Relevance for UPSC: GS Paper II (Governance & Public Policy) 

Elections are meant to celebrate democracy — yet in India, they often turn into auctions of promises, where fiscal sense becomes the first casualty. The 2025 Bihar Assembly election epitomizes this phenomenon. Political parties have announced schemes worth over ₹8 lakh crore, more than three times Bihar’s annual state budget. While such promises appeal emotionally to voters, they raise serious questions about sustainability, governance, and the future of welfare politics.

The Rise of Competitive Populism

Barely into the campaign, parties have rolled out a flood of promises:

• ₹10,000 transfers to 75 lakh women.
• ₹2,500 monthly allowances to women for five years.
• 200 units of free electricity per household.
• 1 crore new jobs and increased pensions for senior citizens.

These schemes blur the line between welfare and vote-buying. When welfare is reduced to cash handouts before polls, it transforms from a developmental tool into an electoral instrument — what experts call “competitive populism.”

The Fiscal and Ethical Problem

Bihar’s financial reality makes these promises deeply problematic. The state’s debt-to-GSDP ratio is among the highest in India. The Reserve Bank of India has already warned that free electricity, farm waivers, and cash doles could push states like Bihar toward fiscal distress.

Moreover, these promises undermine the ethical use of public money. Welfare, when delivered as a constitutional right (education, health, pensions, or food security), empowers people and builds human capital. But election-time “freebies” are short-term cash lures that erode long-term state capacity.

Freebies vs Welfare: The Constitutional Context

The Supreme Court has previously held that promising freebies cannot be automatically termed “corrupt practices” under the Representation of the People Act, 1951 — yet it also warned that such acts distort the level playing field.

A clear distinction must be drawn between:

• Constitutional welfare: Long-term social security schemes like MGNREGA, PM-Kisan, and PM-Awas Yojana, which aim to reduce inequality.
  
• Electoral freebies: Temporary cash or material benefits promised just before elections, without fiscal backing or long-term development purpose.
  

While welfare creates capability, freebies create dependency.

Bihar’s Aspirational Reality

Bihar today has one of the youngest populations in India — with over 50% of its citizens under 25 years. Its median age is 23, compared to India’s average of 28. The state’s youth need skills, jobs, and industrial growth, not sporadic transfers that fail to create productive opportunities.

Sectors such as construction, manufacturing, and services are expanding — but without proper skilling and private investment, this growth cannot translate into quality employment. Instead of cash doles, Bihar’s policies must focus on industrial training, infrastructure, digital literacy, and women’s workforce participation.

A Way Forward — Honest Welfare and Fiscal Prudence

For India — and Bihar in particular — the debate must shift from “more welfare versus less welfare” to “honest welfare versus reckless freebies.”

An honest welfare state should:

1. Link welfare to capability creation — education, skilling, healthcare, and sustainable livelihoods.
   
2. Ensure fiscal responsibility — every rupee spent should strengthen long-term public investment.
   
3. Be transparent and rule-based — so that social benefits reach citizens through laws, not election promises.
   
4. Encourage citizen accountability — empowering people to demand better governance, not more doles.
   

True welfare policies empower; they don’t entrap. Bihar’s development trajectory must align with structural reforms, industrialisation, and governance that fuels opportunity rather than dependency.

Important Terms

1. Freebies: Election-time promises of cash, goods, or services meant to attract voters without structural policy design.
   
2. Fiscal Deficit: The gap between a government’s total expenditure and its revenue, excluding borrowings.
   
3. Vote Bank Politics: Electoral strategy where benefits are directed toward specific groups to secure votes.
   
4. Capability Approach: Welfare philosophy that focuses on expanding people’s real freedoms and abilities, not just their incomes.
   
5. Fiscal Responsibility: Principle of managing public finances prudently to ensure sustainability for future generations.
   
6. Competitive Populism: The race among political parties to outbid one another with extravagant, unsustainable promises.
   

Key Takeaways

• Bihar’s election season reflects the weaponisation of welfare, where promises outweigh fiscal logic.
  
• Welfare must be redefined as empowerment, not as a political reward.
  
• Fiscal prudence and governance reform are essential to secure genuine, sustainable development.
  
• Honest welfare policies invest in human capital — the strongest foundation for any democracy.
  

UPSC Mains Question:
Discuss how the growing culture of pre-election freebies impacts governance, fiscal stability, and democratic accountability in India. Suggest mechanisms to ensure responsible welfare delivery.

One-Line Wrap:
Bihar doesn’t need handouts — it needs honest welfare that empowers its people, not politics that purchases their hope.