Supreme Court Slams State Governments Over Freebies

On 19th February 2026, the Supreme Court criticised state governments for giving away freebies without properly distinguishing between the rich and the poor.

  • The Case:The SC bench was hearing a writ petition filed by the Tamil Nadu Power Distribution Corporation Ltd. challenging Rule 23 of the Electricity Amendment Rules, 2024.

Supreme Court’s Concern over Freebies

Priority to Welfare Measures

  • States, including those with revenue surplus, should give priority to welfare measures and development activities rather than distributing irrational freebies.
  • Even States running fiscal deficits seem to have funds to spend on such schemes without proper planning.

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