Supreme Court Questions Impact of Freebie Policies; Political Developments Follow

PTI, Feb 19, 2026, New Delhi: The Supreme Court on Thursday slammed the freebies and subsidies culture ahead of elections and said it was "high time" to revisit such policies that hamper the country's economic development.

Observing that the ultimate financial burden of such populist measures falls squarely on the shoulders of taxpayers, a bench headed by Chief Justice Surya Kant asked: "But this money which the State says it will pay now. Who will pay for it? This is taxpayers' money."

The observations were made during the hearing of a petition filed by the Tamil Nadu Power Distribution Corporation Limited which proposed to give free electricity to all irrespective of consumers' paying capacity.

"It is understandable when some people cannot afford, you have to provide. There are children who cannot afford education, so the state must provide. It is the state's duty. There are children who are bright but cannot afford to go to medical colleges. The state must help them. But the persons who can enjoy, have all means available and are affluent and therefore any kind of freebie first comes to their pocket. Is it not high time for the states to revisit these policy frameworks," the CJI asked.

The bench, also comprising justices Joymalya Bagchi and Vipul M Pancholi, warned that the indiscriminate distribution of largesse is hampering the nation's economic development and straining state exchequers already reeling under massive revenue deficits.

"It is high time that all political stalwarts, leaders, parties, and all social engineers, they need to revisit everything. We will be hampering the development of the nation if we keep on having this largesse distribution. There has to be a balance. But how long will this continue," the CJI asked.

"Most of the states in the country are revenue deficit states and yet they are offering such freebies," overlooking development, a bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M Pancholi said.

The bench said economic development of the nation gets hampered with this kind of largesse distribution and states should work to open avenues for employment instead of giving free food, cycles, electricity to all.

The top court, however, issued notice to Centre and others on the plea of the DMK government-led power distribution firm which proposes to provide free electricity.

The power firm has challenged a rule of the Electricity Amendment Rules, 2024.

"What kind of culture are we developing in India? It is understandable that as part of the welfare measure you want to provide to those who are incapable of paying the electricity charges," the bench asked.

"But without drawing a distinction between those who can afford and those who cannot, you start distributing. Will it not amount to an appeasing policy," the CJI asked.

The bench asked as to why the Tamil Nadu firm suddenly decided to loosen the purse strings after the electricity tariff was notified.

"The states should work to open avenues for employment. If you start giving free food from morning to evening then free cycle, then free electricity then who will work and then what will happen to the work culture," the CJI said.

The bench said states, instead of spending on development projects, do two jobs - paying salaries and distributing such largesse.