Comments by "Raju" (@rajx7120) on "PM Modi is an idea that remains vibrant- How BJP seems to be losing faith in it u0026 why it shouldn’t" video.
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BJP did freebies as a last resort. Unlike Congress. The whole demand for freebies increased due to distress caused by pandemic, and economy not recovering in time for the 2024 general elections.
The pandemic hurt the incomes of poorer sections. And BJP instead of doing khatakhat for short-term relief, took up a long-term growth-oriented plan of building logistics and infra, which required more tax money.
Now, this might sound cruel, but this policy prevented hyper-inflation, that rest of the world saw, and is responsible for revival of India's GDP growth today. Because infra spending has GDP multiplier of 3x, whereas freebie has multiplier of 0.95x.
What we needed to do, was farm reforms and labour reforms, that would have created jobs faster, and would have reduced subsidy burden, which could, then have been passed off as tax cuts.
Congress spotted the opportunity to oppose reforms, and peddle khatakhat, because avg person doesn't understand macro-economic effects, of khatakhat, and importance of investments.
BJP has done a deft balancing of politics and economics. And we should also appreciate the deft diplomacy too, that has enabled us to get Russian oil, and also earn from refining it. Despite all the economic shocks, India's budget has only increased. Govt should be lauded for maintaining fiscal space for all our growth oriented policies, and still leave room for a few freebies.
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