Former Finance Minister P Chidambaram on Saturday said that the Union Budget 2025-26 is proof that the government has run out of ideas as it has nothing new to offer.
Speaking to to the media, Chidambaram said the financial performance of FY24-25 showed that revised revenue receipts are lower by Rs 41,240 crore and so is revised net tax receipts by ₹26,439 crore.
‘Cut in total expenditure’
The total expenditure has been cut by ₹1,04,025 crore and capital expenditure has been cut by ₹92,682 crore. Due to that sectors like health, education, social welfare, agriculture and rural development will suffer the most, he pointed out.
Looking at Budget Estimates and Revised Estimates, it appears the government has lost faith in some programmes — POSHAN, Jal Jeevan Mission, NSAP, PMGSY, Crop Insurance Scheme, Urea Subsidy, and PM Garib Kalyan Anna Yojana — announced with fanfare in the previous Budget speeches. It’s also a reflection that their capacity has significantly diminished.
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The Railways have also been short-changed, he stated.
“The take away from Budget 2025-26 is that the BJP is wooing the tax paying middle class and the Bihar electorate. For the rest of India, the Finance Minister had no more than soothing words, punctuated by the applause of BJP members led by the Hon’ble Prime Minister,” he said.
‘Huge cost to economy’
“There is nothing to cheer about the fact that the government has improved the fiscal deficit from the budget estimate of 4.9 per cent to the revised estimate of 4.8 per cent. It was achieved at a huge cost to the economy,” he said.
“Those who did not believe us when we said that the economy is slowing down will, I hope, believe us now. Those who did not believe us that that the capacity of the government to plan and implement schemes has diminished will, I hope, believe us now,” Chidambaram said.
Though capital expenditure for 2025-26 has been increased by ₹1,02,661 crore, he said, “having regard to the experience of 2024-25, I doubt the capacity of the government to achieve the target”.
“I am glad, however, that the Finance Minister has shed her faith in astrologically determined numbers,” Chidambaram said.
Chidambaram said it is evident that neither the Finance Minister nor the Prime Minister care for the advice of the Chief Economic Adviser.
“He gave sensible advice in the Economic Survey. ‘Get out of the way’ was his call to the government. On the contrary, the Budget is full of new schemes and programmes, many of which are beyond the capacity of this government. I counted at least 15 new schemes or programmes and 4 new funds,” the opposition leader said.
