India’s top court has delivered a stern warning to cash-strapped state governments addicted to freebie promises. During a crucial hearing, a bench headed by Chief Justice Sanjaya Kumar Mishra dissected the dangerous trend of offering freebies like electricity waivers, bicycles for students, and direct cash transfers, even as revenues plummet and debts soar.
The case originated from Tamil Nadu, where power firms approached the Supreme Court against a subsidy scheme targeting certain groups. The policy, critics say, has crippled distribution companies financially, forcing them to seek judicial relief.
CJI Mishra didn’t mince words: ‘Governments are handing out freebies left and right—free money, free electricity, free everything. But who’s footing the bill? With states already in deficit, how can they fund development projects?’ He painted a grim picture of states prioritizing vote-winning gimmicks over genuine progress.
Instead of endless subsidies, the court advocated for job generation as the real path to welfare. ‘Move beyond free food and cycles; create employment opportunities,’ the CJI advised, noting the shift to cash transfers as an alarming escalation.
The observations extend beyond Tamil Nadu, implicating multiple states in a cycle of fiscal irresponsibility. The bench questioned the wisdom of launching schemes amid revenue shortfalls and raised eyebrows over their pre-election timing—a classic political ploy, it implied.
While acknowledging the need to support the vulnerable unable to afford basics like education, the court drew a line: freebies shouldn’t pad the pockets of the well-off. This ruling could reshape election manifestos, forcing parties to balance promises with fiscal reality.
As India aims for a $5 trillion economy, the Supreme Court’s call for restraint underscores a critical debate: populism versus prudence. The full implications of this stance will unfold in coming hearings.