Supreme Court dismisses petition calling for economic assessment of freebies and cash benefit schemes. Bench says, “We are not inclined to entertain this petition.”
New Delhi: On July 24, the Supreme Court of India on Thursday rejected a public interest litigation (PIL) that had sought the formation of an expert committee to examine the negative effects of direct cash benefit schemes, freebies, and other welfare programmes funded by state governments and the Centre.
A bench led by Chief Justice of India B. R. Gavai along with Justice K. Vinod Chandran declined to entertain the plea, stating:
“We are not inclined to entertain this petition. The writ petition is, accordingly, dismissed.”
The petition had asked for a direction to the Union Government and other authorities to roll out any freebie scheme only after conducting a thorough economic or financial analysis by experts.
It also sought that such schemes be implemented only after getting approval from the Reserve Bank of India (RBI), NITI Aayog, and respective state planning authorities.
The petitioner expressed concern about the long-term economic effects of these welfare programmes and wanted safeguards to ensure that the country’s fiscal health is not compromised.
The plea also suggested that direct cash transfers and similar schemes should be kept within fiscally sustainable limits.
Specifically, it asked that such allocations be capped at one per cent of the Gross State Domestic Product (GSDP) or one per cent of the state’s own tax collections or revenue expenditure, whichever amount is lower.
ALSO READ: Freebies Over Compensation| SC Criticizes Maharashtra Government
The petition further emphasised that there should be strict controls so that resources meant for vital public sectors like healthcare, education, and infrastructure are not diverted.
According to the petitioner, the increasing trend of populist welfare schemes in the form of cash giveaways or free services must be evaluated properly and rolled out only after a cost-benefit analysis to safeguard long-term fiscal stability.
While the petition raised important questions about economic responsibility and governance, the Supreme Court chose not to intervene, making it clear with the remark:
“We are not inclined to entertain this petition. The writ petition is, accordingly, dismissed.”
This dismissal comes amid ongoing debates in Indian politics over the impact of “freebies” announced by various political parties before elections, which critics argue can burden public finances and encourage unsustainable populism.
Click Here to Read More Reports On Freebies
