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The Supreme Court of India issued a scathing critique of all state governments on Thursday, targeting the growing trend of offering "freebies" or pre-election handouts. A bench led by Chief Justice Surya Kant expressed deep concern over the long-term impact of these subsidies on national development. The court's remarks were triggered by a proposal from Tamil Nadu's Power Distribution Corporation to provide free electricity to all customers regardless of their financial status. The bench questioned how states could justify such indiscriminate spending while simultaneously running into massive budgetary deficits.
Chief Justice Surya Kant highlighted a worrying "pan-India culture" where essential services and even direct cash transfers are being offered without distinguishing between the needy and the affluent. The court emphasized that while welfare measures for the poor are a state's duty, providing free goods to those who can afford them drains the exchequer. The bench warned that this practice creates a cycle where no funds remain for critical infrastructure, such as modern hospitals, schools, and colleges, which are essential for the overall public good.
The court further mandated that at least a quarter of every state's revenue should be strictly reserved for development work. Even in revenue-surplus states, the justices argued that the obligation should be toward building sustainable infrastructure rather than distributing election-time doles. Justice Joymalya Baghchi added that states wishing to provide subsidies must include them in their formal budgetary allocations and provide a clear justification for how such expenditures will be funded without compromising growth.