Promises on freebies should be made while keeping state’s financial health in mind: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman addressed the concern of freebies being provided or promised by several parties and states to win elections.

The Minister said that the promises have to be made keeping in mind the financial health of the state and there has to be full transparency about it. She explained that if a party or a state is giving a freebie, then actually, one should show that in the Budget.

She said, “For example, if you are promising free electricity to farmers, then you should take out the expenditure incurred and also reflect the same in the Budget. In this manner, it will not remain a freebie because if the Budget supports such a promise laid down by the government, then it should definitely provide for it, but to a limit.”

The minister pointed out that there are certain states which are making such promises, even providing free electricity but the payment is not being made to the generating companies. Nirmala Sitharaman will present the Union Budget for 2023-24 in the Lok Sabha on February 1 amid expectations of bringing changes and reforms to various sectors and also the government’s decision on the income tax limit.