Former finance minister and Congress leader P Chidambaram opened the debate on the budget in the Upper House on Monday with scathing remarks on the state of the economy. He alleged the suggestions of the Economic Survey have been ignored.
“I am afraid this budget is cautious, parsimonious, forgetful of the past year and this will vanish. Another minister and another deal is occupying the frontpages. The FM and the budget have vanished. This is a forgettable budget which has been prepared by a finance minister who forgot her promises made in this House last year,” Chidambaram said.
He listed four challenges facing the economy: No increase in capital investment, high unemployment, slow growth rate and dismal pace of fiscal consolidation.
On capital investment, Chidambaram said the gross fixed capital formation is stuck at 30% of GDP for 12 years while the net FDI in 2024-25 has collapsed to less than .09%. Private investment has been stagnant. Capex has been cut by ₹1,44,376 crore in 2025-26 and state capex reduced by ₹1,19,041 crore.
He attacked the government on high unemployment, stating youth unemployment stands at 15% and less than 25% of the workforce has regular jobs.
“The third challenge is slow growth rate. Nominal GDP growth fell from 12% in 2023-24 to 9.8% in 2024-25 and further to 8% in 2025-26,” Chidambaram said.He also expressed concern over the slow fiscal consolidation. Chidambaram slammed the government on ministries failing to spend funds allocated to them in the last budget and the sizable cut in the allocations to agriculture, rural development and jal shakti ministries in this year’s budget.
He emphasised defence expenditure has been reduced to “an all-time low” of 1.6% of GDP and 11.4% of the total expenditure.
BJP leader Arun Singh praised the PM for a budget that “strengthens the aspirations of people”. He mentioned reduction in current account deficit, increase in mobile export, more investment in defence, high forex, low inflation, more funds for G Ram G and railways.
