'Bihar bias, ignored key sectors': P Chidambaram slams Union Budget 2025

Former Finance Minister P Chidambaram accused the government of favouring taxpayers and voters in Bihar in Union Budget 2025

Senior Congress leader and former Finance Minister P Chidambaram has criticised the Union Budget 2025, accused the government of favouring taxpayers and voters in Bihar while overlooking crucial sectors such as health, education, social welfare, and rural development.

 

In an interview with India Today TV, "The only audience that matters to this government is the 3.2 crore tax-paying filers and the 7.65 crore voters of Bihar. Beyond that, what does the Budget do? It has, in fact, deprived the remaining people of the country."

 

In her record eighth Budget, Finance Minister Nirmala Sitharaman announced significant tax rebates for salaried class and unveiled a series of initiatives for Bihar, which goes to polls later this year. These include the establishment of a Makhana Board, financial support for the western Kosi canal project, and capacity enhancement for IIT Patna.

 

Chidambaram, while acknowledging the tax relief measures, questioned their limited reach. "This initiative will benefit only 3.2 crore people. What happens to the remaining 140 crore? If GST was cut, taxes on petrol and diesel reduced, and MNREGA wages increased, more people would have benefited," he argued.

 

The former finance minister expressed concern that the Budget largely neglects economically weaker sections. "On health, education, social welfare, agriculture, and rural development, the government did not spend the money it allocated for the current year. In each of these areas, which would have benefited the masses, the government fell short of expenditure," he claimed.

 

Chidambaram questioned whether the government lacked the capacity or the willingness to spend allocated funds. "If the government has not fulfilled last year’s promises, why should we believe it will deliver on this year’s commitments?" he asked.

Chidambaram questions growth projections in Budget 2025

 

He also criticised the economic growth projections presented in the Budget. Sitharaman forecasted a 6.4 per cent growth rate, but Chidambaram pointed out that the Chief Economic Adviser had previously emphasised the need for sustained 8 per cent growth over the next two decades to achieve developed country status by 2047, something which was also highlighted in the Congress' in its 'Real State of the Economy' report. 

 

"Both cannot be right," Chidambaram asserted. "Arithmetic makes it clear that at 6-6.5 per cent growth, India risks being stuck in the middle-income trap."

 

Citing the latest household expenditure survey, he highlighted economic distress, revealing that the monthly per capita expenditure in rural areas stands at Rs 4,120 (approximately Rs 130 per day), while in urban areas, it is Rs 7,000 (around Rs 230 per day).

 

"There is no money in the hands of jobless youth, Scheduled Castes, Scheduled Tribes, and Other Backward Classes," Chidambaram remarked. "The government has put money in the hands of tax-paying middle-class citizens, which is welcome, but what about the vast majority of people?"

 

He further criticised the introduction of new schemes, questioning their necessity when existing ones remain "underfunded or underutilised." Highlighting a decline in revenue receipts and tax collections, Chidambaram said that the Budget fails to inspire optimism for economic growth or equitable development.