Nirmala Sitharaman Rebuts Opposition’s Budget Allegations in Lok Sabha

Finance Minister Nirmala Sitharaman strongly countered opposition claims of bias in the Union Budget while addressing the Lok Sabha. She dismissed allegations of financial discrimination against opposition-ruled states and accused West Bengal’s ruling Trinamool Congress (TMC) of mismanaging central schemes.

"This is Not an Anti-Bengal Budget, TMC is Anti-Trinamool"

Responding to claims that the budget was unfair to West Bengal, Sitharaman clarified that the Centre was not withholding funds but exposing corruption within TMC.

• TMC misused central schemes like PM Awas Yojana, MGNREGA, Mid-Day Meal, and Ayushman Bharat.
• West Bengal’s manufacturing sector has sharply declined—its share in India’s total manufacturing fell from 24% in 1947 to just 3.5% today.
• Per capita income in Bengal has dropped below the national average, pointing to economic stagnation.
• 25 lakh fake job cards were created under MGNREGA, leading to massive fund misappropriation.
• The state government refused to implement Ayushman Bharat, depriving millions of healthcare benefits.

Punjab, Kerala, Karnataka, and Himachal Received Significant Allocations

Sitharaman dismissed accusations of budgetary bias, highlighting major allocations to various states:

• Punjab received over ₹20,000 crore for three major road projects.
• Kerala, Karnataka, Jharkhand, and Himachal Pradesh were given substantial funds for infrastructure and disaster relief.
• Himachal Pradesh received financial aid in the July 2024 budget to address flood damages.

She stressed that opposition claims about reduced social sector spending were misleading.

States Failed to Utilize Allocated Funds

Sitharaman criticized several states for not utilizing funds provided under key welfare schemes:

She pointed out that despite receiving budgetary allocations, some state governments failed to effectively implement these welfare programs.

Why is the Rupee Depreciating? Sitharaman's Explanation

On concerns regarding rupee depreciation, Sitharaman clarified that the decline is not due to India’s economy weakening, but due to the strengthening of the US dollar.

• The rupee has not fallen significantly compared to other global currencies.
• Between October 2024 and January 2025, the currencies of South Korea, Malaysia, Indonesia, Japan, and European nations depreciated by 5-8% against the US dollar.
• Citing former RBI Governor Raghuram Rajan, she reiterated: “The rupee is not falling, the dollar is getting stronger.”
• Factors such as the Dollar Index and crude oil prices are driving the dollar's appreciation.

Government’s Steps to Control Inflation

Sitharaman reassured that the government is actively controlling inflation through policy measures:

• Increased agricultural production: The budget has allocated funds to boost the production of pulses, vegetables, and fruits.
• Subsidized essential food items: The government is selling rice, pulses, onions, and flour at lower prices to curb inflation.
• Retail inflation rate is expected to remain stable at 4.2% in FY 2025-26, as per RBI projections.

Unemployment is Declining, Says Finance Minister

Addressing concerns over joblessness, Sitharaman provided statistics indicating a decline in unemployment and rising workforce participation:

• Unemployment rate:
  • 2017-18: 6%
  • 2023-24: 3.2% (significant reduction)
• Labour participation rate:
  • 2017-18: 49.8%
  • 2023-24: 60% (more people joining the workforce)

These figures suggest that economic activity and job creation are improving, contrary to opposition claims.

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