The West Bengal government’s last full budget before state polls proposed free electricity for quarterly consumption of up to 75 units. What’s the economics of freebies? There is no such thing as a freebie in economics because ultimately somebody has to bear the cost of the supposedly free giveaways. It offers free treatment, medicines and test facilities in mohalla clinics and free surgeries at empanelled hospitals. Free power and water up to certain levels of consumption act as incentives for devising techniques of meter tampering and theft.

Source: Mint February 17, 2020 17:26 UTC