Top court says indiscriminate largesse may hamper economic development
The Supreme Court of India on Thursday sharply criticised what it described as the growing “freebie culture” across states, observing that indiscriminate distribution of benefits could hamper long-term economic development.
Hearing a plea linked to the Tamil Nadu Power Distribution Corporation Ltd, the bench questioned the rationale behind providing free electricity without distinguishing between those who can afford to pay and those who cannot.
A bench led by Chief Justice Surya Kant, along with Justices Joymalya Bagchi and Vipul M Pancholi, said that while welfare measures for the poor are understandable, blanket giveaways raise concerns about fiscal sustainability.
“Most states in the country are revenue deficit states and yet they are offering such freebies,” the bench observed, adding that economic development could be impacted by such largesse.
Court questions fiscal priorities
The Chief Justice asked whether up to 25 per cent of annual revenue could instead be channelled toward development projects rather than generalised subsidies.
“What kind of culture are we developing in India?” the bench remarked, noting that states appear to be spending primarily on salaries and benefit distribution while development takes a backseat.
Justice Bagchi added that if unemployment or welfare spending is necessary, it should be transparently reflected in budget proposals with clear justifications.
The court emphasised that the issue is not confined to one state but concerns fiscal practices across the country.
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Love this judgement & the judge.