SC refuses to cap states' spending on freebies
The Supreme Court just turned down a plea to set up an expert panel on the economic impact of freebies—like direct cash handouts—offered by state governments.
The judges, B R Gavai and K Vinod Chandran, made it clear they don't want to step into government policy choices.
The petitioner wanted these schemes checked and cleared by RBI, NITI Aayog, and state authorities before rolling them out.
Petition suggested putting a cap on states' spending
The petition also suggested putting a cap on how much states can spend on freebies—no more than 1% of their GSDP or tax revenue (whichever is less).
The idea was to make sure money isn't pulled away from essentials like health or education.
But the court dismissed this idea without further discussion.
Court's concern about election-time freebies
Earlier this year, the Supreme Court did worry out loud that too many election-time freebies might make people less willing to work, mentioning Maharashtra's Ladli Behen scheme as an example.
Still, they haven't put any official brakes on these giveaways yet.