'Not aware of context, can't comment': Chidambaram on Rahul Gandhi's 'dead economy' jibes at government

Former Finance Minister P Chidambaram on Sunday declined to comment on party leader Rahul Gandhi's "dead economy" jibes at the government over its handling of Indian economy and said he was not aware of the context in which the remarks were made.

Answering query about "dead economy" remark made by US President Donald Trump in July last year and later by Rahul Gandhi, Chidambaram asked "if dead economy the subject matter of today's budget.

"The context in which US President Donald Trump made that comment, and the context in which Mr. Rahul Gandhi made the comment, I am not aware. So I can't comment on either statement. Ask me about the budget, and I will tell you. This is a budget without an economic strategy, without economic statesmanship," he said.

The Congress leader said the Union Budget presented by Finance Minister Nirmala Sitharaman in Parliament "failed the test of economic strategy and economic statesmanship."

Chidambaram said he is not sure if the Finance Minister and the government read the Economic Survey 2025-26 and even if they have, they have decided to discard the challenged and fall back on "their favourite pastime of throwing words at the people".

"Every pre-budget commentator and writer, and every student of economics, must be astonished by what he or she heard in the Finance Minister's speech to Parliament today," Chidambaram said.

"I accept that a Budget is more than a statement of annual revenues and expenditure. In current circumstances, the Budget speech must lay out a narrative that addresses the major challenges outlined in the Economic Survey released a few days ago. I am not sure if the government and the Finance Minister had read the Economic Survey 2025-26. If they had, it appears they have decided to discard it completely, and fall back on their favourite pastime of throwing words--usually acronyms--at the people," he added.

Chidambaram said he can count at least 10 challenges identified by the Economic Survey and many knowledgeable experts.

"The penal tariffs imposed by the United States have created stress for manufacturers, especially exporters; protracted trade conflicts that will weigh on investment; the growing trade deficit, especially with China; the low Gross Fixed Capital Formation (approx. 30 per cent) and the reluctance of the private sector to invest; the uncertain outlook for the flow of FDI (foreign direct investment) into India and the persistent outflow of FPI for the last several months," he said.

"The agonisingly slow pace of fiscal consolidation and the continued high fiscal deficit and revenue deficit, contrary to the FRBM.

The persistent gap between officially announced inflation numbers and the ground realities in terms of bills for household expenditure, education, healthcare and transport; the closure of lakhs of MSMEs and the struggle for survival of the remaining MSMEs; the precarious employment situation, especially youth unemployment and growing urbanisation and the deteriorating infrastructure in urban areas (municipalities and corporations," he added.

Chidambaram said none of this was addressed by the Finance Minister's speech.