The Supreme Court of India has sharply criticized the growing culture of freebies by states despite mounting revenue deficits. Chief Justice Surya Kant stressed the need to prioritize employment generation and development spending over free schemes such as food, electricity, and cash transfers.
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New Delhi: The Supreme Court has expressed strong displeasure over the states' policy of distributing free services. During the hearing, the court noted that many states are already running revenue deficits, yet they are still providing free services like food, electricity, bicycles, and cash assistance. The court warned that such wasteful expenditure could impact the country's economic development.
Chief Justice Surya Kant said that states should focus on creating employment opportunities rather than free schemes. He remarked that the trend of providing free meals, then free bicycles, free electricity, and now direct cash transfers to accounts is increasing, which could lead to a shortage of resources for development work.
The court questioned where the funds for development projects will come from when most states are running revenue deficits. The court said that states should explain why they are not able to spend a sufficient portion of their total revenue on development projects. According to the court, in many states, a large portion of the budget is being spent solely on salaries and free schemes.
The Chief Justice acknowledged that it is the state's duty to provide education, food, and basic amenities to the poor and needy. However, he also noted that in many places, even the affluent are receiving benefits like free electricity, which places an additional burden on taxpayers. The court asked who will ultimately bear the cost of these schemes, as this is public tax money.
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The Supreme Court also commented on why the announcements of free schemes increase just before elections. The court said that all political parties and policymakers should reconsider this trend and prioritize long-term economic stability.
The court's strong observations indicate that the politics of freebies may be subject to intense debate in the future. Striking a balance between helping the needy and fiscal discipline is considered essential for the sustainable development of states.
