Indias Supreme Court Forms Expert Committee To Examine Political Freebies

The Supreme Court of India has taken a significant step in addressing the contentious issue of political freebies by deciding to establish an expert committee to examine the impact of such offerings on the economy. On August 3, a bench comprising Chief Justice NV Ramana and Justices Krishna Murari and Hima Kohli initiated the process of forming this expert body, which will include representatives from various stakeholders to study the implications of freebies announced by political parties during elections.

Background of the Supreme Court's Intervention

The Supreme Court's decision comes in response to a Public Interest Litigation (PIL) petition filed by Ashwini Upadhyay, who sought directions to regulate freebies by political parties. The petition argued that political parties often announce freebies to lure voters without adequately considering the impact on public debt and financial stability.

During the hearing, the court asked the Centre, Election Commission, senior advocate and Rajya Sabha MP Kapil Sibal, and the petitioners to submit their suggestions within seven days on the composition of the expert body that will examine how to regulate freebies. The matter has been posted for further hearing on August 11.

Composition of the Proposed Expert Committee

The Supreme Court has suggested that the expert committee should include representatives from diverse stakeholders to ensure a comprehensive examination of the issue. The proposed members would include:

• Central Government representatives
• State Government representatives
• Opposition parties
• Niti Aayog
• Election Commission
• Finance Commission
• Reserve Bank of India (RBI)

This composition reflects the court's intention to gather perspectives from all sides of the debate, including those who support freebies as welfare measures and those who view them as fiscally irresponsible.

Reactions to the Supreme Court's Decision

Legal experts have offered mixed reactions to the Supreme Court's decision to form a committee. Senior counsel Rajeev Dhavan questioned the effectiveness of such an approach, asking "what will be the effect of these freebies on elections" and "how is the committee going to answer that question?"

Most senior law experts and advocates believe that the Supreme Court's decision to form a committee to look into the issue of freebies by political parties is, in effect, "burial by committee." This sentiment suggests that the issue may be delayed indefinitely through the committee formation process without reaching a substantive resolution.

National Herald quoted Supreme Court's Senior Advocate Sanjay Hegde saying, "There is only a committee that is being formed. No report has come yet. The issue of jurisdiction will arise only if the apex court decides to act on the recommendations of the committee. As of now, it seems like it will be a burial by committee."

Debunking Misconceptions About the Committee

Amid various reports and social media discussions, some misconceptions have emerged regarding the nature and powers of the proposed committee. One such claim suggested that India is forming the largest organization of taxpayers in the world that would work as a watchdog, requiring its approval before any government could promises of free electricity, free water, free distribution, or loan waivers.

Fact-checking reveals that this claim is incorrect. While the Supreme Court has recommended a committee comprising several stakeholders to examine matters related to freebies announced by political parties during elections, the apex court has not yet specified the powers and limitations of such a committee. Furthermore, no official reports have indicated that the SC proposed panel will be called or referred to as an all-India organization of taxpayers.

The SC Order copy states, "Keeping in mind the prayers made in these petitions which relate the distribution of freebies by political parties, we are of the considered view that it would be appropriate to constitute an expert body with representatives of all the stakeholders: the beneficiaries, those opposing freebies, Central Government, State Government, opposition parties, Finance Commission, Reserve Bank of India, NITI Aayog, etc, to name a few, to take a holistic and comprehensive view of the matter and making their recommendations."

Historical Context of Freebie Politics in India

The issue of political freebies is not new in India. The Supreme Court had previously addressed this matter in 2013 when it observed that the distribution of freebies is against free and fair elections and violates the electoral process. At that time, the Court directed the Election Commission (EC) to frame appropriate guidelines with reference to freebies.

However, the EC only provided a vague guideline requiring political parties to state their plans for financing the freebies promised. In 2021, the SC again called for an Expert Panel to be constituted comprising all stakeholders to consider this issue, but no concrete action resulted from that directive.

Economic Impact of Political Freebies

Economic experts have expressed concerns about the fiscal impact of political freebies. For instance, it has been reported that guarantees in Punjab worth ₹1.25 lakh crore are driving the already highest indebted State toward bankruptcy, while election guarantees in Karnataka worth ₹62,000 crore (3 percent of GSDP) may have similar consequences.

The role of the Finance Commission (FC) in addressing freebie politics is limited. As a constitutional body primarily responsible for the devolution of federal resources to States, it hardly has the authority, legitimacy, or competence to deal with freebie politics. The 15th Finance Commission was asked to look into this issue and is likely to be referred again to the 16th Finance Commission, which is about to be constituted.

Defining "Freebies" in the Political Context

A significant challenge in addressing political freebies is defining what constitutes a "freebie." The PIL and public discourse have brought the issue into focus, but there is a need for greater clarity. Welfare measures, subsidies, concessions, and sops can all be called freebies depending on the context. What qualifies as a freebie in one state may not be considered as such in another.

For example, a television or a grinding machine may be considered a luxury good or a necessary item depending on the perspective. Bicycles given away by the Bihar government empowered many girls and promoted their education, demonstrating that some freebies can have positive social impacts.

The Election Commission's Position

The Election Commission has declined to be part of the proposed committee on grounds of propriety. This reluctance suggests concerns about the Commission's role in potentially regulating political speech and campaign promises, which could touch on constitutional questions about free expression in the political arena.

Central Government's Stance

The central government has told the court to lay down guidelines to regulate freebies till legislative measures are put in place. This indicates a preference for judicial intervention over immediate legislative action, possibly due to the politically sensitive nature of the issue.

Prime Minister Narendra Modi has criticized the "culture of revadi," meaning freebies, arguing that it hurts public finance. This statement reflects the government's position that unchecked free promises could have detrimental effects on fiscal health.

Potential Solutions and Path Forward

Addressing political freebies presents significant challenges. It would be difficult to restrain political parties from promising freebies during elections. However, some experts suggest that through an amendment in the Representation of the People Act (RPA), the issue could be partially addressed by mandating the following principles:

1. Disclosure of the estimated cost of promised freebies
2. Explanation of how the freebies will be financed
3. Assessment of their long-term fiscal impact

Such transparency requirements could help voters make more informed decisions while still allowing political parties to campaign on their platforms.

Conclusion

The Supreme Court's decision to form an expert committee to examine political freebies represents a significant judicial intervention in a contentious issue that has implications for democratic processes and economic governance in India. The proposed committee, with its diverse representation of stakeholders, aims to take a holistic view of the matter and make recommendations.

However, legal experts remain skeptical about the effectiveness of this approach, with some characterizing it as "burial by committee." The challenge of defining what constitutes a freebie, combined with the difficulty of balancing democratic expression with fiscal responsibility, makes this a complex issue to resolve.

The Election Commission's reluctance to participate and the central government's call for judicial guidelines further illustrate the sensitivity surrounding this issue. As the committee formation process moves forward, the Supreme Court will need to navigate these complexities while respecting constitutional principles of free expression and democratic governance.

Sources

1. SC forming panel to examine issue of freebies by political parties is 'burial by committee': Experts
2. Fact Check: Reality behind SC forming all-India organization of taxpayers to examine freebies
3. SC forming panel to examine issue of freebies by political parties
4. Freebie Politics in India
5. Freebies: A matter between parties and voters