Economic Survey Warns on Freebies, Backs Brazil Model | UPSC | Current Affairs | Drishti IAS

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The Economic Survey 2025–26 has raised serious concerns over the unchecked rise of freebies announced by State governments, warning that they are straining public finances, widening fiscal deficits, and crowding out spending on infrastructure and human capital. The Survey argues that persistent freebie culture weakens long-term economic growth by diverting scarce resources from productive investments.
As a reform pathway, the Survey suggests adopting outcome-linked and time-bound welfare models, citing Brazil’s Bolsa Família as a reference. Such schemes focus on targeted support, conditional transfers, and measurable social outcomes rather than open-ended subsidies.
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