Freebies Or Better Roads? Arvind Panagariya's Blunt Take Sparks Debate

Citizens must now weigh the cost of ‘freebies’ against the need for better infrastructure, warned economist and 16th Finance Commission Chairman Arvind Panagariya on Thursday. Speaking after a meeting with Goa’s top ministers and officials, Panagariya highlighted the delicate balance between development funding and political priorities in a democracy. Addressing concerns over states allegedly misusing funds meant for infrastructure to provide freebies, he said, “If money is allocated for projects, it should be used for those works.” However, he clarified that elected governments ultimately decide how to utilize such funds. “The Finance Commission can raise issues for macroeconomic stability but cannot dictate state expenditures,” he added. Panagariya placed accountability on voters, urging them to choose between improved public services and cash transfers. “Ultimately, the citizens must decide—better roads, water, and sewerage systems, or freebies in their bank accounts,” he said.

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