Paper: GS – II, Subject: Polity, Topic: Judiciary, Issue: Freebies vs Welfare Measures.
Context:
The Supreme Court has expressed strong disapproval of state governments distributing freebies without proper differentiation between the affluent and the underprivileged.
- The court raised concerns about the potential “appeasement” policies that may be in place, especially ahead of elections.
Key Takeaways:
Legal Context:
- The remarks came during a hearing related to a writ petition filed by Tamil Nadu Power Distribution Corporation Limited (TNPDCL), challenging the constitutional validity of Rule 23 of the Electricity (Amendment) Act, 2024.
- TNPDCL argued that the financial gap in the electricity sector has significantly widened, leading to unsustainable burdens on the public exchequer.
Constitutional & Institutional Framework:
Directive Principles of State Policy (DPSP):
- Articles 38, 39 & 41 promote welfare state principles.
- Direct the State to ensure social, economic justice & public welfare.
- Non-justiciable, but form moral – political basis of welfare schemes
Supreme Court’s View:
- Expressed concern over irrational freebies causing fiscal instability.
- Warned of potential economic disaster.
- Suggested formation of an expert body to examine and regulate the issue.
Challenges of Excessive Freebies:
- Fiscal Stress: Rising debt; Punjab ranked lowest (Fiscal Health Index 2025).
- Dependency Culture: Reduces work incentive (e.g., labour shortage concerns).
- Competitive Populism: States copy each other (free electricity schemes).
- Distorted Spending: Cuts funds for infra, health, education.
- Environmental Damage: Free power – groundwater overuse (Punjab, Haryana).
Way Forward:
- Amend Representation of the People Act (RPA): Regulate manifesto promises; disclose funding source.
- Fiscal Cap: Â Limit freebies to % of GSDP/tax revenue.
- Empower ECI: Regulate manifestos; introduce Model Manifesto.
- Voter Awareness: Demand fiscal transparency.
The Supreme Court urged states to reassess welfare policies, stressing responsible governance over electoral populism, and highlighting equitable resource distribution, infrastructure development, fiscal discipline, and long-term sustainable public welfare.
Source: (The Indian Express, The Hindu)
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