Senior Congress leader and former Finance Minister P. Chidambaram on Monday launched a sharp attack on the Union Budget 2026–27 in the Rajya Sabha, calling it "forgettable" and accusing the government of failing to address India's core economic challenges, even as the Budget Session of the Uttar Pradesh Assembly began amid uproar by the Samajwadi Party.
Flagging concerns over employment, Chidambaram said youth joblessness stands at 15 per cent, while less than 25 per cent of India's workforce is in regular employment. He questioned whether the government had even read the Economic Survey, arguing that its warnings on unemployment, capital investment and slowing growth were ignored in the Budget.
He pointed out that gross fixed capital formation remains stuck at 30 per cent of GDP, net foreign direct investment has fallen to below 0.09 per cent, and private investment continues to stagnate despite cash-rich companies. He also criticised the cut of Rs 44,000 crore in capital expenditure for 2025–26, saying the government offered no explanation.
On employment generation, Chidambaram said manufacturing remains stagnant at 16 per cent of GDP, with only 1.95 crore people employed in factories in a country of 144 crore. He termed the Prime Minister's Internship Scheme a failure, noting that only 6,000 candidates were retained out of 1.65 lakh offers, and demanded accountability from the Finance Minister.
Mocking the government's "Reform Express", he said growth momentum was slowing, with nominal GDP growth projected to fall to 8 per cent in 2025–26. He also criticised the slow pace of fiscal consolidation and claimed the Budget was sustained mainly by expenditure cuts and a large RBI dividend, rather than higher revenues.
Meanwhile, the Budget Session of the Uttar Pradesh Assembly opened amid loud protests by Samajwadi Party MLAs, who raised "Governor Go Back" slogans during Governor Anandiben Patel's address to the joint sitting of the House. Despite the disruption, the Governor continued her speech, stating that nearly six crore people in the state had been lifted out of poverty.
SP legislators held placards alleging "destruction in the name of development" and protesting issues related to governance, healthcare and social justice. Protests were also staged outside the Assembly complex, while Chief Minister Yogi Adityanath said the state's economic survey would be tabled later in the day, claiming Uttar Pradesh had emerged as a strong contributor to the national economy.
The parallel developments underscored rising political friction at both the Centre and state levels as Budget debates intensify.
(With inputs from IANS)
