The Supreme Court of India on Thursday questioned the practice of giving free electricity to all consumers, regardless of their financial status. The court was hearing a plea related to the Tamil Nadu government's proposal to extend free power benefits in the state.
A bench led by Chief Justice of India Surya Kant issued notice to the Centre and other parties. The court raised concerns about the economic impact of such schemes, NewsX reported.
Court flags 'freebies culture'
The Chief Justice criticised what he called a growing "freebies culture" among states and political parties. He said large-scale distribution of benefits without proper checks could hurt the nation's economic development.
"It is the State's duty to provide," the CJI said. "But if even big landlords get free electricity and keep lights and machines running, who will pay for it? This is taxpayers' money."
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The bench questioned the sustainability of universal benefits. It said several states are already facing revenue deficits while continuing to announce welfare schemes, according to NewsX.
Pre-election announcements under scanner
The court also flagged the timing of such schemes. It noted that welfare announcements are often made just before elections.
"We are not on the Tamil Nadu context only," the CJI said. "Why are schemes being announced just before elections? How long will this continue?"
Justice Joymalya Bagchi said the issue concerns all states, not just one. He suggested that governments should present clear budget proposals and justify planned expenditure, especially for unemployment and welfare benefits.
The matter is still under consideration. The court is examining the broader question of fiscal responsibility and the balance between welfare measures and economic discipline across states, as per NewsX.