Supreme Court
NEW DELHI: The Supreme Court on Thursday raised serious concerns over the growing culture of ‘freebies’ across states , warning that indiscriminate distribution of such benefits could hamper economic development and strain state finances. The top court also cautioned states and asked whether such a culture, without drawing a distinction between the haves and the have-nots, would amount to an “appeasing policy.”Hearing a plea by Tamil Nadu Power Distribution Ltd, which plans to provide free electricity to all consumers regardless of their financial status, the court said welfare measures are justified for the poor, but extending them to everyone could weaken development efforts.Why SC flagged freebiesA bench led by Chief Justice India Surya Kant, along with Justices Joymalya Bagchi and Vipul M Pancholi, pointed out that many states already face revenue deficits yet continue to announce large-scale free schemes.“Most of the states in the country are revenue deficit states and yet they are offering such freebies” overlooking development, the bench said.The judges stressed that excessive spending on freebies could slow economic progress and reduce funds available for infrastructure, jobs, and long-term growth. “The economic development of the nation will be hampered by this kind of largesse distribution. Yes, it is the State’s duty to provide, but the ones who are enjoying freebies… is it not something that should be looked at?” Chief Justice of India Surya Kant verbally observed.The CJI also questioned whether states were using their revenue wisely.”States are running into deficit but still giving freebies. See, 25 per cent of the revenue you collect in a year, why can it not be used for the development of the State?”Concern over impact on work culture &financesThe bench warned that indiscriminate distribution of benefits could affect productivity and reduce incentives to work.“What kind of culture are we developing in India? It is understandable that as part of the welfare measure you want to provide to those who are incapable of pay the electricity charges,” the bench asked.“But without drawing a distinction between those who can afford and those who cannot, you start distributing. Will it not amount to an appeasing policy,” the CJI asked.The court also questioned the timing of the Tamil Nadu power firm’s proposal.“The states should work to open avenues for employment. If you start giving free food from morning to evening then free cycle, then free electricity then who will work and then what will happen to the work culture,” the CJI said.JusticeBagchi added that states must properly justify such spending in their budgets.”It’s not one State we are talking about, it’s about all States. It is planned expenditure. Why don’t you make Budget proposals and give justification that this is my outlay on unemployment of people?”Court issues notice but clarifies wider concernDespite its sharp observations, the Suprme Court issued notice to the Centre and other parties on the petition filed by the DMK government-run power utility challenging electricity rules.The court clarified that its concern was not limited to Tamil Nadu but applied to all states offering similar schemes without proper financial planning.Freebies: New currency of political power?A report by Aequitas Investments noted that freebies have increasingly become a major electoral strategy.”As political parties compete in what appears to be a race to the bottom, welfare schemes and ‘freebies’ have evolved from mere campaign promises to the new currency of political power,” the report said. Go to Source
