Supreme Court strict on freebies: Questions on election free schemes, advice to states on financial discipline, Supreme Court of India Warns States on Poll Freebies: 10 Big points

The judiciary has now taken a strict stance on the free schemes being announced by the states just before the elections. suprime court Regarding ‘irresponsible freebies’, it warned the states that announcements made without financial preparation can have a heavy toll on the country’s economy and public institutions. The court questioned the Tamil Nadu government as to why the free electricity scheme was announced at the last moment, forcing power distribution companies to make drastic changes in tariffs and budgets.

The bench said that many states are already in revenue deficit, in such a situation it should be clear how big subsidy schemes will be run. The court also asked whether people would lose motivation to work if direct cash assistance was given. Chief Justice Surya Kant said that helping the needy is necessary, but giving benefits without differentiating between rich and poor can become appeasement and not policy.

What are the 10 big things of the hearing?

1. The court said that free schemes announced without financial planning put a burden on the public exchequer and can harm long-term economic growth.
2. The court asked why the free power scheme was brought just before the elections, forcing DISCOMs to suddenly change tariffs and budgets.
3. The bench said that many states are already in deficit, hence running huge subsidy schemes is against financial discipline.
4. The Court noted that in many states, new welfare schemes were announced just before the recent elections, which appear to be more politics than policy.
5. The court asked that if direct cash transfer schemes increase, will people’s willingness to work not weaken?
6. Due to sudden subsidy, power distribution companies are not able to decide the right tariff, which puts their financial stability at risk.
7. The court said that it is the job of the tribunal and the distribution companies to decide the tariff, and last minute decisions of the government spoil the process.
8. The Chief Justice said that this problem is not just of one state, but ‘freebies politics’ has become a trend in the entire country.
9. The court clarified that eligibility should be fixed in welfare schemes, otherwise giving freebies even to capable people cannot be called a policy.
10. The court warned that helping the needy is a different matter, but giving benefits without discrimination can be like a policy of appeasement.