India News
The Supreme Court has made strong observations regarding the implementation of freebie schemes, stating that such policies are becoming an obstacle to the development of states. Chief Justice Suryakant remarked that indiscriminate free schemes are affecting financial discipline.
The issue arose after provisions of the Electricity Act, 2024 reportedly posed hurdles to the implementation of a free electricity scheme in Tamil Nadu. Challenging Clause 23 of the Act, the Tamil Nadu power distribution company approached the Supreme Court, seeking exemption to continue the free electricity scheme.
During the hearing, the bench led by the Chief Justice expressed serious concern. The court questioned the Tamil Nadu government about the kind of culture being promoted through blanket free schemes. The Chief Justice observed that extending benefits to those genuinely unable to pay electricity charges is understandable, but treating financially capable individuals and the poor alike is unjustified.
The Supreme Court opined that free schemes should be limited strictly to eligible beneficiaries. It also expressed concern that even landowners are reportedly receiving free electricity benefits. The court noted that financially stressed states are still continuing such schemes despite mounting fiscal deficits.
The Chief Justice further observed that many states are struggling to implement welfare schemes due to financial constraints, with a significant portion of revenue being spent on salaries and freebies. The Supreme Court has issued notices to both the Central and State governments, directing them to respond within four weeks.
