Union Budget – Congress Flags Economic Gaps, Questions Government’s Fiscal Direction
Union Budget – The Congress on Sunday mounted a strong critique of the Union Budget 2026–27, arguing that the Centre has failed to confront pressing economic realities and has offered little relief to citizens grappling with unemployment, rising prices, and rural distress.
Senior Congress leaders said the Budget reflects a lack of fresh economic thinking and does not outline credible steps to revive growth or restore confidence among households, farmers, and investors. According to the party, several structural challenges identified by experts and the government’s own assessments remain largely unaddressed.
Kharge Says Budget Lacks Direction and Relief Measures
Congress president Mallikarjun Kharge said the Budget does not provide clear answers to India’s mounting economic concerns. He stated that the document fails to offer practical solutions to issues such as inflation, joblessness, shrinking household savings, and widening inequality.
Kharge alleged that the government appears to have exhausted new policy ideas and has presented proposals that raise more questions than they resolve. He added that vulnerable sections of society, particularly the poor, have gained little from the announcements. According to him, the Budget does not spell out concrete measures to control price rise or cushion ordinary families from economic pressure.
Rahul Gandhi Highlights Jobs, Manufacturing, and Farm Distress
Leader of Opposition Rahul Gandhi echoed these concerns, describing the Budget as disconnected from the realities faced by millions of Indians. In a post on social media platform X, he listed what he called the most urgent crises confronting the country, including high youth unemployment, declining manufacturing activity, falling household savings, and ongoing distress among farmers.
He also pointed to capital outflows and potential global economic shocks, arguing that these risks have not been adequately factored into the government’s fiscal planning. Gandhi criticised the Centre for resisting course correction, saying the Budget overlooks warning signs that demand timely policy intervention.
Chidambaram Questions Economic Strategy and Fiscal Prudence
Former Finance Minister and senior Congress leader P Chidambaram, speaking at a press conference at the All India Congress Committee headquarters in New Delhi, said the Budget falls short on both economic strategy and statesmanship. He remarked that the government appeared to have set aside the findings of the Economic Survey and instead relied on broad slogans and abbreviations rather than detailed policy explanations.
Chidambaram noted that the revenue deficit has remained unchanged at 1.5 percent, suggesting limited progress toward fiscal consolidation. While he acknowledged that borrowing to support spending is not inherently problematic, he argued that consolidation should proceed at a faster and more decisive pace than currently projected.
Concerns Over Employment Schemes and Spending Plans
Raising questions about employment generation, Chidambaram highlighted the government’s spending on rural job programmes. He pointed out that the existing rural employment scheme provides an average of around 50 days of work annually at an expenditure of approximately ₹88,000 crore.
In this context, he questioned how the government plans to deliver its promise of 125 days of employment under the new VB-G RAM G Act, which is set to replace the previous scheme, with an allocation of only ₹95,000 crore. He said the figures raise doubts about the feasibility of the commitment.
Fiscal Deficit Targets and Capital Expenditure Under Scrutiny
Chidambaram also referred to revised estimates showing that the fiscal deficit for the current year has remained aligned with the earlier budgeted figure of 4.4 percent. For 2026–27, the government projects a reduction of just 0.1 percent of GDP, which he described as marginal.
He further argued that capital expenditure has declined, with cuts affecting sectors and programmes that directly impact ordinary citizens. According to him, reduced investment in these areas undermines the goal of job creation and long-term growth.
Trade Pressures and Unaddressed Global Risks
The Congress leader said the Budget overlooks several challenges outlined in the Economic Survey, including external pressures such as penal tariffs imposed by the United States. He warned that these measures have increased stress on manufacturers, particularly exporters, and are compounded by prolonged global trade disputes.
Rahul Gandhi reiterated that the Budget does not adequately respond to these domestic and international pressures, maintaining that key concerns around employment, manufacturing slowdown, and farmer welfare remain unresolved.