Can courts regulate freebies? What the Supreme Court said over the years

In 2025 ahead of the Bihar election, the SC slammed the practice of announcing freebies ahead of elections.

• Supreme Court criticizes states for irresponsible freebies
• Court warns freebies burden taxpayers, strain state finances
• SC questions if free electricity for all is an appeasing policy

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The Supreme Court this week sharply criticised states for announcing “irresponsible” freebies. The court demanded to know how states planned to fund actual development if they continued offering free food and free electricity.

The court specifically questioned the proposal from poll-bound Tamil Nadu's government to provide free electricity to its customers, irrespective of financial status.

"If governments continue to provide free money, electricity, and other amenities, who will ultimately bear the cost?" the court said. The top court also stated that the burden of freebies will ultimately fall on taxpayers.

A bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice Vipul Pancholi made the remarks while hearing a writ petition filed by Tamil Nadu Power Distribution Company Ltd challenging Rule 23 of the Electricity Amendment Rules, 2024.

The SC also cautioned states and asked whether such a culture, without drawing a distinction between the haves and the have-nots, would amount to an "appeasing policy”.

However, this is not the first time that the top court made remarks on “freebies culture” in the last couple of years.

What are freebies?

India has a longstanding tradition of implementing welfare programmes intended to improve the economic security of disadvantaged sections of society. However, when such benefits are announced in an electoral context, they are often criticised as “freebies” or “giveaways”. In politics, “freebies” typically refer to goods or services promised by parties to gain electoral support.

According to a 2022 report by the Reserve Bank of India (RBI), the definition of "freebies" is "a public welfare measure provided free of charge".

Many observers trace the roots of modern “freebies politics” to Tamil Nadu.

In 1967, the DMK swept to power on the promise of subsidised rice, making it a central electoral issue.

In subsequent years, both the AIADMK and the DMK offered items such as free televisions, mixers, grinders, laptops and other household appliances as part of their poll promises.

The Economic Survey 2025–26 cautioned against the unchecked expansion of state-funded freebies, warning that such measures are straining public finances and widening fiscal deficits.

SC’s take on freebies since 2022

In August 2022, during hearings on a PIL seeking regulation of poll promises, a Bench led by then Chief Justice N V Ramana termed the issue of “irrational freebies”  a “serious matter.”

The bench said it was essential to define what is a freebie as the issue pertaining to what constituted freebies and what doesn't, had become increasingly complicated.

In 2023, the SC underlined the difficulty of clearly defining what constitutes a “freebie.” The court observed that welfare schemes such as education, healthcare and food security cannot automatically be categorised as irrational handouts.

It further noted that decisions relating to fiscal policy and election manifesto promises largely fall within the domain of the legislature and the executive.

In proceedings during 2024, the top court reiterated its concerns over the fiscal impact of expansive welfare promises. It flagged issues such as mounting burden on state exchequers and risks to long-term fiscal sustainability.

In 2025 ahead of the Bihar election, the SC slammed the practice of announcing freebies ahead of elections. Accoring to the court, it is observed that such measures could discourage workforce participation if people become dependent on free rations and cash transfers.

The debate resurfaced when RJD leader Tejashwi Yadav promised “one government job to every family”.