New Delhi: P Chidambaram, a senior Congress leader and former finance minister, criticized the government’s handling of the economy and its budget for 2025-26. He called the budget’s cuts “cruel” and asked why former Prime Minister Manmohan Singh hasn’t received the Bharat Ratna, India’s highest civilian award, for his contributions.
During a discussion in the Rajya Sabha about the budget, Chidambaram questioned Finance Minister Nirmala Sitharaman’s cuts to the foreign ministry’s budget, joking that maybe she is trying to follow Elon Musk’s strategy to cut government spending. He pointed out that the tax cuts introduced by the FM would primarily help middle-class families and the wealthy, while ignoring the needs of the poorest 50% of the population.
He mentioned that only 3.2 crore (32 million) people pay income tax in India, and with the new cuts, many wealthy individuals will benefit. He noted that important sectors like capital expenditure, which help build infrastructure, are being reduced to meet budget targets.
Chidambaram reminisced about how Manmohan Singh helped India overcome a severe financial crisis in 1991 and urged the FM to learn from his wisdom. He asked why Singh has not received the Bharat Ratna yet.
Chidambaram was skeptical about the FM’s claim that tax savings would boost spending. He pointed out that ₹1 lakh crore (₹1 trillion) in tax cuts is only about 0.3% of India’s total economy and questioned how this small amount would significantly stimulate growth.
He discussed how rising prices for food, healthcare, and education have hurt households, revealing that average spending in rural areas is far less than in cities. He suggested the FM should have reduced the Goods and Services Tax (GST) affecting everyone instead of focusing only on income tax cuts, which he said were politically motivated.
Stating that unemployment is a major issue, Chidambaram criticized the budget’s lack of focus on job creation and highlighted the high rates of joblessness among youth and graduates. He pointed out that while the official unemployment rate is reported at 3.2%, it feels much higher for those searching for jobs.
On the other hand, BJP leader Dinesh Sharma praised the budget as a step towards making India an innovation hub. Shiv Sena leader Milind Deora appreciated the budget too, noting its aims of helping Indian companies become ready for exports.
In the Lok Sabha, Congress MP Manish Tewari compared the current budget strategy to important financial policies of the past, arguing that the government’s approach to economic relief has failed. He emphasized that the focus should be on helping everyday people instead of just businesses.
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