Dravida Munnetra Kazhagam (DMK) MP Kanimozhi criticized Union Finance Minister Nirmala Sitharaman on Tuesday for failing to address key concerns during the Lok Sabha debate on the Union Budget 2025-26. She accused the minister of delivering a politically motivated response instead of answering the crucial questions raised by MPs.
Kanimozhi’s Criticism
Speaking to media, Kanimozhi said: “I don’t think it was a reply to the discussion which happened in Parliament because a lot of pertinent questions were raised. But the Finance Minister actually was replying to particular state governments and making it very political. So, that is what she was targeting at. She did not reply to many of the issues which were raised.”
Opposition Voices Discontent
Other opposition leaders also expressed their dissatisfaction with Sitharaman’s budget response.
- Samajwadi Party (SP) chief Akhilesh Yadav criticized the government for allegedly failing to allocate funds for the Maha Kumbh, which is taking place after 144 years.
- Revolutionary Socialist Party MP NK Premachandran called the Finance Minister’s reply “totally disappointing”, alleging that states were not receiving the promised share of funds.
Premachandran told media: “Most of the issues which we have raised have not been answered. The statement she has given about state allocations is factually incorrect. While she claims that allocations are increasing, the proportion of funds states receive from the gross tax revenue is actually declining. Though the Finance Commission has awarded 41 per cent of the divisible pool to the states, they are receiving only 33 per cent. This is a decline…”
Sitharaman Defends Budget Allocations
Responding to the criticisms during the Lok Sabha debate, Finance Minister Nirmala Sitharaman defended the government’s capital budget allocations, emphasizing that borrowed funds were being utilized solely for capital expenditure and infrastructure development.
She stated:
“The effective capital expenditure for 2025-26 is projected at ₹15.48 lakh crore, compared to ₹13.18 lakh crore in the revised estimates of 2024-25. This accounts for 4.3 per cent of GDP, while the fiscal deficit target is 4.4 per cent.”
Sitharaman clarified that capital expenditure includes:
- Core capital outlays
- Grants-in-aid to states for capital asset creation
Though grants-in-aid are categorized as revenue expenditure, they contribute to the development of capital assets in the states, she explained.
“The difference between the two is minimal. The government is using almost the entire borrowed resources for financing effective capital expenditure,” she added.
Government’s Borrowing Strategy
Addressing concerns over borrowing, Sitharaman assured that funds were being utilized efficiently:
“The borrowings are not going towards revenue expenditure, committed expenditure, or any other such purposes. They are being used solely for creating capital assets. So, in effect, the government intends to use about 99 per cent of borrowed resources to finance effective capital expenditure in the upcoming 2025-26 financial year.”
Conclusion
While the government maintains that the Union Budget 2025-26 prioritizes capital development, opposition leaders argue that state allocations remain insufficient and that the Finance Minister failed to address pressing concerns during the debate. The budget discussions continue to fuel political debates ahead of the upcoming fiscal year.