"Be realistic and reasonable. If you do not have money, then do not give things (like water and electricity) free to people," a bench of Acting Chief Justice Gita Mittal and Justice C Hari Shankar said.
It said that the poor suffering from acquired immune deficiency syndrome (AIDS), were the ones who actually needed financial assistance, as they had families dependent on them.
The court said the amount of Rs 1,000, currently being paid per month to such people, was not even Rs 100 per day and asked the government to consider providing them minimum wages.
The bench was hearing a PIL initiated by it after receiving a letter from an AIDS victim, seeking enhancement of the Rs 1,000 pension he received to Rs 3,000.
The Delhi government's lawyer, Gautam Narayan, told the court that it was considering the issue.
The bench then asked the government to place the outcome of its consideration before the court on the next date of hearing on March 14.