Poll freebies to hurt long-term growth, say experts
Experts have warned that populist promises, such as cash and travel subsidies, promised by political parties in the lead up to elections in India, could harm long-term growth prospects. C Rangarajan, former RBI governor, suggested enforcing strict fiscal-deficit limits to limit freebies. Former chairman of the National Statistical Commission, Pronab Sen, called for action by the Election Commission against such promises. Meanwhile, M Govinda Rao, a member of the 14th Finance Commission, said that parties focus on short-term rather than long-term benefits.