FREEBIES AND FISCALITY

The Supreme Court’ recent observations on the culture of “freebies” have reopened a long-simmering national debate: where should India draw the line between welfare and populism?

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Hearing a plea linked to Tamil Nadu’s proposal to provide free electricity irrespective of consumers’ financial status, the Court underscored a fundamental concern — that indiscriminate largesse may undermine economic development and fiscal stability. The bench’s remarks reflect a broader anxiety shared by economists, policy planners, and even sections of the political class: that competitive populism among states is distorting priorities, shifting scarce public resources away from infrastructure, job creation, and long-term growth. Welfare has always been a pillar of India’s social contract, but when benefits cease to be targeted and become universal entitlements untethered from need, they risk weakening the very developmental foundations they aim to strengthen.