Archive · 30 Nov 2025
Ex-RBI Governor Warns Against Freebie Culture in Elections
A former head of the Reserve Bank of India, Mr. Subbarao, has warned that giving away free money and promises during elections might help politicians win, but it's not good for the country.
He says that in the recent Bihar elections, different political groups promised a lot of money and jobs, but these promises are not realistic and could cause big financial problems later.
He explained that when everyone gives freebies, it becomes like a race where no one really wins because the money is borrowed, and future generations will have to pay for it.
He also said that this makes it hard for governments to focus on important things like creating jobs and improving education.
He suggested that there should be rules to control these freebies so that the country can be stronger in the long run.
Former RBI Governor Duvvuri Subbarao warned against the politics of competitive handouts, stating that freebies may win elections but won't build nations.
During the Bihar election, the NDA transferred Rs 10,000 to 1.2 crore women, while the opposition promised Rs 30,000 to every woman and a government job for every household.
Subbarao argued that freebies cancel each other out and that governments elected on such promises struggle to deliver them, leading to fiscal problems in states like Andhra Pradesh, Telangana, Maharashtra, and Karnataka.
He criticized the borrowing to finance these giveaways, pushing today's consumption burden to tomorrow's taxpayers, and noted the erosion of democratic institutions meant to restrain fiscal adventurism.
Subbarao called for a national code of conduct on handouts to prescribe spending limits, distribution timelines, and require parties to indicate funding sources, emphasizing the need to restore honesty and accountability to fiscal politics.
- Who
- Former Reserve Bank of India Governor Duvvuri Subbarao
- What
- Warned against the politics of competitive handouts and freebie culture in elections
- When
- During the Bihar election campaign
- Where
- India
- Why
- To highlight the fiscal irresponsibility and long-term economic consequences of election freebies
- Former RBI Governor
- Duvvuri Subbarao
- Article Published In
- The Times of India
- NDA Transfer Amount
- Rs 10,000
- NDA Transfer Recipients
- 1.2 crore women
- Mahagathbandhan Promise
- Rs 30,000 to every woman and a government job for every household
- States Struggling with Freebies
- Andhra Pradesh, Telangana, Maharashtra, Karnataka
- Subbarao's Tenure as RBI Governor
- September 2008 to September 2013