Chidambaram criticises Budget 2024, questions Modi govt’s ‘too little’ response to unemployment crisis | Mint

Budget 2024: Former Union Finance Minister and Congress leader P Chidambaram remarked that the Union Budget 2024-25 presented by Nirmala Sitharaman is a ‘virtual form’ of the Congress manifesto for the 2024 Lok Sabha elections.

“She (Nirmala Sitharaman) has virtually adopted the ideas contained in our proposals for the Employment-Linked Incentive (ELI) scheme, the Apprenticeship Scheme providing allowance to trainees and abolition of angel tax. I wish she had adopted many more ideas from the Congress manifesto,” Chidambaram said at a press conference.

The Union Budget 2024 presented by Finance Minister Nirmala Sitharaman on Tuesday, July 23, ensures a boost to jobs, especially for the youth entering the workforce.

Chidambaram analysed some aspects of the Union Budget in his first reaction to Nirmala Sitharaman’s seventh consecutive budget. In his remarks, Chidambaram called the Narendra Modi government ‘completely ignorant’.

Unemployment

Congress leader P Chidambaram, citing CMIE data, said India’s unemployment rate is 9.2 percent. Referring to recent events, Chidambaram also said that ‘lakhs of candidates apply and take exams or give interviews for a few dozen vacancies or a few thousand posts.’

The Congress leader said that the Modi government’s action on India’s unemployment rate in the third quarter was ‘very little’. He also said that the budget allocation will have ‘very little impact’ on the grave unemployment situation.

Chidambaram said, “The claim that the schemes announced by the Finance Minister will benefit 290 lakh people is highly exaggerated.”

Nirmala Sitharaman announced that the central government will give one month’s salary to the youth joining the first job. This amount will be given as provident fund contribution. She said that this move will benefit 210 lakh youth.

Salary

Chidambaram highlighted stagnant wages adjusted for inflation over the last six years. From 2017-18 to 2022-23, the average monthly income was ₹12,800 for self-employed individuals, 7,400 rupees for temporary workers, and 19,750 for regular wage workers. He stressed the need to establish a uniform minimum wage To effectively eliminate income inequalities, income at the rate of Rs 400 per day will be ensured in all types of employment.

“Some relief has been given to taxpayers falling in the 0-20 per cent tax slab but no relief has been given to the poor sections of the society – I repeat, no relief has been given – especially those who do not pay taxes, daily wage workers and casual/daily labourers,” the Congress leader said.

“Workers are not paid proper minimum wages,” Chidambaram said.

inflation

Chidambaram highlighted India’s current economic challenges, citing wholesale price index-based inflation at 3.4%, consumer price index-based inflation at 5.1% and food inflation at 9.4%. He criticised the Modi government’s approach to inflation, calling it ‘reckless’ and expressing doubts over its commitment to solving the issue.

Chidambaram also questioned the government’s 8.2% GDP growth forecast for 2023-24, raising concerns over the deflator used in the calculation, which economists have disputed. He stressed that addressing inflation remains a key priority despite the reported economic growth rates.

Nirmala Sitharaman on Tuesday said India’s inflation remains low, stable and moving towards the target of 4 per cent. “Core inflation (non-food, non-fuel) is currently at 3.1 per cent. Steps are being taken to ensure adequate supply of perishable goods to the market,” Sitharaman said while presenting the Union Budget on Tuesday.

Education

Regarding India’s education system, Chidambaram criticised NEET and the “scam-ridden National Testing Agency”. He also criticised BJP leader Nirmala Sitharaman for completely eliminating any mention of education in Budget 2024.

“The government is adamant on NEET, which, you will recall, is an exam at the end of schooling. Interestingly, there are protests against BE 1,16,417 crore rupees were spent on education, the government has only 1,08,878,” Chidambaram slammed.

Health care

Chidambaram, a former finance minister, highlighted serious issues in India’s healthcare sector, saying out-of-pocket expenditure, which accounts for 47% of total health expenditure, is still at a high level. He criticised the Union Budget 2024 and Finance Minister Nirmala Sitharaman for ignoring the shortage of medical staff, equipment and the government’s cuts in healthcare expenditure – which is 0.28% of GDP and 1.9% of total expenditure.

Chidambaram also said that contrary to the budget estimates Only 88,956 crores Of this, Rs 79,221 crore was spent, highlighting serious concerns in public healthcare financing.

Firepath

Chidambaram also said that Nirmala Sitharaman failed to mention the Agneepath scheme or pay heed to the demand of several political parties that the scheme should be scrapped.

The Congress leader said, “The agitation to cancel the Agneepath scheme will continue.”

Farmers protest

Farmers are protesting over demands including a legal guarantee for the Minimum Support Price (MSP) announced for agricultural produce, which the Congress had promised in its manifesto. Chidambaram pointed out the lack of response from the government and sought feedback from farmers on the matter.

Education Loan

Chidambaram highlighted the issue of large-scale student loan defaults due to high unemployment, and called on the government to consider a one-time waiver of outstanding education loans.

He expressed disappointment over the government’s focus on new education loans without paying attention to relief measures for existing borrowers who are facing acute unemployment challenges.

“But what about the huge burden of unpaid education loans?” the Congress leader asked.