SC observed that most Indian states are already revenue-deficit and yet continue to announce large-scale freebies without factoring in long-term development priorities.

New Delhi: The Supreme Court of India on Thursday strongly criticised the promise of free electricity to consumers in Tamil Nadu, questioning the financial prudence of offering such benefits irrespective of beneficiaries’ economic status.
Hearing a plea linked to the Tamil Nadu Electricity Board, the top court observed that most Indian states are already revenue-deficit and yet continue to announce large-scale freebies without factoring in long-term development priorities.
The bench remarked that unchecked distribution of largesse could hamper the nation’s economic growth.
“Economic development of the nation will be hampered with this kind of largesse distribution,” the court observed during the hearing.
The court further advised that states should focus on generating employment opportunities and creating sustainable growth avenues rather than offering blanket schemes such as free food, bicycles, or electricity to all sections of society, regardless of financial condition.
The observations came while the court was considering a plea related to the Dravida Munnetra Kazhagam (DMK) government’s proposal to provide free electricity.
Published: 19 Feb 2026, 12:43 pm IST
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