Tewari Calls for Constitutional Curb on Pre-Election Cash Transfers Amid Rising Debts

Congress MP Manish Tewari has raised concerns in Lok Sabha regarding the use of cash transfers before elections, suggesting a constitutional amendment to limit this in financially strained governments. He warns that such practices burden the national exchequer and could lead to a financial crisis.

In a striking move during Tuesday's Lok Sabha session, Congress MP Manish Tewari addressed the pressing issue of cash transfer schemes deployed ahead of elections. He criticized the growing trend of governments using financial handouts as an electoral strategy, warning that this could spell economic trouble for the nation.

Tewari demanded an urgent constitutional amendment to halt these cash transfers in states, where the debt-to-GDP ratio exceeds 20 percent. Highlighting the concern, he pointed out that unsustainable borrowings are straining public finances severely, a problem looming over both central and state governments in India.

Citing the latest data, Tewari revealed that 18 of the 28 Indian states have a debt-to-GDP ratio of over 30 percent for the fiscal year 2023-24. He proposed adding a new article--Article 293A--to the Constitution, restricting governments burdened with debt from issuing cash transfers. Tewari also warned against the potential manipulation of public funds in winning elections and emphasized the looming risk of bankrupting India's democracy.

(With inputs from agencies.)