Senior Congress leader and former Union Finance Minister P. Chidambaram, along with former Rajya Sabha MP MV Rajeev Gowda, launched a scathing attack on the BJP-led government ahead of the Union Budget 2025-26, accusing it of failing to address critical economic challenges, including rising inequality, stagnant growth, and the suppression of key economic data.

At a press conference on Thursday, Chidambaram unveiled the Congress party’s report, titled “The Real State of the Economy 2025,” which highlights the government’s alleged mismanagement of the economy. The report claims that crucial data on health, education, and employment have been suppressed or delayed, distorting policy-making and hindering accountability.

Key Allegations by the Congress:

1. Rising Inequality: Chidambaram accused the government of ignoring the growing gap between the rich and the poor, stating, “The benefits of growth are not reaching the common man.”
2. Decline in Social Spending: The report pointed out a significant decline in government spending on health, education, and rural development since 2017-18, impacting welfare schemes and public services.
3. Job-Loss Growth: MV Rajeev Gowda highlighted that India’s economic growth is not creating enough jobs, warning of a “middle-income trap” where the country could become “stagnant, underproductive, and uncompetitive globally.”
4. Manufacturing Stagnation: The ‘Make in India’ initiative has failed to meet its targets, with manufacturing’s share in GDP remaining stagnant at 15.8%, far below the 25% target set for 2022.
5. Emigration of Wealth: Gowda revealed that 21,300 high-net-worth individuals left India between 2022 and 2025, depriving the country of critical investments.
6. Welfare Cuts: Schemes like MGNREGA have faced budget cuts, with funds being used to clear previous years’ dues rather than addressing current distress.

GDP Comparison:
Chidambaram compared India’s economic performance to that of the US and China, noting that despite a higher growth rate, India added only 256billiontoitsGDPlastyear,whiletheUSadded256billiontoitsGDPlastyear,whiletheUSadded787 billion and China added $895 billion.

Skepticism Over Budget 2025:
Chidambaram expressed skepticism about the upcoming Union Budget, referring to it as “Modi 2.1” rather than “Modi 3.0,” suggesting that it would likely follow the same policies as previous budgets. “Unless the government acknowledges the realities of the economy and adjusts its monetary and fiscal policies, it will continue on the same path,” he said.

Call for Policy Shift:
The Congress leaders stressed the need for a significant shift in policy direction, urging the government to prioritize job creation, boost manufacturing, and increase spending on social welfare programs. “The government must stop suppressing data and start addressing the real issues facing the economy,” Chidambaram added.

Government’s Response:
The BJP has yet to respond to the Congress’s allegations. However, with the Union Budget set to be presented on February 3, all eyes are on Finance Minister Nirmala Sitharaman to address these concerns and outline a roadmap for inclusive growth.

As the political debate intensifies, the Congress’s critique has sparked widespread discussions on social media, with hashtags like #RealStateOfEconomy and #Budget2025 trending. The opposition’s sharp criticism and data-driven arguments have put the government on the defensive, setting the stage for a heated Budget Session.