SC slams freebies culture, says States should provide employment

Why in news

The Supreme Court criticized the 'freebies culture' and issued a notice to the Centre challenging the Electricity Amendment Rules of 2024.

Background

The Supreme Court questioned the Tamil Nadu Power Distribution Corporation Limited's proposal to provide free electricity to all consumers. The court argued that such policies divert resources from development projects and create a dependency on government handouts.

Facts for Prelims

• FactElectricity Amendment Rules of 2024: The specific rules challenged in the plea
• PlaceTamil Nadu Power Distribution Corporation Limited: The body whose proposal was criticized

For Mains

Q. Critically analyze the impact of populist 'freebie' policies on state fiscal health and long-term economic development in India.

Dimensions to cover in your answer

• Fiscal strain: Diversion of public funds from infrastructure and development projects to non-productive subsidies
• Dependency cycle: Creation of systemic reliance on government handouts over sustainable economic growth
• Policy trade-off: Short-term electoral incentives vs long-term human capital investment through employment

Keywords: Fiscal federalism · Populist politics · Economic development · Public expenditure · Resource allocation

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