Union Budget 2025: Budget only for polls and allies, says Opposition

Several Chief Ministers, including Tamil Nadu's M K Stalin and Karnataka's Siddaramaiah, criticised the Budget for ignoring the demands and needs of their states, while favouring only Bihar

Opposition on Saturday slammed the Union Budget 2025, claiming that the government was “bankrupt of ideas” and was “walking on the worn-out path” at a time when there was a need for paradigm shift to help the economy achieve 8 per cent growth to make India a developed country.

 

The Leader of Opposition (LoP) in the Lok Sabha, Rahul Gandhi, said the Budget was “a band-aid for bullet wounds”.

 

“Amid global uncertainty, solving our economic crisis demanded a paradigm shift. But this government is bankrupt of ideas,” Gandhi said in a post on X.

 

Several chief ministers, including Tamil Nadu’s MK Stalin and Karnataka’s Siddaramaiah, criticised the Budget, claiming that it ignored the demands and needs of their states, while favouring only Bihar.

 

 

The Congress too claimed the Budget was an effort to woo the country’s 32 million (3.2 crore) tax paying middle class and the 76.5 million electorate of Bihar, which is due for Assembly polls later this year, but very little for the rest of the country.

 

Critiquing the Budget, Congress leader P Chidambaram said that the Chief Economic Adviser (CEA), in his Economic Survey, gave “sensible advice” to the government.

 

“Get out of the way” was his call to the government”, but “it is evident that neither the Finance Minister nor the PM care for the advice of the CEA,” Chidambaram said.

 

The Congress leader said that the FM is “walking on the worn-out path and she is not willing to break free as we did in 1991 and 2004.”

 

“She is not willing to deregulate. 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 the government on the activities of the people is getting tighter,” Chidambaram said.

 

The former finance minister pointed out that the Budget, contrary to the CEA’s advice, 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,” he said.

 

He said the economy will trudge along on the old path and deliver no more than the usual 6 per cent or 6.5 per cent growth in 2025-26.

 

“This is a far cry from the 8 per cent growth rate that the CEA estimated in order 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 added.

 

He said the government’s improved fiscal deficit from the budget estimate of 4.9 per cent to the revised estimate of 4.8 per cent 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. Those who did not believe us that the capacity of the government to plan and implement schemes has diminished will, I hope, believe us now,” Chidambaram said.

 

The Congress leader said that capital expenditure for 2025-26 has been increased by Rs 1,02,661 crore but, “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.

 

The Congress leader said for the current year 2024-25 the revised revenue receipts are lower by Rs 41,240 crore. He said the revised net tax receipts are lower by Rs 26,439 crore. On the expenditure side, total expenditure has been cut by Rs 1,04,025 crore and capital expenditure has been cut by Rs 92,682 crore, he said.

 

Chidambaram said the allocation for the health sector has been cut by Rs 1255 crore, for education by Rs 11,584 crore, for social welfare by Rs 10,019 crore, for agriculture by Rs 10,992 crore, rural development by Rs 75,133 crore, for urban development by Rs 18,907 crore.

 

He said the government has “lost faith” in some of the welfare programmes it had announced with fanfare, such as POSHAN, Jal Jeevan Mission, NSAP, PMGSY, Crop Insurance Scheme, Urea Subsidy, and PM Garib Kalyan Anna Yojana, as their allocations have been cut, suggesting the government’s diminished capacity. Chidambaram said the Railways have been short-changed.