Finance Minister has not acknowledged 'demand constrained economy' in Budget: Chidambaram

Former finance minister and Congress leader P Chidambaram said that Finance Minister Nirmala Sitharaman has not acknowledged the challenge of "demand constrained" and "investment starved" Indian economy.

He was addressing a press conference here on Saturday.

"Indian economy is demand-constrained and investment-starved. Finance Minister has not acknowledged these two challenges, and that is a pity. Consequently, she has proposed no measures or solutions to those two challenges," said P Chidambaram.

"If the twin challenges remain, the economy will not turn around and there will be no relief to the millions of poor and the middle class," he added.

"In 2019-20, the Finance Minister failed to meet any of the key Budget Estimate targets -- nominal GDP growth, fiscal deficit, net tax revenue collection, disinvestment revenue or total expenditure. There is no assurance that she will meet targets set for 2020-21," said Chidambaram.

"Money is no substitute for freedom, what the people of Jammu and Kashmir and Ladakh require is freedom, people of Kashmir valley requires the resurrection of human rights," said Chidambaram.

The government on Saturday allocated Rs 30,757 crore for Jammu and Kashmir and Rs 5,598 crore for Ladakh for 2020-21 in the Union Budget.

Finance Minister Nirmala Sitharaman made the allocations for the two union territories while presenting the union budget for the coming fiscal.

The government also allocated Rs 100 crore for hosting G-20 Summit in the country. Finance Minister Nirmala Sitharaman said India will host G20 Presidency in 2022 and Rs 100 crore has been allocated for making preparations for the occasion.