Budget Critique: Concerns Over Growth Engines and Public Welfare

In a Rajya Sabha debate, multiple MPs, including Congress' Jairam Ramesh, criticized the Union Budget for disproportionate emphasis on capital expenditure over private investment and public welfare. Concerns were raised about the impact on middle-class, agricultural subsidy cuts, and GST on essential services, while urging disaster declaration for Wayanad landslides.

In a spirited Rajya Sabha discussion, Congress MP Jairam Ramesh criticized the Union Budget, stating that the government has accelerated capital expenditure but private investment remains sluggish. He noted that private consumption and exports are also not growing quickly.

YSR Congress' V Vijayasai Reddy added that stock market investments have been disincentivized in the budget and called for public sector banks to refund fines collected for not maintaining minimum balances. He also urged making saving accounts zero-balance across the country.

Continuing the debate, Congress' Vivek K Tankha argued that the budget overlooks the middle class and reduces the fertilizer subsidy, questioning its pro-farmer stance. He lamented the shutdown of more than 6,800 train stations, which affects small vendors and students.

Further critiques came from Trinamool Congress' Dola Sen, who advocated for removing the 18 percent GST on life and medical insurance. AAP's Sanjay Singh remarked that the government consistently claims lack of funds when addressing loans for farmers, students, and vendors.

DMK's Kanimozhi N V N Somu and CPI(M)'s John Brittas also chimed in. Kanimozhi urged zero GST rates on essential medical equipment and medicines, while Brittas criticized the decentralization of federalism and highlighted the need for declaring Wayanad landslides as a severe calamity. He pointed to a 96 percent increase in central revenue from cess and surcharges from 2019-20 to 2023-24.

(With inputs from agencies.)