Overview
- During a hearing on February 19, a bench led by Chief Justice Surya Kant criticized blanket giveaways and asked why schemes are often announced just before elections.
- The court said most states run revenue deficits yet continue universal subsidies, warning that taxpayers ultimately bear the cost and development spending suffers.
- Justices Joymalya Bagchi and Vipul M. Pancholi joined in urging a focus on employment generation over freebies, cautioning that cash transfers and free utilities can weaken work incentives.
- The remarks came while hearing Tamil Nadu Power Distribution Corporation Ltd’s challenge to Rule 23 of the Electricity (Amendment) Rules, 2024, which requires cost‑reflective tariffs and caps revenue gaps at 3%.
- The Supreme Court issued notice to the Centre and others on the petition, made clear it was not delivering a final ruling, and set the stage for further hearings in the weeks ahead.