The Supreme Court, led by CJI Surya Kant, criticized states for fiscally unsustainable freebies, raising concerns over revenue deficits and rising debt-to-GSDP ratios. Distinguishing welfare from non-merit goods, it warned of Capex erosion. Citing S. Subramaniam Balaji, reforms include targeted subsidies and stronger Election Commission oversight.
Click to View MoreThe rising trend of freebies in India offers short-term relief but poses long-term fiscal and developmental challenges. While such schemes can boost popularity and provide temporary benefits, they strain state finances, reduce productivity, and create dependency. In contrast, inclusive development focuses on sustainable empowerment through education, health, skills, and infrastructure, leading to lasting social and economic progress. Balancing empowerment with fiscal discipline is essential to ensure both social justice and economic stability.
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