Delhi: The Supreme Court of India on Thursday expressed serious concern about the increasing distribution of “freebies” by political parties in different states. The court said that while governments have a duty to support people, excessive giveaways can put heavy pressure on state finances and slow down the country’s economic progress.
Chief Justice Surya Kant observed during the hearing that states are facing financial deficits but are still announcing large welfare schemes. He questioned whether a significant portion of annual revenue should be spent on such benefits instead of long-term development projects.
Court Suggests Structured Welfare Planning
The bench stressed that the issue is not about stopping welfare schemes, but about planning them properly. The judges suggested that instead of announcing broad free schemes, governments should introduce well-designed policies such as structured unemployment support programmes.
Justice Joymalya Bagchi said that if funds are being allocated for welfare, states should clearly present them in their Budget proposals. He added that governments should justify their spending by explaining how much is being set aside for unemployment or social support.
Not Targeting Any One State
The court clarified that its observations were not aimed at any specific state. The concern, it said, applies to all states across India. The judges noted that planned expenditure must be carefully balanced so that it does not harm overall development.
Freebies Becoming Election Strategy
In recent years, welfare promises have become a key part of election campaigns. Political parties often announce free electricity, cash transfers, or other benefits to attract voters. What were once limited campaign pledges have now become a central political strategy in many states.
A report by Aequitas Investments pointed out that such schemes are increasingly framed as welfare measures but can create additional financial stress for state governments if not properly funded.
Case Context
The Tamil Nadu Power Distribution Corporation case refers to a legal dispute involving Tamil Nadu Power Distribution Corporation Limited over issues related to electricity tariff, subsidies, and financial losses, which later triggered a wider debate in court about whether government-funded welfare schemes or “freebies” distort public finances and electoral fairness. While the case focused on specific issues, the court used the opportunity to comment more broadly on the financial impact of large-scale welfare distribution.
