Southern States Borrow Heavily to Fund Freebies While North Shows Restraint
-
Southern states like Andhra Pradesh, Telangana, Tamil Nadu, and Kerala borrowed significantly more than their original estimates to fund freebies and welfare schemes.
-
Karnataka was the only Southern state that did not borrow more than its estimate.
-
In contrast, North Indian states like UP, Gujarat, and West Bengal borrowed less than their estimates.
-
The competition between political parties to promise more freebies and welfare schemes is causing states to overspend.
-
If this freebies trend in the South spreads to North India as well, it could burden the central government and force higher taxes nationwide.