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Context
Competitive populism is on the rise in a number of Indian states, which begs the questions regarding the MSP's sanctity and the policies' long-term financial viability.
Competitive Populism and the NFSA
· NFSA Continuity: Thirty-five crore Indians received subsidized food grains through the UPA's NFSA, 2013.
· Competitive Populism in Chhattisgarh: Congress gives farmers more money for paddy than the minimum support price (MSP), casting doubt on the MSP's ethics and long-term viability.
· Shift toward Short-Term Benefits: Freebies are preferred by governments over long-term investments in healthcare, agriculture, and education, which is a reflection of a more serious political economy problem.
Fiscal Viability & MSP
· MSP sanctity: Chhattisgarh gives paddy farmers much more money than MSP. Concerns regarding equity for farmers in other states are raised by this.
· The challenge of fiscal sustainability arises when rice is sourced at high marginal supply prices and given away at no cost.
· Neglect of Vital Sectors: Short-term gains often take precedence over investments in public education, healthcare, irrigation, and agricultural research.
Concerns
· Voters that engage in transactional voting favor short-term gains over long-term progress, fostering a culture of expediency in politics.
· Strategic planning is necessary because long-term investments and freebies must be balanced by governments to promote sustainable growth and development.
· Path ahead: Investing in winning the public's trust and votes—rather than giving out freebies in large quantities in an attempt to buy votes—is urgently needed.
LTX Mains Question
Q. Discuss the problems with short-termist policies and competitive populism in Indian government. How can a well-rounded strategy be implemented to guarantee sustainable development?
{{Mounica Sukhavasi}}