Chidambaram slams 'parsimonious' Budget, says it will vanish from memory

Congress leader P Chidambaram on Monday slammed the government over the Union Budget 2026, saying it is "parsimonious, forgetful of the past year" and will vanish from memory of people. Initiating the debate on Union Budget in the Rajya Sabha, Chidambaram said that in budget discussion, every subject, every ministry, every department for whom money is allocated and an appropriation is sought can be discussed.

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'Govt wants to soar high and reach another planet'

Chidambaram said a lot of people put on a lot of work and do a lot of research and analysis to prepare the Economic Survey. "I wonder whether the government and its key ministers read the economic survey. The most charitable view is that they don't care for the Chief Economic Adviser. The uncharitable view is that while the Chief Economic Adviser is bringing the government down to earth, what is happening around the country, I think the government and the ministers want to soar high and reach another planet, as if we are not living on earth," he said.

Key Challenges Highlighted

The former Finance Minister said there are a number of challenges listed in the Economic Survey. "I'll take up only four challenges:

Capital Investment

Capital Investment. For some years now, for almost 12 years, capital investment gross fixed capital formation is stuck at 30% of GDP. Net FDI in 2024-25 has collapsed to less than 0.09%. FPIs, foreign portfolio investors are pulling out. Private investment, although companies are cash rich, is stuck at 22% of GDP. In this situation where neither the public sector nor the private sector nor the foreign investor is investing in India, this government has cut capital expenditure," he said.

Unemployment

Referring to unemployment, he said the youth unemployment is 15%, less than 25% of the workforce is in regular employment. He said there are more workers are in the agriculture sector than they were four or five years ago. "Only in a country with 144 crore people, only one 195 lakh, that is less than 2 crore, are employed in a factory. Manufacturing, which is largely factories, is stuck at 16% for many, many years. I'll give you an example. The PM internship scheme was touted last year. The Finance Minister made that statement. Corporate houses were persuaded to offer internship."

He said of 1.65 lakh offers that came, only thirty-three thousand were accepted. "Are they no young men and women to accept an internship in big companies? Of the thirty-three thousand who accepted, six thousand left the job. So, what is wrong with the internship scheme? She touted it last year. She must explain why the scheme is totally failed this year," he said.

'Reform Express is stuck'

Chidambaram said the government's "Reform Express is stuck". "Look at the nominal growth rate. The nominal growth rate in 2023-24 was 12%. In 24-25, it came down to 9.8%. In 25-26, the year which will end in a month, it's come down to 8%. Where is the reform express gathering momentum? You refer to the real GDP growth, real GDP growth. But Dr. Surjit Bhalla, one of your strongest supporters, has mocked the real GDP growth. That's because your CPI inflation is half a per cent, your wholesale inflation is negative, your deflator is only 0.5. With these numbers, you can always make a GDP growth. But the nominal growth has come down from 12% in 23-24 to 9.8% in 24-25 and 8% in 25-26," he said.

'Fiscal consolidation is slow'

Chidambaram said the fiscal consolidation is slow. "The fiscal deficit in 25-26 is 4.4%. She has achieved her target. For next year, it will come down only to 4.3% and the revenue deficit in the current year will be 1.5% and next year also it will remain at 1.5%. Now what is the FRBM target? FRBM target is 3% of fiscal deficit and the revenue deficit, the ideal is to eliminate the revenue deficit, but it can be up to 1%. At this rate, at this rate of consolidation, it will take 12 years to achieve the FRBM target," he said.

He said there has been sizeable cuts in expenditure in agriculture and rural development and Jal Jeevan Mission.

'Budget duped villages, farmers'

Participating in a debate, Congress leader Randeep Singh Surjewala said the Union Budget has duped villages, farmers and marginalised sections of society. Surjewala asserted that the Budget's priorities and allocations are contrary to the interests of rural India, farmers, the poor and deprived classes. He claimed the government has "sacrificed the interests of farmers under the India-US trade deal". He said that the Budget cuts provisions and outlays for needy sections.

Surjewala described Budget 2026 as "politically directionless" and "policy-wise bankrupt", arguing it contains technical jargon with no substantive deliverables. (ANI)