Jobless growth only a UPA-era story, not now: FM

The finance minister accused the Opposition of misleading the house by saying that the government was slashing funds for welfare schemes to maintain a low fiscal deficit. Responding to former finance minister P Chidambarams remarks, describing the Budget as forgettable, Sitharaman said, There was a bit patronising comment, if I may be allowed to say it, the budget is forgetful of the past.

Finance Minister Nirmala Sitharaman on Thursday asserted that India is on a robust growth trajectory with low unemployment, dismissing concerns of ''jobless growth'' as a relic of the UPA era. Replying to the debate on the Union Budget 2026-27, she said the middle class is expanding, not being suppressed, and emphasised that higher taxes paid by individuals compared to corporates do not mean they are being burdened. She said the steps taken in the Budget are proof of the government's resolve to build a resilient and self-reliant India. On the Opposition criticism of slashing funds for welfare schemes, Sitharaman said the Centre's funds are not a ''free pool of cash'' that can be used at will, but are hard-earned contributions of every Indian citizen, which will not be allowed to be squandered. She said the funds are released only when needed, and not for the sake of increasing expenditure. ''We now have absolute transparency in the government spending process,'' the minister said. She also said that inflation in India was lower than in many emerging economies. ''I want to highlight the fact that inflation is at a historic low, even though growth remains high. There is no inflation crisis in India today. Inflation has been tamed and firmly anchored due to stability and the steps taken by the government,'' she said. ''The growth without jobs was a UPA-era story and not now.'' Refuting opposition parties' charge that middle-class people were paying higher taxes, the finance minister said, ''The conclusion made by the Opposition that the middle class was being sandwiched because personal tax collection exceeds the corporate taxes, that is fundamentally misdiagnosing the situation. There is no evidence of middle-class suppression''. Actually, she said, there is more evidence of middle-class expansion and formalisation, driven by the economic reforms undertaken in the last ten years. ''High personal income tax collection does not necessarily mean the middle class is being crushed,'' she said, adding that the economy was no longer narrow and confined to the elite, and the middle-class basket is widening. So, suppression of the middle class cannot happen when the tax base is widening, and the tax net itself is expanding, and people are coming on board voluntarily to pay taxes, the minister said. Between 2013-14 and 2024-25, Sitharaman said the number of taxpayers rose from 5.26 crore to 12.13 crore. Within the last 11 years, the number of income-tax payers has more than doubled, and this represents the largest structural expansion of the middle class in the country, she added. The finance minister accused the Opposition of misleading the house by saying that the government was slashing funds for welfare schemes to maintain a low fiscal deficit. She said that in the past, success was measured by how much was allocated, regardless of whether it was actually spent or not. But, this government has now ''absolute visibility'' on where it remains and where it gets spent or is lying idle. So, strictly, the money goes when it is required, and when it is utilised, she said, adding that the government ensures that the money is released only when the ground-level work demands. ''I would like to categorically state that there is no denial or stoppage of funds to any state or any scheme,'' the finance minister said. The minister asked the members to urge their state governments to participate in the central schemes. She also attacked the Congress, alleging that it sheds crocodile tears about rising debt and claimed that they ''want us to borrow more money and also release funds to the states''. ''The government cannot borrow excessively. That is a principle that guides us. The Congress is obsessed with outlays, but we say that we will give you money, but you have to give us results. The Congress is worried about expenditure, while we worry about the outcome,'' she said. Sitharaman said the government has sent Rs 48 lakh crore directly into the bank accounts of beneficiaries under various welfare schemes and has thus saved Rs 4.31 lakh crore from falling into wrongful hands. She also said that the country's labour market is going through a phase of structural change, as in 2017-18, the unemployment rate was 5.6 per cent, whereas in 2023-24, this rate has decreased to 3.2 per cent. In fact, the unemployment rate has decreased, she said. Sitharaman attacked the TMC-led West Bengal government, alleging that it does not implement welfare schemes financed by the Centre, depriving the benefits of such programmes for people of the state. The finance minister also took on the Congress and DMK for their charge that no big-ticket announcement has been made for poll-bound Tamil Nadu, as she listed out various budget proposals for the state. During the reply, Leader of Opposition Mallikarjun Kharge stated that Sitharaman mentions that the Tamil Nadu government has committed nearly Rs 4 lakh crore of debt. ''I want to ask if the minister is speaking about the Tamil Nadu budget or the Indian government budget,'' he said, adding that because the Tamil Nadu election will take place soon, she is mentioning things which have nothing to do with this House. ''This is not fair. I condemn this,'' Kharge said. Responding to former finance minister P Chidambaram's remarks, describing the Budget as ''forgettable'', Sitharaman said, ''There was a bit patronising comment, if I may be allowed to say it, the budget is forgetful of the past''. ''Budget is never forgetful of the past... if there is a glorious past, cherish it forever. Remember it every time. But if it is a tarnished past, I would like to learn from that past and not make mistakes again.'' ''So, we do not forget. This budget is not forgetful of the past. It remembers the fragile five days, it remembers the double-digit inflation days, it remembers the policy paralysis and also the scam-filled days. It remembers banks were forced to lend just with a phone call without doing any KYC.'' ''Deficits were kept high, and spending on capex was reduced,'' she added. Chidambaram had said, ''This is a forgettable budget. A forgettable budget, which has been prepared by a finance minister, who forgot her promises made in this House last year''.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)