Supreme Court Slams Indebted States Over Freebies, Cites Economic Ruin

• Supreme Court criticizes heavily indebted states for offering free electricity, food, and items, stating it spoils work habits and erodes work culture.
• CJI notes freebie schemes often appear before elections, burdening common taxpayers, and states collect only 25% revenue but spend on salaries and free items instead of development.
• Court emphasizes that while helping the poor is a duty, indiscriminate freebies to all hinder economic development and reach those already well-off.
• Top 10 indebted states identified: Tamil Nadu leads with over 8.34 lakh crore debt, followed by Uttar Pradesh, Maharashtra, West Bengal, and Karnataka.
• States like Punjab, Himachal, and Arunachal have GSDT-Loan ratios above 30%, indicating high debt relative to their economies; court urges focus on employment over freebies.