Supreme Court says freebies may hamper economic growth of the country

20 February,2026 09:30 AM IST |  New Delhi  |  Agencies

The Supreme Court has criticised the growing freebies culture, observing that blanket subsidy schemes could hamper economic development. Hearing a plea related to free electricity in Tamil Nadu, the bench said states must balance welfare measures with fiscal responsibility

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The Supreme Court on Thursday slammed the freebies culture, saying it was high time to revisit such policies that hamper the country's economic development.

Taking note of the Tamil Nadu Power Distribution Corporation Ltd's plea, which proposed to provide free electricity to all irrespective of financial status of consumers, the top court said it was quite understandable if states hand-hold the poor.

"Most of the states in the country are revenue deficit states and yet they are offering such freebies" overlooking development, said the bench. The bench said economic development of the nation gets hampered with this kind of largesse distribution.

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