Chidambaram Critiques Budget 2024: Accuses Govt of Borrowing Congress Ideas but Falling Short

In a recent statement following the Budget Speech by the Finance Minister Nirmala Sitharaman, senior Congress Party leader P. Chidambaram took a dig at the centre acknowledging that some of the government’s budgetary proposals were inspired by the Congress’ Manifesto, particularly the Employment-linked Incentive (ELI) scheme, the Apprenticeship Scheme with an allowance for apprentices, and the abolition of the Angel Tax. However, he expressed disappointment that more of their ideas were not adopted.

Highlighting the country’s significant unemployment challenge, he cited the Centre for Monitoring Indian Economy (CMIE) report showing a national unemployment rate of 9.2 percent. He criticized the government's response as inadequate, arguing that the claim of benefiting 290 lakh people through new schemes was exaggerated.

On inflation, he noted the current rates of 3.4 percent (WPI), 5.1 percent (CPI), and 9.4 percent (food inflation), and criticized the Economic Survey’s assumptions on deflators, which he said cast doubt on the projected GDP growth rate of 8.2 percent. He lamented the government’s casual attitude towards inflation, stating that the Budget Speech did not instill confidence that the issue would be seriously addressed.

Regarding education, he pointed out the poor quality of school education and the central government’s lack of support in addressing these fundamental issues. He also criticized the NEET examination system and the National Testing Agency, noting a lack of response from the finance minister on these issues. Furthermore, he highlighted the government’s underspending in education against the Budget Estimates (BE).

In healthcare, he noted the quantitative growth but insufficient quality of public healthcare services. He mentioned the high out-of-pocket expenses and the shortage of medical professionals and equipment, criticizing the decline in central government healthcare expenditure.

He observed that wages had stagnated over the past six years, with significant disparities in earnings among self-employed workers, casual/daily laborers, and regular wage earners. He criticized the budget for not providing relief to non-taxpaying wage laborers and daily laborers, accusing the government of ignoring wage stagnation amid rising inflation.

He also addressed the ongoing farmers' protests, emphasizing the need for a legal guarantee for Minimum Support Prices (MSP) for agricultural produce, as promised in the Congress Manifesto. He noted the absence of a response from the government on this issue.

Regarding educational loans, he highlighted the plight of students struggling with unpaid loans due to massive unemployment. He criticized the budget for not addressing the demand for a one-time relief measure for unpaid educational loans, leaving many students and their families disappointed.

Lastly, he mentioned the demand from several political parties, including the Congress, to scrap the Agnipath scheme and revert to traditional recruitment methods for the Armed Forces, noting the government’s lack of response and the ongoing agitation to abolish the scheme.

Also Read: Budget 2024: Middle Class Gets Significant Boost with Education, Housing, and Tax Benefits