“No Will, No New Ideas”: Former Finance Minister P Chidambaram On Budget

New Delhi, 1 February – Former Finance Minister and Congress leader P. Chidambaram has strongly criticised the Union Budget 2025-26, describing it as lacking both vision and the political will to address the country’s economic challenges. Speaking at a press conference following the budget’s presentation, Chidambaram argued that the BJP government’s proposals were aimed at wooing the tax-paying middle class and Bihar’s electorate, while offering little for the rest of the country.

According to Chidambaram, the government has presented an unrealistic picture of financial performance for the ongoing fiscal year 2024-25. He pointed out that revised revenue receipts fell short by ₹41,240 crore, and net tax receipts were lower by ₹26,439 crore. More concerning, he said, was the government’s decision to cut total expenditure by ₹1,04,025 crore, with capital expenditure slashed by ₹92,682 crore.

Key sectors have suffered significant funding reductions. Health saw a cut of ₹1,255 crore, while education faced a loss of ₹11,584 crore. Social welfare, agriculture, rural development, and urban development were all impacted, with rural development suffering the most, losing ₹75,133 crore. Chidambaram also highlighted that funds allocated for the Scheduled Castes, Scheduled Tribes, Other Backward Classes, and minorities had been sharply reduced. For instance, the budget for the PM Anysuchit Jaati Abhyuday Yojana was cut from ₹2,140 crore to just ₹800 crore, while the Post-Matric Scholarship for SCs was lowered from ₹6,360 crore to ₹5,500 crore.

The former finance minister warned that the government’s claim of having improved the fiscal deficit from 4.9% to 4.8% was misleading, as it had come at a “huge cost to the economy.” He argued that the economy was slowing down and that the government’s inability to effectively plan and implement schemes had become evident. While capital expenditure for 2025-26 has been increased by ₹1,02,661 crore, Chidambaram expressed doubts over the government’s ability to utilise these funds effectively, given its poor performance in the previous fiscal year.

He further accused the government of losing confidence in key welfare schemes, pointing to reductions in allocations for POSHAN, Jal Jeevan Mission, PM Garib Kalyan Anna Yojana, and the Crop Insurance Scheme. The Railways, which serve the majority of India’s population, received only a marginal increase in budgetary allocation—₹2,13,552 crore for 2025-26, up just ₹766 crore from the revised estimate of ₹2,12,786 crore in the previous year. This increase, Chidambaram argued, does not even account for inflation, effectively making it a budget cut.

Chidambaram also criticised the government’s flagship schemes for employment and skill development, stating that they had failed to deliver on their promises. The combined budget for the Production-Linked Incentive (PLI) scheme, New Employment Generation Scheme, and Skill India programme was slashed from ₹26,018 crore in the original budget to ₹15,286 crore in revised estimates, a shortfall of nearly ₹11,000 crore. He described this as a betrayal of India’s youth, who had been assured that these programmes would generate thousands of jobs.

Summing up his views, Chidambaram stated that the budget was neither bold nor reform-oriented. He accused the finance minister of walking the “worn-out path” of excessive government control instead of taking decisive steps towards deregulation and economic liberalisation, as had been done in 1991 and 2004. He argued that the budget was filled with new schemes and funds beyond the government’s capacity to implement, further tightening bureaucratic control over economic activity rather than encouraging private sector-led growth.

“The finance minister is not willing to break free. She is not willing to deregulate or get out of the way of entrepreneurs, MSMEs, and start-ups. This budget will only please the bureaucracy, as the government’s grip on economic activity gets tighter,” he said.

Chidambaram concluded by stating that the economy would “trudge along the old path,” delivering a modest growth rate of 6-6.5% in 2025-26—far below the 8% required to put India on track for becoming a developed nation. “This is a government with no new ideas and no will to reach beyond its grasp,” he remarked.

Meanwhile, Prime Minister Narendra Modi hailed the budget as a “people’s budget” that prioritises investment and growth under the ‘Viksit Bharat’ vision. Key announcements included a tax exemption for income up to ₹12 lakh under the new tax regime, new infrastructure and agricultural schemes, and increased focus on Bihar with the creation of a Makhana Board and expansion of Patna airport.

Finance Minister Nirmala Sitharaman defended the budget, stating that it was designed to accelerate growth and benefit all sections of society. “Our economy remains the fastest growing among major economies. This budget continues our government’s commitment to inclusive development and strengthening India’s middle class,” she said.