02/02/2025
Budget ?
Union Budget 2025-26: A Betrayal of the Common People, Favors the Wealthy
Jammu, 01 Feb (CNS):- The Union Budget 2025-26 has been met with widespread criticism, with many calling it a cruel betrayal of the needs of the people of India. Instead of addressing the ongoing demand crisis and the lack of purchasing power due to mass unemployment and shrinking wages, the Modi government has chosen to stimulate the economy through tax cuts for the affluent while cutting crucial government expenditures.
The Economic Survey itself has highlighted the declining earnings of India’s labor force over the past five years. However, rather than implementing measures to generate employment and ensure fair wages, the government has opted to further deepen inequalities by reducing public spending while providing concessions to the rich. Instead of taxing big corporate houses and the wealthy to mobilize resources, the budget promotes private investment by handing over public assets and expenditure to them.
One of the major concerns is the government’s decision to allow 100% Foreign Direct Investment (FDI) in the insurance sector and push for the privatization of the power sector. Critics argue that this move serves the interests of the elite rather than the common citizen.
Declining Government Expenditure
Expenditure as a percentage of GDP has continued its downward trend, falling from 14.6% in 2024-25 to 14.2% in 2025-26. Furthermore, the government has failed to meet its own spending commitments, as evidenced by last year’s expenditure being approximately one lakh crore rupees lower than the promised budget.
In addition, the central government has drastically reduced transfers to states. Last year alone, Rs. 1,12,000 crores were cut from the budgeted figures, including Rs. 90,000 crores from centrally sponsored schemes and Rs. 22,000 crores from Finance Commission and other transfers. This pattern of expenditure cuts signals an erosion of federalism and a direct attack on state rights.
Neglecting Key Sectors
Crucial sectors such as food subsidies, agriculture, education, rural development, social welfare, and urban development have all suffered from budget cuts. The revised estimates for 2024-25 show a drastic reduction in capital expenditures, which fell short by nearly Rs. 93,000 crores.
For instance, food subsidies were initially budgeted at Rs. 2.05 lakh crores in 2024-25, but actual spending fell by Rs. 7,830 crores. This year’s budget allocation has further declined to Rs. 2.03 lakh crores. Similarly, education saw a provision of Rs. 1.26 lakh crores last year, but spending fell short by Rs. 11,584 crores. The new budget provides only a marginal increase of Rs. 14,596 crores—just a 2.3% rise, which, when adjusted for inflation, reflects no real increase at all.
Health, agriculture, and LPG subsidies have also faced similar cuts. The revised estimate for agriculture spending was Rs. 1.5 lakh crores, yet actual expenditure was Rs. 10,992 crores less. Meanwhile, the LPG subsidy has been slashed from Rs. 14.7 thousand crores last year to just Rs. 12 thousand crores in this budget.
Attack on Social Welfare Programs
The government’s approach towards social welfare has also drawn sharp criticism. The Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), a lifeline for millions of rural poor, has seen stagnation in allocations at Rs. 86,000 crores despite increased demand. This stagnation is seen as an assault on the legal right to 100 days of employment.
The long-standing demand for a Minimum Support Price (MSP) for farmers, critical in addressing agrarian distress and farmer suicides, has also been ignored in this budget.
Disregard for Marginalized Communities
The budget continues to marginalize Scheduled Castes (SCs), Scheduled Tribes (STs), and other vulnerable groups. The allocation for SCs has been cut by Rs. 27,000 crores, while STs have faced a Rs. 17,000 crore reduction. These figures are far below the prescribed proportional allocation based on population shares. The North Eastern region has also been adversely affected, with allocations being slashed by Rs. 13,000 crores. Welfare of children and the gender budget have also seen cuts.
Middle-Class Tax Exemptions—A Deceptive Benefit
Much is being made of the government’s claim to help the middle class by raising the tax exemption limit to Rs. 12 lakh. However, experts argue that the real beneficiaries of these income tax concessions are the wealthiest 1% of Indians. The government is set to lose Rs. 1 lakh crores in revenue due to these tax cuts, most of which will benefit the upper-income groups rather than the middle class.
A Budget Favoring the Rich
The Union Budget 2025-26 reflects the economic policies of a government that prioritizes corporate interests over the needs of the common people. Despite overwhelming evidence that cutting expenditures and lowering taxes on the wealthy has failed to generate employment and investment growth, the government continues to push this agenda. Economic growth remains slow due to demand constraints, yet the budget does little to address this pressing issue.
The Polit Bureau of the Communist Party of India (Marxist) (CPI-M) has condemned the budget as anti-people and has called for nationwide protests against what they describe as a government that has repeatedly failed the working class while protecting the wealthy elite.(CNS)
