Supreme Court Highlights Fiscal Risks of Electoral Freebies and Calls for Budget Discipline

The Supreme Court of India has expressed concern over the growing practice of electoral freebies, warning that indiscriminate subsidies and cash transfers risk fiscal instability and undermine democratic fairness. Highlighting shifts from material giveaways to direct cash transfers timed near elections, the Court emphasized that such populism compromises a level playing field and diverts resources from essential state functions. While refraining from judicial directives, the Court called for non-partisan enforcement of budget discipline and urged political consensus to address unchecked populism's economic and democratic risks.