The Supreme Court on Thursday sharply questioned the practice of providing free electricity irrespective of consumers’ financial status, warning that such policies could strain public finances and hamper long-term economic development.

Hearing a plea related to a proposal by the Tamil Nadu government, a bench led by Chief Justice of India Surya Kant issued notices to the Centre and other stakeholders while making strong oral observations on what it described as a growing “freebies culture” across states.

Court Flags Fiscal Burden On Taxpayers

The bench noted that many states already face revenue deficits yet continue to announce wide-ranging welfare schemes without clear funding plans.

“The economic development of the nation will be hampered with this kind of largesse distribution,” the Chief Justice observed, questioning whether benefits should extend to all consumers, including affluent sections.

He added that public funds used for such schemes ultimately come from taxpayers. “If you want to have a facility you pay for it… this money which the state says it will pay now, who will pay for it? This is tax money,” he said.

The court also pointed out instances where large landowners and high-consumption users receive free power, suggesting that blanket subsidies may not be equitable.

Concern Over Pre-Election Announcements

The bench expressed particular concern over welfare schemes announced shortly before elections, saying such measures require deeper scrutiny.

“We are aware of what happened in some states in recent elections,” the Chief Justice remarked, adding that the issue was not confined to Tamil Nadu alone.

“It’s not one state we are talking about, it’s about all states. Why are schemes being announced just before elections?” he asked, calling for broader reflection by policymakers and society on the sustainability of such practices.

Justice Joymalya Bagchi emphasised the need for transparent budgeting, suggesting that governments should justify welfare spending through formal budget proposals rather than ad-hoc announcements.

Wider Debate On Welfare And Development

While acknowledging that states have a duty to support citizens, the court underlined the need to balance social welfare with fiscal responsibility.

Justice Bagchi noted that targeted spending on issues such as unemployment could be more defensible if backed by clear budgetary allocations and rationale.

The observations come amid an ongoing national debate over subsidies, welfare schemes and their impact on state finances. Although the court has not delivered a final ruling, its remarks signal increasing judicial scrutiny of blanket benefit schemes that extend beyond economically vulnerable groups.

Further hearings are expected after responses from the Centre and other parties.

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