'Appeasing policy': Why Supreme Court flagged 'freebies culture' and cautioned states
Times of India
by TOI NEWS DESKFebruary 19, 2026
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The Supreme Court of India has raised significant concerns over the growing trend of states distributing "freebies" such as free electricity, food, and other services without targeting specific groups in need. In a recent hearing, the court cautioned that this indiscriminate distribution could harm economic development, strain state finances, and create an "appeasing policy" that benefits everyone regardless of their ability to pay. The bench emphasized that while welfare measures for the poor are justified, extending them universally may weaken long-term growth and infrastructure investment.
The court’s remarks were made during a case involving Tamil Nadu Power Distribution Ltd., which plans to provide free electricity to all consumers, irrespective of income. The judges highlighted that many states already face revenue deficits yet continue to introduce large-scale free schemes. They questioned the wisdom of such spending, arguing that it could divert resources away from critical areas like employment generation and infrastructure development. For instance, Chief Justice Surya Kant asked why 25% of a state’s annual revenue couldn’t be allocated for development instead of freebies.
The bench also expressed concerns about the broader societal impact of this "freebies culture." They warned that it could erode work incentives and create a dependency mindset among citizens. For example, Justice Bagchi noted that if states keep offering free services like food, cycles, or electricity without distinguishing between those who can afford to pay and those who cannot, it risks undermining productivity and the overall work culture. The court also criticized political parties for using such schemes as election tools, raising questions about whether these measures truly serve public welfare or political gain.
The Supreme Court’s observations are not limited to Tamil Nadu but apply to all states offering similar schemes without proper financial
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Originally published on Times of India on 2/19/2026