New Delhi, February 19, 2026: The Supreme Court has expressed strong reservations over government schemes providing free facilities, warning that such policies could hinder the country’s economic growth. During a hearing on Thursday, the Court criticized blanket free distribution of electricity, food, and bicycles, asking, “If everything is provided for free, who will work?”
The matter arose when Tamil Nadu Power Distribution Corporation Limited (TNPDC) proposed providing free electricity to all consumers, without differentiating between those who can pay and those who cannot. A bench comprising Chief Justice Suryakant, Justice Joymalya Bagchi, and Justice Vipul M. Pancholi highlighted that while most states face revenue deficits, they continue offering such free benefits, neglecting development priorities.
Court Warns of Economic Consequences
The Supreme Court emphasized that indiscriminate free schemes may obstruct economic growth. Instead, states should focus on creating employment opportunities rather than distributing free food, bicycles, or electricity. The Court issued notices to the Centre and others regarding the TNPDC petition, which challenges a provision of the Electricity Amendment Rules, 2024.
Observing the broader implications, the bench remarked: “It is understandable to assist those unable to pay electricity bills under welfare measures. But when free facilities are extended without differentiation, it becomes a policy of appeasement. If free food is provided from morning till evening, followed by free bicycles and electricity, what will happen to work culture?” The bench added that states often spend on salaries and free benefits instead of investing in development projects, a practice that could undermine productivity and economic progress.
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