Budget for the rich, of the rich, by the rich, says P Chidambaram

The Opposition Congress on Thursday accused the government of presenting a disappointing Budget that caters only to a handful of rich and ignores the bulk of India that has silently suffered or is still suffering.

Participating in a debate on the Budget in the Rajya Sabha, senior Congress leader and former Finance Minister P Chidambaram said, "The sub-text is, this is a budget for the rich, of the rich and by the rich.... There is nothing for the poor people of India, who continue to suffer.... This is a budget for those one per cent who control 73% of India's wealth”.

"Every economist in the world has said we have to stimulate demand and the best way to stimulate demand is to put money in the hands of people. This government has failed on that account. I repeat the charge. You are still not learning the lessons of the last 36 months. I am afraid that as a result of your not learning the lessons, another 12 months will be lost and the poor will suffer and suffer greatly," he said.

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Chidambaram said the government is in denial about the slowdown in the economy and believed that the problem in the economy is cyclical and not structural.

He said that there was no demand in most parts of the country, including in developed states such as Tamil Nadu, where every other small shop has closed down and added that it was left to one's imagination how backward states like Uttar Pradesh, Bihar and Odisha must be coping.

"You have ignored the bulk of India. Who is this Budget for?" he asked, while saying that the incompetent management will undo the growth achieved and the borrowings will only be used to fill the huge craters in the economy.

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He also cautioned the government against boasting about expected double digit economic growth numbers next year, which he said were only mechanical and were based on an extremely low base of this year.

"Inflation next year will be at least five or six per cent.... The arithmetic I have says your growth will only be 9.4 or 8.4...which is a natural and mechanical growth after the coronavirus-induced slowdown. Do not boast about the numbers. It will take you two-three years to get to a stable GDP. Take the advices of well-meaning critics, address the structural issue of the economy and support the poor,” he said.