Congress leaders P. Chidambaram and Jairam Ramesh address the media on the Union Budget at the AICC headquarters in New Delhi on February 1, 2026.
| Photo Credit: R.V. Moorthy
The Congress on Sunday (February 1, 2026) claimed that the Union Budget has “failed” the test of economic strategy and statesmanship, with former Finance Minister P Chidambaram saying that the Budget speech did not lay out a narrative to address the challenges mentioned in this year’s Economic Survey.
Addressing a press conference at the All India Congress Committee (AICC), Mr. Chidambaram listed 10 major challenges flagged by the Survey and economic experts. He mentioned the impact of penal U.S. tariffs on exporters, protracted global trade conflicts, a widening trade deficit with China, low gross fixed capital formation of around 30%, and the private sector’s reluctance to invest.
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He also highlighted the uncertain outlook for foreign direct investment into and persistent outflow of foreign portfolio investors, slow fiscal consolidation in violation of FRBM targets, a disconnect between official inflation data and household expenses on essentials such as education, healthcare and transport, the distress faced by MSMEs, widespread closures, unemployment among youth —deteriorating urban infrastructure amid rapid urbanisation.
“None of this was addressed by the Finance Minister’s speech,” he said at a joint press conference with party colleagues, Jairam Ramesh and Amitabh Dubey.
Union Budget 2026 political reactions LIVE
Mr. Chidambaram criticised the government’s financial management in 2025-26, noting shortfalls of ₹78,086 crore in revenue receipts and ₹1,00,503 crore in total expenditure. Capital expenditure, he said, was cut by ₹1,44,376 crore, with the Centre’s capex falling from 3.2% to 3.1% of GDP, without any explanation.
He flagged sharp cuts in revenue expenditure affecting rural and urban development, social welfare, agriculture, education and health, and termed the drastic reduction in allocations for the Jal Jeevan Mission “cruel”.
“The most serious criticism of the Budget speech is that the Finance Minister is not tired of adding to the number of schemes, programmes, missions, institutes, initiatives, funds, committees, hubs, etc. I counted at least 24,” he said, wondering “how many of them will be forgotten and vanish by next year”.
“Our verdict is that the Budget speech and the Budget fail the test of economic strategy and economic statesmanship,” Mr. Chidambaram added
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Congress president Mallikarjun Kharge said the Union Budget lacked policy vision and political will as it failed to address inequality, jobs, farm distress, manufacturing, exports, social security and States’ financial stress. “Modi government has run out of ideas,’’ Mr. Kharge said, arguing the document offered neither solutions nor credible reform signals.
Offering his reaction on social media platform X, former Congress chief and Leader of Opposition in the Lok Sabha Rahul Gandhi said, “Youth without jobs. Falling manufacturing. Investors pulling out capital. Household savings plummeting. Farmers in distress. Looming global shocks – all ignored. A Budget that refuses course correction, blind to India’s real crises”.
Published – February 01, 2026 03:06 pm IST
