Blurb: Former finance minister P Chidambaram strongly criticised the Union Budget, saying it ignores jobs, investment, and growth challenges facing India

New Delhi

Speaking in the Rajya Sabha on Monday, Congress leader and former Finance Minister P Chidambaram described the Union Budget 2026-27 as cautious, parsimonious, and forgettable, claiming it is already fading from public memory. He said the government appeared unwilling to confront hard truths highlighted in the Economic Survey, questioning whether ministers had even read the lengthy document.

Chidambaram pointed to three major problems identified in the survey, capital investment, unemployment, and slowing growth, and argued the Budget failed on all three fronts. He noted that gross fixed capital formation remains around 30 per cent of GDP, while net foreign investment has fallen sharply to negligible levels. Despite companies holding cash, private investment is weak, and capital spending was cut by Rs 0.44 lakh crore without clear reasons.

On jobs, he said youth unemployment is 15 per cent, regular jobs cover less than a quarter of workers, and factory employment remains tiny. He criticised the PM Internship Scheme, saying most offers were rejected and only a few thousand interns were finally retained. Chidambaram accused the Budget of forgetting promises, pointing to low funding or cuts in defence, science, welfare, and urban development.

On growth, he said nominal GDP growth is slowing steadily, while official real growth numbers appear overstated and unconvincing. He added that fiscal repair is weak, with only marginal deficit reduction, and claimed the Budget survived mainly due to spending cuts and a large RBI dividend. He concluded the Budget lacks vision, avoids real problems, and will soon be forgotten as new issues dominate headlines. He urged the government to rethink priorities, invest boldly, create quality jobs, and restore confidence among workers, investors, and young citizens across the country.