The Supreme Court on Thursday dismissed a petition seeking the formation of an expert committee to evaluate the adverse economic impact of direct cash transfers, freebies, and other state-sponsored welfare schemes.
A bench comprising Chief Justice of India B.R. Gavai and Justice K. Vinod Chandran said, “We are not inclined to entertain this petition. The writ petition is, accordingly, dismissed.”
The plea had urged the court to direct the Central government and other authorities to announce and implement any welfare scheme involving direct benefits or freebies only after a thorough financial or economic assessment. It also sought mandatory approval from expert institutions like the Reserve Bank of India (RBI), NITI Aayog, and relevant state planning bodies before such schemes are rolled out.
Additionally, the petitioner advocated for fiscal limits on such schemes, suggesting that total allocations for direct cash transfers or freebies should not exceed one percent of a state’s Gross State Domestic Product (GSDP), own tax revenue, or revenue expenditure — whichever is lower.
The plea warned that unregulated implementation of populist schemes without expert scrutiny could undermine long-term fiscal stability and divert funds away from critical sectors such as healthcare, education, and infrastructure.
