'Many states are in debt, yet distributing freebies...' SC makes stern remarks on freebies
The Supreme Court of India has criticized state governments for distributing freebies despite being in significant debt, urging them to focus on job creation instead.
The Supreme Court of India has issued strong comments regarding the distribution of freebies by various state governments, highlighting the unsustainable financial practices they follow. This remark was made by a bench led by Chief Justice D.Y. Chandrachud while hearing a case related to a power company's tariff rates in Tamil Nadu. The court pointed out that while governments continue to offer free electricity and services, they are accumulating substantial debts, which raises questions about the long-term implications for taxpayers.
The Chief Justice stressed that the issue of freebies is not just about the immediate benefits provided to the public but about who will ultimately bear the financial burden. With many states facing significant fiscal deficits, the court is concerned that such policies can undermine economic stability. Instead of perpetuating reliance on free services, the bench argued that state governments should direct their resources towards creating jobs and fostering economic growth, which would yield more sustainable benefits for citizens in the long run.
This commentary from the Supreme Court comes at a critical time when many political parties are leveraging the promise of freebies to gain electoral support, which can potentially lead to a cycle of dependency and financial distress. The court’s remarks serve as a reminder of the need for more responsible fiscal policies from state governments that prioritize sustainable economic development over short-term political gains.