An economic impact assessment is necessary before distribution of freebies, the Supreme Court has been told by a petitioner who has sought constitution of a committee of experts to examine the exercise without adequacy of budgetary provisions.
It has been argued in a PIL filed by advocate Ashwini Upadhyay seeking irrational free-of-cost action against political parties.
Senior advocate Vijay Hansaria, appearing for the petitioner, submitted that the two apex economic bodies of the country have expressed concern over the long-term impact on free distribution by the states without proper financial and budgetary management.
“It is submitted that the State Governments are borrowing money from the Government of India without complying with the requirements of Articles 293(3) and (4) even when the loan is outstanding. It is necessary to strictly enforce these provisions in which the ‘States’ The system of credit rating is being introduced to provide credit facilities to the government,” said the pleas filed through advocate Ashwini Kumar Dubey.
The petitioner has sought constitution of a committee of experts to examine the practice of making electoral commitments involving financial resources (free gifts) without adequacy of budgetary provisions and to suggest remedial measures;
It has also sought formulation of a comprehensive policy to reduce the debt to gross state domestic product (GDP) ratio of states and suggest institutional mechanisms to monitor and foresee early signs of severely strained finances of states.