Veteran Congress leader P Chidambaram on Sunday sharply criticised the government over Union Budget 2026-27 and said that it has cut funds for crucial sectors and programmes, significantly reducing the capital expenditure. The budget, the former union finance minister said, is not a "bold exercise" in fiscal prudence and consolidation.
Speaking at a press conference at AICC headquarters in Delhi, the Rajya Sabha MP said Union Finance Minister Nirmala Sitharaman's speech and the Union Budget have failed the test of economic strategy and economic statesmanship. Sitharaman didn't address about issues such as growing trade deficit with China and the tariffs imposed by US President Donald Trump, he said.
"I am not sure whether the government has read the Economic Survey. If they have, then it appears that they have decided to discard it completely and fall back on their favourite pastime of throwing words usually anachronyms at the people. I can count at least 10 challenges identified by the Economic Survey and many acknowledged knowledgeable experts," Chidambaram said.
He said Sitharaman is "not tired" of adding to the number of schemes, programmes, missions, institutes, initiatives and all. Many of these schemes will likely be "forgotten and vanish" by next year, Chidambaram said. He further said that the government should tell people about how the budget will create employment opportunities for them.
"Months after the passing of the Income Tax Act, 2026, which will come into force on 1 April, 2026, the Finance Minister has tinkered with some rates. While the impact of the numerous minor changes has to be examined carefully, it must be remembered that the overwhelming majority of the people have no concern with income tax or income tax rates," he said.
"As far as indirect taxes are concerned, the average person will be concerned with only paragraphs 159, 160 and 161 of the speech. I welcome these minor concessions," the senior Congress leader added.
