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"Finance Minister Not Keen To De-Regulate": Congress on Union Budget

Former Finance Minister P. Chidambaram, addressing a press conference, stated that the economy would continue on its old trajectory, with a growth rate of no more than 6 to 6.5 percent in 2025-26.

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Congress Slams Union budget

"Finance Minister Not Keen To De-Regulate": Congress on Union Budget

Congress criticized the Union Budget 2025-26, accusing Finance Minister Nirmala Sitharaman of following an outdated approach. The opposition party claims that both the Finance Minister and Prime Minister Narendra Modi have ignored the advice of Chief Economic Advisor (CEA) regarding the need for deregulation, tightening the government's "stranglehold" on people's activities.

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Former Finance Minister P. Chidambaram, addressing a press conference, stated that the economy would continue on its old trajectory, with a growth rate of no more than 6 to 6.5 percent in 2025-26. He remarked, "This is a far cry from the 8 percent growth rate that the CEA estimated to become a developed country. In our view, this is a government with no new ideas and no will to reach beyond its grasp."

Chidambaram also pointed out the lack of willingness to adopt economic reforms similar to those in 1991 and 2004. "The Finance Minister is not keen to de-regulate," he added. "She is not willing to get out of the way of the people, especially the entrepreneurs and the MSMEs and the start-ups. It is the bureaucracy that will be happy with this Budget. The stranglehold of government on the activities of the people is getting tighter."

The Congress leader emphasized that the Budget seemed to be tailored for the tax-paying middle class and the electorate in Bihar, which is set to go to the polls later this year. "These announcements will be welcomed by the 3.2 crore tax paying middle class and the 7.65 crore voters of Bihar. For the rest of India, the Finance Minister had no more than soothing words, punctuated by the applause of BJP members led by the Prime Minister," he said.

Chidambaram also scrutinized the financial performance of the Modi government for 2024-25. He revealed that revised revenue receipts had fallen short by Rs 41,240 crore, while net tax receipts were lower by Rs 26,439 crore. On the expenditure front, he noted cuts totalling Rs 1,04,025 crore, with the largest reductions affecting crucial sectors such as health, education, social welfare, agriculture, rural development, and the development of the North East.

He further criticized the government for achieving a slight reduction in the fiscal deficit at the cost of the economy. "It was achieved at a huge cost to the economy. Those who did not believe us when we said that the economy is slowing down will, I hope, believe us now," he said.

Chidambaram questioned the government's ability to meet its capital expenditure targets for 2025-26, even with an increase of Rs 1,02,661 crore. "Having regard to the experience of 2024-25, I doubt the capacity of the government to achieve the target," he remarked.

He also pointed to several government schemes, including POSHAN, Jal Jeevan Mission, and PM Garib Kalyan Anna Yojana, as examples where the government’s capacity to deliver had significantly diminished.

In terms of railway allocations, Chidambaram argued that the increase in the railway budget was negligible, stating, "Railways serve the overwhelming majority of the population. The increase of a paltry Rs 766 crore in 2025-26 will not even account for the inflation. The allocation will be less than last year's allocation."

Congress P Chidambaram Union Budget 2025