Don't burden DISCOMs, make budgetary provision for freebies: Sitharaman

New Delhi [India], August 26 : Amid the row over pre-poll promises of freebies by political parties to capture power, Union Finance Minister Nirmala Sitharaman on Friday said that political parties making promises prior to elections should make budgetary provisions to take care of expenses and avoid burdening other entities.
Speaking at an event, Sitharaman said, "It is an important issue that India should debate and all of us have to join the conversation (on freebies). The first thing is all of us do recognise that there is an issue. Our government is very conscious of what constitutes freebies. It is one thing to empower people and ensure to provide all kinds of assistance so that they come up out of that mire and be able to do their own afterwards."
"But it is a totally different thing when you talk about it in the sense of entitlement. If a promise has been made to the people, let us say at the time of the election because you are looking at a quid pro quo. You should, as a responsible party assume after you come to power make sure a budget for it. And that payment should go through as a budgetary provided payment. For say, if you wish to give free electricity, make it a provision that a number of units to that many numbers of people will cost that much and that amount is provided for your budget and that goes to the DISCOMs and that goes to the GenCos. It should go. Your promise of a freebie cannot be a burden to somebody else."
She said due to an absence of budgetary provision for free electricity, no payments are being made at the time or even no payments are being made at all.
"You end up shifting the burden to the DISCOM which is not gone to the elections. The DISCOMs have not asked for the votes. But they are being burdened by it. Why should they? Do they have the power to stop continuing the supply? And similarly the GenCos. If you made a promise, make a provision and let the Assembly or Parliament pass it. It cannot just be I have made the promise, I come to power but God knows who is going to pay," stated the Minister.
Sitharaman's remarks came against the backdrop when the Bharatiya Janata Party (BJP) and Opposition parties especially Aam Aadmi Party (AAP) have locked horns over the issue of freebies.
Meanwhile, the Supreme Court on Friday referred the freebies case to a three-judge bench while saying that the issue of freebies promised by the political parties during election campaigns requires extensive debate.
The top court's order came on a batch of pleas against freebies promised by political parties.
Earlier, the top court had asked the Centre why it cannot call for an all-party meeting to determine issues relating to the promise of freebies during election campaigns.
While acknowledging the complex nature of the issue, CJI Ramana had said that the intention of the court was to initiate a wider public debate on the issue, and it is for that purpose the constitution of an expert body was mooted.
During the previous hearing, the apex court said that the issue concerning freebies is complex and there is a need to draw a distinction between welfare schemes and other promises that are made by political parties before elections.
Political parties like Aam Aadmi Party, Congress and Dravida Munnetra Kazhagam (DMK) have sought to intervene in the matter and opposed the plea.
AAP had filed an application stating that electoral promises such as free water, free electricity, and free transport are not 'freebies' but these schemes are absolutely essential in an unequal society.
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