Former Finance Minister P Chidambaram on Saturday didn't hold back in his critique of the Budget 2025-26, accusing the government of neglecting key sectors, particularly the Indian Railways. "The railways have been shortchanged,” he said, pointing to what he described as an inadequate budgetary allocation that fails to keep pace with inflation or the sector’s growing needs.
Breaking down the numbers, Chidambaram highlighted the minimal increase in railway expenditure: BE 2024-25: Rs 2,06,961 crore; RE 2024-25: Rs 2,12,786 crore; BE 2025-26: Rs 2,13,552 crore. “The increase of a paltry Rs 766 crore in 2025-26 will not even account for inflation,” he said. “The allocation will be less than last year’s in real terms.”
The Congress leader's remarks come despite Finance Minister Nirmala Sitharaman’s assertion that public spending on capital expenditure remains strong, with a focus on its multiplier effect.
Chidambaram’s criticism extended beyond the railways. He accused the government of abandoning flagship programs like POSHAN, Jal Jeevan Mission, NSAP, PMGSY, Crop Insurance Scheme, Urea Subsidy, and PM Garib Kalyan Anna Yojana — initiatives once launched with much fanfare. “The government has lost faith in programmes announced in previous budget speeches. The government’s capacity has significantly diminished,” he said.
Turning to employment and skill development, Chidambaram claimed the government had deceived the youth with schemes like PLI, the New Employment Generation Scheme, and Skill India. “Against a BE 2024-25 of Rs 26,018 crore, the actual expenditure will be only Rs 15,286 crore,” he noted, suggesting a wide gap between promises and delivery.
He was equally critical of the government’s approach to economic policy, alleging that both the Prime Minister and Finance Minister ignored sound advice from the Chief Economic Adviser. “The CEA’s call was clear: ‘Get out of the way.’ Instead, the budget is packed with new schemes beyond the government’s capacity,” Chidambaram said, adding that he counted at least 15 new schemes and 4 new funds.
“The FM is walking on the worn-out path. She is not willing to break free as we did in 1991 and 2004. She is not willing to de-regulate. She is not willing to get out of the way of the people, especially entrepreneurs, MSMEs, and start-ups. The bureaucracy will be happy with this budget,” he remarked.
Chidambaram concluded on a pessimistic note about India’s growth prospects, stating, “The economy will trudge along on the old path and deliver no more than the usual 6 or 6.5 percent growth in 2025-26. That, in our view, is a government with no new ideas and no will to reach beyond its grasp.”
While Sitharaman defended the budget’s fiscal prudence, emphasizing sustained capital expenditure, Chidambaram’s sharp critique reflects growing skepticism over whether the government’s allocations can meet the country’s ambitious development goals.