The Supreme Court’s recent sharp observations on the culture of electoral freebies—particularly in the context of the Tamil Nadu government’s announcement of free electricity for all—have once again brought to the centre a debate that refuses to die. Questioning what kind of political culture encourages ever-expanding handouts without transparent fiscal backing, the Court has signalled that the issue is no longer just political rhetoric; it is a constitutional and economic concern.

The problem is not welfare per se, but the steady drift from productive, capability-enhancing public spending to perpetual, consumption-oriented political doles. The Court’s intervention now adds moral and institutional gravity to that concern.

The fiscal illusion: Free today, pay tomorrow

Free electricity “for all” is not merely a budget line item; it is a structural commitment. Electricity boards already operate under stress, often dependent on state guarantees and cross-subsidisation. When power is made universally free, without differentiation or targeting, three distortions occur simultaneously: inefficiency and wastage are encouraged; private investment confidence gets eroded as pricing becomes politically manipulated; and fiscal gaps widen, requiring larger transfers financed through borrowing.

There is no such thing as free electricity. Someone pays. If not the consumer, then the taxpayer. If not the taxpayer today, then the taxpayer tomorrow—through debt.

When recurring revenue does not keep pace with recurring expenditure, governments borrow. Borrowing leads to rising interest payments. Rising interest payments consume revenue that could otherwise fund development. To finance even basic services, more........

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