Budget a let-down like by no means earlier than, farm sector has been shortchanged: Chidambaram

New Delhi: Alleging that Finance Minister Nirmala Sitharaman has “deceived the people, especially the poor” within the union price range offered on Monday, Congress chief P Chidambaram mentioned farm sector has been shortchanged, the fiscal state of affairs “is in a mess” and the federal government has proven its “unconcealed desire to sell-off all public sector banks”.
Addressing a press convention right here, he mentioned there was no point out of defence within the price range speech and the “mind-boggling figure” of Rs 223,846 crore for heath was “a conjurer’s trick”. “The budget was a let down like never before. This budget, like the previous one, will unravel sooner than you think,” he mentioned.
The former Finance Minister mentioned the Congress had listed “two non-negotiables” and the “government has miserably failed the people of this country”.
“She deceived the people of India, especially the poor, the working class, the migrants, the farmers, the industrial units that had been closed down permanently, and those who had lost their jobs, both regular and informal, and are still looking for jobs,” he mentioned.
“She deceived those who were listening to her speech, especially the MPs, who had no clue that she had imposed cesses on a large number of products including petroleum and diesel: Rs 2.50 on petrol per litre and Rs 4.00 on diesel per litre is a cruel blow to the average citizen, including the farmers,” he added.
Chidambaram mentioned it was “a vengeful act” in opposition to the 1000’s of farmers who took out the longest tractor rally in historical past. “It was also a cruel blow to federalism because the states do not get a share of the revenue from cesses”.
“She didn’t point out Defence in any respect, as if the Chinese had vacated occupied Indian territory. She didn’t point out that Defence expenditure in 2021-22 will see no rise. It is flat at Rs 3,47,088 crore, nearly the identical because the Rs 3,43,822 crore within the present yr.
He mentioned the Finance Minister gave out “a mind-boggling figure of Rs 223,846 crore for heath, a breathtaking ‘rise’ from the BE of the current year of Rs 94,452 crore”.

“As I had warned, it was a conjurer’s trick. She added the one-time cost of vaccination (Rs 35,000 crore) and the Finance Commission grants amounting to Rs 49,214 crore. She also included the allocations to the Department of Water and Sanitation. Shorn of these add-ons, the allocations for Health were Rs 72,934 in 2020-21 and Rs 79,602 crore in 2021-22. Given inflation, the increase is practically nil,” he mentioned.
“However, on page 10 of the Budget at a Glance, the two numbers are Rs 82,445 crore and Rs 74,602 crore — which means a reduction in expenditure from the level in the current year. What kind of additional health infrastructure can be built with this parsimonious allocation?” he requested.
He mentioned fiscal numbers present that “the fiscal situation is in a mess” and income deficit (7.5 per cent) and the fiscal deficit (9.5 per cent) within the present yr have exceeded each prediction, together with that of presidency.
“In 2021-22 the government estimates it will borrow about Rs 3.42 lakh crore less, but nobody is willing to believe the government. The ‘borrowing’ number has been under-stated by assuming that there will be disinvestment revenues of Rs 1.75 lakh crore. The record of this government on disinvestment is poor. The government has also assumed that tax revenues will increase by 15 per cent — another questionable assumption,” he mentioned.
The Congress chief mentioned that income deficit of 5.1 per cent and financial deficit of 6.8 per cent for 2021-22 “will send alarm signals to the rest of the world, especially the investors and international lenders”.
He mentioned there was an enormous expectation that there will likely be a big enhance in authorities expenditure to offset sluggish personal funding and personal consumption.
“The numbers show that total government expenditure will see a paltry rise from Rs 34,50,305 crore to Rs 34,83,236 crore.”
He mentioned the price range allocation for ‘Agriculture and Allied Activities’ has been diminished from Rs 1,54,775 crore (BE) to Rs 1,48,301 crore (BE). “Of the full expenditure, the proportion has been diminished from 5.1 per cent to 4.3 per cent.
Chidambaram mentioned price range allocation for Market Intervention Scheme, Price Support Scheme and PM Kisan Samman Nidhi has been diminished.
He alleged that MSMEs “were dismissed” in a single sentence with an allocation of Rs 15,700 crore. “This is like providing a fistful of oats to a hungry elephant. Nothing was mentioned about providing liberal, low-interest loans, working capital or moratorium.”
He mentioned a meagre sum of Rs 20,000 crore has been set aside for the recapitalization of Public Sector Banks, when the requirement is a number of instances extra.

“At the same time, the government intends to privatize two PSBs. The intent of the government is clear: let the PSBs bleed slowly so that they can all be privatized in the short term. Let us see the reaction of the public to this unconcealed desire to sell-off all public sector banks.”
Referring to tax modifications, he mentioned every one of many measures introduced by Sitharaman unwell profit solely the taxpayers among the many richer lessons. The minister mentioned a number of GST charges stay and “saga of protectionism continues” when it comes to tariffs.
He mentioned the Finance Minister has paid particular consideration to election-bound states however folks realise that solely outlays had been introduced and precise expenditure will occur solely after the schemes are authorised.
Referring to Sitharaman’s remarks about “like never before” price range, he mentioned her mandate was to current an annual assertion of income and expenditure for 2021-22.
“What she did, however, was to estimate expenditure over two years or three years or four years or, in one case, over 5 years,” he mentioned. (ANI)