Freebie Culture: Supreme Court expressed serious concern over election cash transfer and free schemes, asked – where are the loss making states getting the money from?

New Delhi. The Supreme Court has expressed deep concern over the increasing trend of free schemes and cash transfers being announced by the states just before the elections in the country. The court has termed this ‘freebie culture’ as a major obstacle to the long-term economic development of the country. The bench headed by Chief Justice Surya Kant, while making oral remarks, said that this trend is taking the form of appeasement, which is not good for nation building.

The hearing was being held on a petition filed by Tamil Nadu Power Distribution Company Limited, which has challenged a rule of the Electricity Amendment Rules 2024. Justice Joymalya Bagchi and Justice Vipul Pancholi were also included in this bench.

‘If everything is available for free, why would anyone work?’

During the hearing, the court raised an important question on the social impact of this policy. CJI Surya Kant said, “If people start getting free electricity, free gas, free food and money directly in their bank accounts, then why will they go to work?” The court believed that this kind of ‘blanket freebie’ culture is seriously affecting the work culture of the country.

“This is a serious issue. Giving equal benefits to all without distinguishing between who is capable and who is needy cannot be the right policy. This keeps people away from work, which is a matter of concern for the nation.” – Supreme Court

The court clarified that it is the constitutional and moral obligation of the state to help the needy, but when its benefits start reaching even the able-bodied and affluent class, it shows a serious lapse in policy.

The state is in loss, then where is the money coming from?

The bench also wondered how many states were able to announce such schemes despite the fact that they were already running into financial losses. The Chief Justice asked, “Where is this money coming from? Shouldn’t this money be used for roads, hospitals, schools and other important development works?”

The Court indicated that all political parties and policy makers need to seriously reconsider this model. According to the court, states should focus on creating employment opportunities, so that people can be self-reliant and live their lives with dignity, and not be dependent on free facilities. If state funds continue to be used only for electoral gains, the overall development of the country will definitely continue to be affected.