Union Budget 2025 | Challenges facing Indian economy neglected: Left parties

'While the Economic Survey shows the desperate plight of India's labour force, this budget with its emphasis on cutting government expenditures while giving concessions to rich will only increase the huge inequalities in India,' the CPI(M) said.

New Delhi: The Union Budget has neglected the challenges facing the Indian economy and not provided any relief to the poor reeling under the pressure of high inflation, stagnated income and rising unemployment, Left parties said on Saturday.

In a statement issued here, the politburo of the Communist Party of India (Marxist) said instead of addressing the root cause of the demand problem being faced by so many sectors of the economy and the lack of purchasing power for large sections of the population because of mass unemployment and shrinking wages, the BJP-led Centre is trying to stimulate the economy by giving tax cuts to a small minority with higher incomes even as expenditures are cut.

"While the Economic Survey shows the desperate plight of India's labour force, pointing out the decrease in earnings over the last five years, this budget with its emphasis on cutting government expenditures while giving concessions to the rich will only increase the huge inequalities in India," the CPI(M) said.

It added that despite claims of helping the middle class by raising the tax exemption limit to Rs 12 lakh, the quantum of benefit from these changes in personal income taxes accruing to the middle class will actually be small, compared to the benefits accruing to the really wealthy class of Indians who account for less than 1 per cent of the country's population.

"More importantly, the government has chosen not to increase the rates of taxation at higher income slabs, which could very well have been combined with a reduction in the tax burden of the lower-middle class," the party said.

"Instead of mobilising resources by taxing the rich and the big corporate houses and pushing up public investment that would help generate employment and ensure a minimum wage for our people, it has chosen to do the opposite.... It is therefore a budget by the rich for the rich," the CPI(M) added.

The Left party pointed out that the budget papers reveal that in the last one year, the government actually spent approximately Rs 1 lakh crore less than what the budget had promised.

It said food subsidies, agriculture and allied activities, education, rural development, social welfare, urban development -- all have faced budget cuts and the budgeted figures for 2025-26 are almost the same as in 2024-25.

"The hypocrisy of the government is symbolised by its measly allocations for a right which is a lifeline for the rural poor, the MGNREGA. The allocations have stagnated at Rs 86,000 crore even as the demand has grown," the CPI(M) said.

The politburo called upon all party units to mobilise people and organise protests against this "anti-people" budget of the Narendra Modi government.

The Communist Party of India (CPI) claimed that the budget has neglected the challenges facing the Indian economy.

"Rising unemployment, inflation, increasing inequality and regional disparities are some of the major issues faced by the Indian people but the budget fails to address them. Already the economy is in a bad shape and the value of the Indian rupee has fallen to an unprecedented low level. Foreign debt is increasing. Social sector and welfare of the marginalised people are neglected as schemes like MGNREGA are not given importance and there is no adequate allocation on education, health and social sector," the CPI said in a statement.

"Similarly, private partnership in the nuclear field and increasing private participation in every sphere of the economy will continue to ruin the economy.... The budget does not address the issues of pensions, social security and pressing issues like MSP demanded by farmers. It fails to address gender equality and social justice issues," the party said.

The Communist Party of India (Marxist-Leninist) Liberation said it was hoped that the government would deliver a budget that would provide some relief to the needy, but it has failed to course-correct itself from its pro-rich image.

"The actual budget belies all these presuppositions, with only the middle class getting some relief in direct taxes while workers, farmers and a large section of toiling people are left to struggle with no major announcements for relief either in form of cut in GST on essentials nor through welfare measures," the CPI(ML) said.

"The budget estimates of past year 2024-25 on central-sector schemes and centrally-sponsored schemes was Rs 20,22,154 crore but the revised estimates of actual expenditure are pegged at Rs 19,28,176 crore, down by Rs 93,978 Crore," it added.

The Left party also said the allocations on rural schemes like the MGNREGA are less than expected.

"The budget allocations for schemes like MGNREGA, Gram Sadak Yojana, scholarship for Scheduled Castes are less than expectations. Expenditure on health, women and child development etc. has not increased as was needed. The budget allocation for the Department of Food and Public distribution for next year is also less," the CPI(ML) said.

It also pointed out that despite the budget announcements for Bihar, the state's demand for a special status remains pending.

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Union Budget 2025 | Nirmala Sitharaman, as Finance Minister, presented her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', the Modi govt gave income tax relief for those making up to Rs 12 lakh per year in salaried income. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.