New Delhi: Hitting out at the Union finance minister Nirmala Sitharaman, senior Congress leader and former finance minister P. Chidambaram said that the Budget presented on Thursday could not have been more removed from reality and people’s “concerns about life, livelihood and the growing inequality between the rich and the poor”.
Despite unprecedented levels of joblessness in India, he said, the finance minister did not even mention the words “unemployment, poverty, inequality or equity” in her speech.
He also pointed out that given the GDP estimate of Rs 273,07,751 crore, the real GDP should have grown in double digits but both Sitharaman and the economic survey put the GDP growth at only 7%.
“Will the government explain?” he asked.
“Please note that both capital expenditure of the Union government and the effective capital expenditure are lower than the Budget Estimates. So, what drove growth in 2022-23? We know that private investment is down, exports are down and private consumption is stagnant. So, how does the government explain the 7% growth in the current year,” Chidambaram said, adding that if the government’s figures are to be believed, the next two quarterly growth rates may slide to only 4-4.5%.
“For the whole year, therefore, the quarterly GDP growth rate is sliding: 13.5, 6.3, 4.2 and 4.0%,” he said.
He compared the budgetary estimates and revised estimates of 2022-23 to say that the “government is not spending what was promised on key schemes”.
Chidambaram further lashed out at the government for not giving relief to common people by reducing fuel prices, “irrational GST rates”, cement, fertilizers, indirect cesses, etc. Further, he said that the tax slabs will only benefit a small number of people who have opted for the new tax regime.
“…making the new tax regime the default option is grossly unfair and will rob the ordinary taxpayer of the meagre social security that he may get under the old tax regime,” he said.
“Who has benefited from this Budget? Certainly, not the poor. Not the youth looking desperately for jobs. Not those who have been laid off. Not the bulk of the taxpayers. Not the homemaker. Not the thinking Indians who are shocked by the growing inequality, the rise of the number of billionaires and the wealth being accumulated in the hands of the 1% of the population. Certainly, not you,” he said.
He further said that the budget doesn’t acknowledge the economic crisis that the world is facing today, and the government should clarify what it would do if the global recession hits India.
“What kind of burdens will that place on the people who are suffering owing to inflation and unemployment? There were no answers provided either in the Economic Survey or in the Budget Speech. This is a callous Budget that has betrayed the hopes of the vast majority of the people,” he said.
Also Read: Eight Charts to Make Sense of Budget 2023
Party leader Rahul Gandhi said the budget has no plans to create jobs, tackle price rises or stem inequality. He dubbed the Budget, which finance minister Nirmala Sitharaman said was the first of the ‘Amrit Kaal’ (golden age), as ‘Mitr Kaal’ (age of government’s friends).
‘Mitr Kaal’ Budget has:
NO vision to create Jobs
NO plan to tackle Mehngai
NO intent to stem InequalityAdvertisement1% richest own 40% wealth, 50% poorest pay 64% of GST, 42% youth are unemployed- yet, PM doesn’t Care!
This Budget proves Govt has NO roadmap to build India’s future.
— Rahul Gandhi (@RahulGandhi) February 1, 2023
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Earlier, Congress spokesperson Jairam Ramesh tweeted to say that the government spent much less than what was announced in the budget last year, and alleged that even this year, the Modi government is looking for “headline management”.
“Last year’s Budget drew applause for allocation towards agriculture, health, education, MGNREGA & welfare of SCs. Today the reality is evident. Actual expenditure is substantially LOWER than budgeted. This is Modi’s OPUD strategy of headline management—Over Promise, Under Deliver,” he tweeted.
Last year’s Budget drew applause for allocation towards agriculture, health, education, MGNREGA & welfare of SCs. Today the reality is evident. Actual expenditure is substantially LOWER than budgeted. This is Modi’s OPUD strategy of headline management—Over Promise, Under Deliver
— Jairam Ramesh (@Jairam_Ramesh) February 1, 2023
