“A Budget That Fails the Test of Economic Strategy”: P Chidambaram Slams Union Budget 2026

Delhi: Veteran Congress leader P. Chidambaram on Sunday delivered a scathing critique of Union Budget 2026–27, calling it fiscally unambitious and falling short on key economic challenges. Speaking at the AICC headquarters in Delhi, the former Finance Minister questioned both the government’s priorities and the strategic direction of the Budget.

Chidambaram claimed that the Budget had cut allocations for critical sectors and reduced capital expenditure, undermining its effectiveness in driving growth. He said, “I am not sure whether the government has read the Economic Survey. If they have, then it appears that they have decided to discard it completely and fall back on their favourite pastime of throwing words usually anachronyms at the people. I can count at least 10 challenges identified by the Economic Survey and many acknowledged knowledgeable experts.”

Highlighting the government’s tendency to announce multiple schemes and initiatives without follow-through, Chidambaram remarked, “Sitharaman is not tired of adding to the number of schemes, programmes, missions, institutes, initiatives and all. Many of these schemes will likely be forgotten and vanish by next year.” He urged the government to clearly demonstrate how the Budget would create employment opportunities for the masses.

On taxation, Chidambaram said that while minor changes in income tax rates and indirect taxes have been made, they largely affect only a small portion of the population. “Months after the passing of the Income Tax Act, 2026, which will come into force on 1 April, the Finance Minister has tinkered with some rates. While the impact of the numerous minor changes has to be examined carefully, it must be remembered that the overwhelming majority of the people have no concern with income tax or income tax rates,” he noted.