Former Finance Minister P Chidambaram Criticizes Government’s Stance on Inflation and Employment Initiatives

Former finance minister P Chidambaram criticized the government for downplaying inflation and failing to generate employment through existing schemes like PLI. Initiating the budget discussion in Rajya Sabha, he questioned the efficacy of new proposals like the ELI scheme, while highlighting issues like income disparity and federalism concerns.

Former finance minister P Chidambaram sounded the alarm against the government's approach to inflation, indicating that every household is suffering from rising prices. At the Rajya Sabha's budget discussion for 2024-25, he questioned why the RBI hasn't reduced bank rates for 13 months if inflation is truly low.

Criticizing the employment-linked incentive (ELI) scheme, Chidambaram suggested it was proposed because the existing production-linked incentive (PLI) framework has not met employment targets. He accused the finance minister of borrowing from the Congress manifesto for the ELI proposal, dubbing it superficial.

Highlighting income disparity and the perceived neglect of states like Tamil Nadu and Odisha in the budget, Chidambaram argued that the government's federalism is selective. Other opposition members echoed his sentiment, citing unmet promises and insufficient budget allocations for critical sectors.

(With inputs from agencies.)