Every society in the world provides something free of payment, be it drinking water, education or basic healthcare, to its citizens, PTR pointed out. He explained how nations around the world — developed and emerging — also use subsidies to protect the weakest sections of society.
There is very little correlation between a country’s gross domestic product and poverty, PTR said, highlighting how many people in developed countries also rely on food stamps provided by their governments to get by.
The investment banker-turned-politician compared Tamil Nadu with Gujarat and pointed out how the southern state, known for its freebies, is fundamentally more developed despite having a lower per capita income.
He also talked about the need to plug leakages in the beneficiary schemes and to prevent the system from being gamed.