SC Questions States' Freebies Culture, Calls for Balanced Welfare

The Bench expressed concern over direct cash transfers and indiscriminate free distribution, saying governments should focus on creating employment opportunities that allow people to earn with dignity and self-respect. File Photo.

SC Questions States’ Freebies Culture, Calls for Balanced Welfare 

The Supreme Court on Thursday criticised the Tamil Nadu government for promising free electricity to all consumers, regardless of financial status, calling it a practice that hampers India’s economic development. The Bench, led by Chief Justice Surya Kant and including Justices Joymalya Bagchi and Vipul M. Pancholi, questioned the timing of such schemes, often announced before elections.

“Why suddenly are these schemes announced near elections? If we keep distributing largesse indiscriminately, it will hinder national development. There must be a balance,” the CJI observed. The court noted that most states run revenue deficits yet continue offering freebies, overlooking essential development needs.

The Bench expressed concern over direct cash transfers and indiscriminate free distribution, saying governments should focus on creating employment opportunities that allow people to earn with dignity and self-respect. “Providing free food, gas, or electricity to everyone discourages work and learning, which is vital for nation-building,” the court remarked.

The justices emphasised that states must prioritise development spending on roads, hospitals, and schools, rather than distributing items for electoral popularity. While assistance to genuinely needy individuals is appropriate, affluent citizens should not benefit from such freebies.

The court issued notices to the Centre and others on a petition by Tamil Nadu Power Distribution Company Ltd challenging Rule 23 of the Electricity Amendment Rules 2024, which mandates cost-reflective tariffs to prevent revenue gaps, except under natural calamities. 

The Supreme Court questioned blanket free electricity, asking why states cover costs for wealthy consumers. The Bench emphasised focusing on the genuinely needy, making budget justifications, and highlighted the distinction between those who can afford electricity and those who cannot, noting the issue affects all states, not just Tamil Nadu.

Source; The Tribune