Budget – Chidambaram Criticises Allocations in Rajya Sabha Debate
Budget – Former Finance Minister P. Chidambaram mounted a strong critique of the Union Budget in the Rajya Sabha on Monday, questioning both the government’s spending priorities and what he described as significant gaps in the Finance Minister’s address.
Opposition Opens Budget Debate
When the Upper House reconvened at 2 pm, the Chair invited Chidambaram to begin the discussion from the Opposition benches. The senior Congress leader used his opening remarks to identify what he termed “serious omissions” in Finance Minister Nirmala Sitharaman’s speech, arguing that key commitments from the previous year had not been adequately addressed.
He characterised the Budget as overly cautious and lacking vision. According to him, the financial blueprint neither built upon last year’s assurances nor responded robustly to current economic challenges. “It is a cautious document,” he said, adding that it seemed disconnected from earlier promises made before Parliament.
Claims of Reduced Capital Expenditure
As Chidambaram continued, Sitharaman entered the House and listened while he outlined what he described as reductions in planned expenditure. He contended that capital spending had been scaled back, raising concerns about the government’s long-term growth strategy.
Pointing to various sectors, he alleged that allocations for agriculture and rural development had collectively fallen by around Rs 60,000 crore. He maintained that such reductions could have far-reaching consequences for rural livelihoods and infrastructure expansion.
The Opposition benches reacted vocally during portions of his speech, particularly when he referred to funding cuts affecting schemes aimed at supporting farmers and rural communities.
Impact on Rural Infrastructure and State Support
Chidambaram also drew attention to what he said were declines in funding for rural roads, housing initiatives, and financial transfers to states. These programmes, he argued, play a critical role in maintaining grassroots economic activity and strengthening cooperative federalism.
According to his assessment, lower grants to states could constrain development projects and limit states’ fiscal flexibility. He suggested that this approach risks slowing progress in regions that depend heavily on central assistance.
Questions for Key Ministries
Turning his focus to specific ministries, Chidambaram questioned how departments led by Agriculture Minister Shivraj Singh Chouhan and Jal Jeevan Minister C. R. Patil would meet their stated objectives in light of the alleged budgetary reductions. He argued that without sufficient financial backing, flagship schemes could struggle to deliver on their targets.
He further claimed that defence expenditure stood at approximately 1.6 percent of GDP, describing it as historically low. In addition, he asserted that allocations for science and technology, urban development, and social welfare had not kept pace with expectations.
Government Yet to Respond in Debate
While Sitharaman listened during the speech, the government’s detailed response to the Opposition’s criticism is expected later in the ongoing Budget session. The Union Budget traditionally triggers extensive debate in both Houses of Parliament, offering lawmakers an opportunity to scrutinise fiscal priorities and policy direction.
The exchange in the Rajya Sabha underscored the sharp divide between the government and the Opposition over economic management and spending strategy. As discussions continue, the Budget’s provisions and their potential impact on growth, employment, and welfare programmes are likely to remain central to parliamentary deliberations.