New Delhi, February 9, 2026 – Senior Congress leader and former Finance Minister P. Chidambaram sparked a heated debate in the Rajya Sabha today, raising serious questions over the declining growth rate of the Indian economy during the discussion on the Union Budget 2026-27.
Initiating the debate, Chidambaram highlighted a sharp drop in the nominal growth rate: from 12% in 2023-24 to 9.8% in 2024-25, and further to just 8% in 2025-26. He also pointed to persistent fiscal challenges, noting the fiscal deficit at 4.4% for 2025-26 (projected to dip to 4.3% next year) and a revenue deficit stuck at 1.5%. “The revenue deficit must be eliminated,” he stressed, arguing it should ideally be at 1%.
The Congress MP further criticized stagnant manufacturing employment—only 195 lakh jobs in factories for a population of 144 crore—and the sector’s share remaining frozen at 16% for years. He accused the budget of slashing allocations in critical areas like science, social welfare, and urban development, while several announced schemes lacked clear or adequate funding.
Defending the government, BJP MP Arun Singh countered that the budget size has tripled to ₹53 lakh crore from over ₹16 lakh crore during the UPA era. He emphasized massive support for the poor through housing schemes, direct farmer transfers exceeding ₹4 lakh crore, boosted grain and horticulture production, and a 22% hike in rural development allocations over last year’s MNREGA outlay.
Other opposition voices echoed concerns: TMC’s Sushmita Dev alleged data loopholes on growth and poverty; DMK’s P Wilson claimed neglect of farmers and workers amid rising national debt; and CPI(M)’s A A Rahim cited a 6.85% unemployment rate from CMIE data. AAP’s Raghav Chadha urged regulating cryptocurrencies, while regional parties like BJD and AIADMK highlighted state-specific disappointments and positives.
Nominated member Sudha Murty praised the budget’s stability and leadership-driven progress, and JD(U)’s Sanjay Kumar Jha lauded its focus on long-term fiscal discipline.
The inconclusive discussion was adjourned after Special Mentions, underscoring deepening political divides over India’s economic trajectory amid global uncertainties. As the Budget Session continues, these exchanges signal intense scrutiny ahead for the government’s growth narrative.
