The NITI Aayog has raised concerns about the growing trend of offering freebies by state governments, especially before elections, warning that this can lead to fiscal instability. While these measures may seem beneficial in the short term, they can burden state finances, hinder critical investments in infrastructure, education, and healthcare, and jeopardize long-term development priorities. The report highlights the need for states to strike a balance between welfare spending and financial discipline to avoid mounting debts and economic derailment. The challenge lies in balancing electoral promises with economic prudence, as states compete to win elections while ensuring long-term economic stability.
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