'If we end up distributing wealth...': Startup founder warns freebie culture pushing India to the brink

Finfluencer and Wisdom Hatch founder Akshat Shrivastava is raising alarm over India’s growing freebie culture, warning that it could lead to a fiscal disaster.

Shrivastava, in a post on X, draws a compelling comparison to the United States: while the US manages a $36 trillion debt with interest payments consuming 22% of revenues, India’s ₹180 lakh crore debt requires 40% of its revenues to service—nearly double the US burden.

Despite this stark disparity, he cautions, “We continue to reward freeloaders with new schemes each day.”

The warning comes at a time when political parties are doubling down on populist promises. In Delhi, Chief Minister Arvind Kejriwal’s Aam Aadmi Party (AAP) has unveiled new schemes, including ₹18,000 monthly allowances for priests and ₹2,100 for women under the “Mukhyamantri Mahila Samman Yojana.”

Free healthcare for senior citizens has also been promised under the “Sanjeevani Yojana.” These announcements have drawn criticism from the opposition but follow a long-standing trend of freebie politics.

The phenomenon spans party lines. Ahead of elections, the BJP and Congress have similarly leaned on populist measures. In Maharashtra, the BJP-led coalition pledged ₹1,500 monthly allowances for women, while Congress vowed to double the amount if elected.

Punjab’s promise of 300 free electricity units has led to financial strain, with collection efficiency dropping drastically. Himachal Pradesh is struggling under the weight of reinstating the Old Pension Scheme, borrowing heavily just to stay afloat.

Economists have long cautioned against such practices. N.K. Singh, chairman of the 15th Finance Commission, has criticized these giveaways as a “passport to fiscal disaster,” differentiating them from subsidies that generate long-term benefits, like education and healthcare. Prime Minister Narendra Modi, too, has called electoral freebies a dangerous trend, urging voters to prioritize developmental initiatives over short-term handouts.

The Reserve Bank of India echoed these concerns in its recent state finances report, warning that rising subsidies are crowding out investments in critical sectors like infrastructure, health, and education—areas essential for sustainable economic growth.