Topic: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes;
3. Maintaining fiscal prudence is crucial for the sustainable development of a developing economy. It involves balancing the need for welfare measures to address social issues with the avoidance of unsustainable freebies that can strain public finances and compromise long-term economic stability. Examine. (250 words)
Difficulty level: Tough
Reference: The Hindu
Why the question:
Competitive populism has been the defining theme of campaigning in the ongoing Assembly elections in five States.
Key Demand of the question:
To distinguish between sustainable welfare policies and short-term populist measures, and discuss the potential consequences of prioritizing immediate political gains over long-term economic stability.
Examine – When asked to ‘Examine’, we must investigate the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.
Structure of the answer:
Begin by giving context of freebies.
First, write about the significance of fiscal discipline in maintaining economic stability, attracting investments, and ensuring long-term growth.
Next, write about the potential consequences of prioritizing short-term political gains over long-term economic stability, including fiscal deficit, inflationary pressures, and reduced government credibility.
Next, write about the genuine welfare measures that empower marginalized sections and unsustainable freebies that strain public finances.
Conclude by writing a balanced way forward.