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Supreme Court Questions Blanket Freebie Schemes by States The Supreme Court of India on Thursday delivered strong remarks against the growing "freebies culture" across states, cautioning that indiscriminate distribution of free goods and services could seriously undermine Indias economic developmen
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FAQ :
The Supreme Court is concerned that the indiscriminate distribution of free goods and services by states could seriously undermine India's economic development and fiscal stability.
The court was hearing a plea challenging Rule 23 of the Electricity (Amendment) Rules, 2024, which restricts blanket subsidies and requires cost-reflective electricity tariffs.
No, the court clarified that targeted welfare measures aimed at economically weaker sections are justified. However, extending benefits universally without assessing financial capacity is a concern.
The court noted that these schemes can strain public finances, potentially leading to revenue deficits, and may come at the cost of infrastructure development and job creation.
Chief Justice Surya Kant remarked that several states appear focused primarily on paying salaries and distributing largesse, leaving limited fiscal space for long-term nation-building initiatives.
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