'Laboured and tortuous': Chidambaram on Sitharaman's explanation on capex

Earlier, Finance Minister Sitharaman said the capital expenditure has not been reduced but has gone up to ₹11.21 trillion for the 2025-26 fiscal, and claims of cuts are misleading

Senior Congress leader P Chidambaram has said Finance Minister Nirmala Sitharaman gave a "tortuous" explanation to his question on capital expenditure, asserting that the numbers "conclusively" proved that there was a "cut" in capex during 2024-25.

Chidambaram said this in a statement late on Tuesday evening while responding to the answers given by Sitharaman in the Rajya Sabha.

The former finance minister said Sitharaman has given a "laboured and tortuous" explanation to a simple question on what was the budget estimate for capital expenditure in the 2024-25 budget and what is the estimate at the end of year.

"There is a reduction (cut), and I asked in the Rajya Sabha what are the reasons for the cut? FM could have listed the reasons and it is for the people to decide whether the reasons are acceptable or not.

"Instead, she has questioned the very comparison of BE and RE. I am astonished that the Hon'ble FM should say that comparison of BE and RE is 'flawed'. If BE and RE are not comparable, why list the two numbers side-by-side on the same page in the Budget documents," Chidambaram asked.

He also asked why does the finance minister list the Budget Estimate (BE) of fiscal deficit side-by-side with the Revised Estimate (RE) of the fiscal deficit.

"In order to show the world that the government has 'improved' upon the original estimate of the fiscal deficit," he said.

"The same logic applies to all estimates. As far as capital expenditure in 2024-25 is concerned, the numbers conclusively prove that there was a reduction (cut) in 2024-25," Chidambaram said in the statement.

Earlier, Sitharaman said the capital expenditure has not been reduced but has gone up to Rs 11.21 trillion for the 2025-26 fiscal, and claims of cuts are misleading and based on flawed comparisons.

Replying during the Question Hour in the Rajya Sabha, Sitharaman said the capital expenditure was Rs 11.11 trillion in 2024-25.

"Actually, (in) the budget this year..., it has gone up to Rs 11.21 trillion. So, the capital expenditure has not been cut at all," she said.

"So, cutting down the capital expenditure is not the case with us," she added.

Sitharaman was responding to a question by Chidambaram.

Later, responding to a social media post of Chidambaram, Sitharaman said his "claims of a cut in capital expenditure are misleading and based on flawed comparisons".

Chidambaram's selective arithmetic and flawed comparisons between BE and RE of the same year may serve political rhetoric but do little for informed public discourse, she said in a post on X.