The issue of welfare measures versus freebies needs a rethink and the Supreme Court panel should define limits on how much states can spend on welfare schemes, SBI Research said in a note Friday.
SBI economists argued that, at present, there is no clear distinction between freebies and welfare measures, but the issue needed a rethink.
“Sometimes freebies like free bicycle to girl child, free breakfast to school children etc. are services that build up social infrastructure,” said the SBI note. “The SC panel should fix a band, say 1% of GSDP or 1% of state own tax collections or 1% of state revenue expenditure for these welfare schemes of the states,” the note argued, stating that it would help to implement welfare schemes properly.
