Why the Supreme Court's caution on freebies demands the attention of India’s political class

At one level, the Supreme Court’s (SC) chastisement last week of political parties and elected governments announcing freebies and direct cash transfers to woo voters ahead of elections might smack of judicial over-reach.Under India’s Constitution, all three arms of the state—the legislature, executive and judiciary—are required and expected to maintain a delicate balance without stepping on each other’s turf. However, a closer look at the object lesson delivered by the apex court to our political class on the long-term cost of such fiscal irresponsibility offers no reason to level that charge.

The SC was only voicing what many observers have said before. That the seemingly endless freebies announced by governments at both the Union and state levels with no heed paid to who can or cannot pay amounts to “appeasement.” And if this trend continues, it will “only hamper the country’s development.” The three-judge bench presided over by Chief Justice of India (CJI) Surya Kant was hearing a writ petition filed by Tamil Nadu Power Distribution Corp Ltd that challenges Rule 23 of the Electricity Amendment Rules of 2024.

This rule provides that power tariffs must be cost-reflective and there should be no gap between the approved annual revenue requirement and the estimated annual revenue from the approved tariff, except in situations of natural calamity. Issuing notice to the Centre, the CJI drew attention to free power distribution by state governments.

Though his remarks were made in the context of Tamil Nadu, the CJI clarified that he was speaking about the freebie culture that seems to have overtaken India, especially on the eve of elections.“What kind of culture are we developing?” asked CJI Surya Kant. “Without drawing any