India's Top Court Examines Distinction Between Freebies And Public Welfare Amid Fiscal Concerns

The Supreme Court has emphasised that not every free service qualifies as a 'freebie', marking a significant intervention in the ongoing debate over electoral promises and public welfare schemes.

Chief Justice Suryakant, while hearing a petition challenging the practice of political parties offering freebies during elections, described the matter as requiring serious consideration beyond simple electoral tactics.

“Distribution of State largesse to individuals at a large scale is different from investing State largesse in public welfare schemes. That distinction should be kept in mind,” Chief Justice Surya Kant observed orally.

The Supreme Court asked why there was no “dedicated diversion of revenue surplus for developmental purposes which would further the constitutional ideal of inclusivity through free medical care and education for the poor and those not in the creamy layer of the society. The State has a commitment towards this end”.

The apex court's observations come as it continues to examine a public interest litigation filed in January 2022 by advocate Ashwini Kumar Upadhyay, which argues that irrational freebies from public funds unduly influence voters and violate constitutional provisions.

The Chief Justice said launching welfare schemes was an obligation the State had to achieve under the Directive Principles of State Policy in the Constitution.

Upadhyay said when the petition was filed, the nation was in debt of Rs 1.5 lakh crore, which had since increased to Rs 2.5 lakh crore.

Every Indian was in debt, and yet the State continued to rain freebies before elections, he submitted.

“This is a very, very important matter,” Chief Justice Kant reacted, agreeing to list it early for hearing.

The petition seeks restrictions on political parties promising freebies during election campaigns, with some demanding the Election Commission freeze symbols and cancel registrations of offending parties.

The apex court had previously observed that determining the difference between freebies and welfare measures remains complicated.

While items like free laptops, televisions and cash handouts are often termed freebies, structured programmes such as the Public Distribution System, mid-day meals and MGNREGA are classified as essential welfare schemes aimed at long-term socio-economic upliftment.

The Reserve Bank of India has highlighted fiscal concerns, noting that state government expenditure on subsidies grew 11.2 per cent in the 2021-22 financial year.

The matter has drawn interventions from multiple political parties, with the Aam Aadmi Party arguing that basic utilities like free water and electricity constitute welfare rather than freebies.

The court had earlier suggested forming an expert committee comprising members from the Finance Commission, NITI Aayog, and the RBI to examine the issue comprehensively.

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