Former Finance Minister P. Chidambaram has criticized the preface of the latest Economic Survey, calling it a “powerful indictment” of the Modi government and its policies. He suggested that the CEA has, through a “backdoor” channel, instrumentalized the failings of the administration, especially the deficiencies on the part of the administration to instill confidence in companies and investors. Chidambaram further alleged that the government operates a system whereby such regulatory agencies have been “weaponised” against political and economic opponents.
In a crushing response, the BJP also retorted against Chidambaram’s statement saying, “That’s screeching hypocrisy and economic stupidity. The party recalled to Chidambaram his contribution toIndia’s economic recession during the UPA period, which brought India in the so called “Fragile Five” economies. The BJP asserted that Chidambaram had no right to question economic governance after the mismanagement witnessed under his leadership.
Debate Over Deregulation
There is one important area of disagreement in that the Economic Survey argues for less regulation. Chidambaram lauded the advice made by the CEA that the government ‘should leave it alone’, i.e., should lower the regulatory burdens to business. Nonetheless, the BJP replied that the Modi government has been guided by this principle since 2014 quoting seminal reforms like the Goods and Service Tax (GST) and the Insolvency and Bankruptcy Code.
The CEA had also suggested a regulatory thought revolution, proposing a change from “guilty until proven innocent” to “innocent until proven guilty”. He cautioned that the destructive lack of confidence in Government agencies was threatening economic growth. Chidambaram has been able to strike this remark pointing to its correspondence with the long-standing criticism against an overblown bureaucracy and the arbitrary practices followed by law enforcement agencies.
On the other hand, the BJP claimed Chidambaram’s assertions to be “crocodile tears” and contended that the Modi dispensation had achieved much in streamlining bureaucracies and removing unnecessary regulations. The party alleged to the Congress leader of misrepresenting facts to mislead the public and create an overblown narrative about a lack of confidence in the government.
Union Budget 2025-26 Approved
While the war of words went on, the Union Cabinet approved the Union Budget 2025-26 (Saturday) and cleared the way for its introduction to Parliament. Finance Minister Nirmala Sitharaman is to deliver the budget in a climate of concerns around sluggish economic expansion, which yesterday reached the four-year low of 6.4%.
The forthcoming budget will be Sitharaman’s 8th and the 2nd budget of the BJP-led NDA government in its 3rd consecutive tenure. Meanwhile, as growing demand for tax relief increases consumer spending and the issue of weak demand grabs the headlines, there is high expectation from the budget.
Under the present dispensation, the government is likely to announce new economic policy to reinvigorate growth and present a road-map for translating its ‘Viksit Bharat 2047’ vision—long-term goal to make India a ‘developed country’ within the next two decades—into reality.
Despite the confidence of the government in its policies,. opposition leaders like Chidambaram are resisting that policy framework. The fight over economic policy governance is sure to heat up as the budget session draws near in Parliament.
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