Leader of Opposition in Lok Sabha, Rahul Gandhi, launched a scathing attack on the Union government over the 2025-26 Budget, calling it a “band-aid for bullet wounds.” He criticized the government’s economic policies, stating that addressing the crisis requires a major shift in approach, which the current leadership lacks.
“A band-aid for bullet wounds! Amid global uncertainty, solving our economic crisis demanded a paradigm shift. But this government is bankrupt of ideas,” Gandhi posted on X.
Congress MP Jairam Ramesh also condemned the Budget, arguing that it fails to address key economic issues such as stagnant real wages, weak mass consumption, slow private investment, and a complex GST system. “The Budget does NOTHING to address these illnesses,” Ramesh wrote on X.
He acknowledged some relief for income taxpayers but questioned its broader impact on economic growth.
Bihar’s ‘bonanza,’ Andhra Pradesh ‘ignored’
Ramesh further pointed out that Bihar, where assembly elections are due later this year, has received a “bonanza of announcements.” Meanwhile, Andhra Pradesh, where the ruling Telugu Desam Party (TDP) is a key NDA ally, has been “cruelly ignored.”
“Bihar appears to have got a bonanza of announcements. It is natural since elections are due there later in the year. But why has the other pillar of the NDA, namely Andhra Pradesh, been so cruelly ignored?” he questioned.
Congress accuses BJP of amending Nuclear Damage Act to appease Trump
The Budget also unveiled an ambitious goal of developing at least 100 gigawatts (GW) of nuclear energy by 2047 under the “Nuclear Energy Mission for Vikasit Bharat.”
To achieve this, the government plans to amend key laws, including the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. Ramesh, however, accused the BJP of previously sabotaging the Nuclear Damage Act and now amending it to appease former U.S. President Donald Trump.
“The BJP led by Arun Jaitley successfully sabotaged the Civil Liability for Nuclear Damage Act, 2010, that international companies wanted when Dr. Manmohan Singh was PM. Now to appease Mr. Trump, the FM announces that the Act will be amended,” Ramesh alleged.
Finance Minister Nirmala Sitharaman, presenting her eighth consecutive Budget, emphasized the importance of nuclear energy for India’s energy transition and economic growth.
Census, National Population Register unlikely in 2025 as Budget allocation shrinks
New Delhi, 1 February: The decadal census is unlikely to be conducted in 2025, as indicated by the modest allocation of Rs 574.80 crore in the Union Budget presented on Saturday.
The Union Cabinet had initially approved the 2021 Census with a budget of Rs 8,754.23 crore and an additional Rs 3,941.35 crore for updating the National Population Register (NPR). The house listing phase and NPR update were scheduled between April and September 2020 but were postponed due to COVID-19. Since then, the census has remained on hold without a new timeline.
Finance Minister Nirmala Sitharaman’s Budget 2025-26 allocated Rs 574.80 crore for Census, Surveys, and Statistics under the Registrar General of India (RGI). This amount is significantly lower than the Rs 3,768 crore allocated in 2021-22, signaling further delays. The allocation was Rs 572 crore in 2024-25.
According to officials, the entire census and NPR exercise is likely to cost the government more than Rs 12,000 crore.
This exercise, whenever it happens, will be the first digital census giving the citizens an opportunity to self-enumerate.
Centre targets narrower fiscal deficit of 4.4% for FY 2025-26
Union Finance Minister Nirmala Sitharaman announced in her budget speech on Saturday that the Centre aims to reduce the fiscal deficit to 4.4% of the Gross Domestic Product (GDP) for the financial year 2025-26, a decrease from the revised fiscal deficit estimate of 4.8% for the current year.
To fund the reduced deficit, the government has increased gross market borrowings to Rs 14.82 trillion for 2025-26, compared to Rs 14.01 trillion in the ongoing fiscal year. This move, however, comes amid a reshuffle of personal income taxes, which is expected to result in a revenue loss of Rs 1 trillion, according to Reuters.
The net market borrowing for the year is expected to be Rs 11.54 trillion, slightly lower than the Rs 11.63 trillion projected for the current fiscal year. Despite this, the government is focused on reducing the fiscal deficit while maintaining its financial commitments.
Additionally, the government announced a long-term fiscal goal to shift to a debt-to-GDP ratio as the key benchmark starting from FY 2026-27. The target is to bring down the national debt to 50% of GDP by March 31, 2031, from its current level of 57.1%.
Sitharaman detailed the Budget Estimates for 2025-26, with total receipts (excluding borrowings) estimated at Rs 34.96 lakh crore and total expenditure projected at Rs 50.65 lakh crore. Net tax receipts for the year are expected to reach Rs 28.37 lakh crore.
The government’s fiscal strategy includes market borrowings and other financing sources, with gross market borrowings for 2025-26 pegged at Rs 14.82 lakh crore.
Modi hails budget
Meanwhile, Prime Minister Narendra Modi on Saturday hailed the Union Budget 2025 as a crucial milestone in India’s development journey, emphasising its focus on fulfilling the aspirations of 1.4 billion Indians.
“Today is an important milestone in India’s development journey. This is the budget of aspirations of 140 crore Indians. This is a budget that fulfils the dreams of every Indian. We have opened many sectors for the youth. The common citizen is going to drive the mission of Viksit Bharat,” he said. (With inputs from agencies)