THE JHARKHAND STORY NETWORK
New Delhi, February 19: The Supreme Court on Thursday made strong oral observations against the growing trend of State governments announcing “freebies” and cash transfer schemes just ahead of elections, warning that such policies could hamper the nation’s long-term development.
“We will be hampering the development of the nation if we keep on distributing state largesse,” the Court remarked, questioning how long the practice would continue.
‘Appeasement policy’ without distinction
A Bench comprising Chief Justice of India (CJI) Surya Kant, Justice Joymalya Bagchi and Justice Vipul Pancholi was hearing a writ petition filed by the Tamil Nadu Power Distribution Corporation Limited challenging Rule 23 of the Electricity Amendment Rules, 2024.
During the hearing, the CJI raised concerns over States absorbing electricity bills and extending benefits without distinguishing between those who can afford to pay and those who cannot.
“It is understandable that, as a welfare state, you want to provide relief to the marginalised. But without drawing any distinction between those who can afford and those who cannot afford, if you start giving benefits, will it not amount to a sort of appeasing policy?” the CJI observed.
The Court said that indiscriminately doling out State benefits to all sections, without targeting the genuinely needy, is not conducive to the country’s economic development.
‘What kind of culture are we developing?’
The CJI noted that similar trends were visible across the country, not confined to any particular State.
“Because of freebies, the entire country is already… we are not talking of Tamil Nadu in particular. We are talking pan-India. What kind of culture are we developing?” he asked.
The Bench also questioned the timing of welfare announcements, noting that schemes are often declared just before elections.
“We know what is happening in places where recent elections took place. Why are schemes suddenly announced near elections?” the CJI asked, urging political parties and leaders to revisit their policy frameworks.
Focus on development, not deficit spending
The Court stressed that even revenue-surplus States have an obligation to prioritise long-term development, including roads, hospitals and schools, instead of distributing largesse.
“Our worry is that States are running in deficit and still distributing money. From where is that money coming? Why shouldn’t it be dedicated for development purposes?” the CJI said.
He emphasised that while the State must support children who cannot afford education or bright students who lack resources for higher studies, blanket distribution of benefits to affluent sections needs reconsideration.
“The fundamental principle is that a person should pay for availing services, at least those who can afford to do so,” the CJI added, clarifying that the Court was not advocating profiteering by State entities.
Concerns over direct cash transfers
The Bench also expressed concern over direct cash transfer schemes, questioning their long-term social impact.
“You should create avenues for employment so that people can earn and maintain dignity and self-respect. If you start giving free food, free gas, free electricity, and directly transferring cash into accounts, why will people work?” the CJI asked.
“Is this the nation-building we are doing?” he added.
The CJI noted that the Court is already seized of other petitions relating to the issue of freebies.
In the present matter, the Court agreed to examine the petition of the Tamil Nadu Power Company and issued notice to the Union government.