bengal are unsustainable, and some solutions need to be found. Several political parties are offering free power, burdening the state exchequer, as such doles must be provided for in the Budget. It also limits their ability to allocate more funds for crucial social sectors such as health and education, the officials added.
