The Opposition on Thursday in the Rajya Sabha slammed the Union Budget 2019-20 as anti-poor and middle class with Congress leader and former Finance Minister P Chidambaram terming it as “insipid”, and lacking bold steps and structural reforms. The treasury benches, however, hailed the Budget and claimed it will propel economic growth and bring prosperity to all citizens.
The two sides also repeatedly mentioned about $5 triliion economy by 2025 with the ruling NDA saying it is a big achievement and the Opposition pooh-poohing it and asserting the lot of the common man will not improve.
In fact, Chidambaram, while participating in the debate on Budget brushed aside the ruling combine’s claim of five trillion dollar economy by 2025 saying it will happen with or without the Prime Minister or the Finance Minister. The former Finance Minister said the Indian economy doubles every six to seven years given the nominal growth of 11 to 12 per cent every year and there is nothing to take credit for.
“There is this goal of a five trillion dollar economy. Good, very good. I will give you better goals. In 1990-91 India’s economy was 320 billion dollars, it doubled to 618 billion dollars in 2003-04. Then UPA Government came and from 618 billion dollars, it doubled to 1.22 trillion dollars in four years. It doubled again to 2.48 trillion dollars in September 2017. It will double to five trillion dollars in the next five years. It does not require a Prime Minister or a Finance Minister. It will double. That is the magic of compounding,” he said, adding that any money lender or borrower knows this.
The size of the economy is currently estimated at $2.7 trillion and is growing at a nominal growth. He said if the nominal growth of economy is 12 per cent, it is double in 6 years and if it grows at 11 per cent, it will double in 7 years. “So please don’t put this pie in the sky before people of the country saying five trillion dollars is equal to Chandrayaan landing on the moon. Five trillion dollar is simple arithmetic. So don’t put this pie in the sky. Come down to reality.”
In his 30-odd-minute speech, Chidambaram said the Budget does not give a clear road map to take India on the path of high economic growth. Taking a dig at the Narendra Modi regime for hesitating to go for structural reforms, he wished his Government had the same kind of mandate now enjoyed by the BJP to go for reforms. He said 11 major structural reforms took place in the last 20 to 25 years and most of them were initiated by Manmohan Singh.
Claiming that the Budget presented by Finance Minister Nirmala Sitharaman did not have even a single structural reform, Chidambaram said the previous regimes of Manmohan Singh undertook major reforms like abolishing licensing and Foreign Exchange Regulation Act (FERA). He also said the Finance Minister should have mentioned figures in her speech as people deserve to know broad numbers as they do not go through annexures and other Budget documents.
Speaking on similar lines, Chidambaram’s party colleague Kapil Sibal said the Budget was bereft of thematic consistency and lacked vision. Taking a jibe at the Finance Minister, he said the Budget speech looked like a trailer but no film. Sibal also said the Budget did not talk about water crisis, ways to boost manufacturing and warned against going in for sovereign funds.
D Raja (CPI), Sukhendu Sekhar Ray (TMC), Vishambar Nishad (SP), Manoj Jha (RJD) and T Shiva (DMK)also criticised the budget as it did not talk about the welfare of farmers, SC, ST and women.
Backing Sitharaman’s budget, Prabhat Jha(BJP)sasid it is people-friendly and takes care of all citizens. He also listed out major achievements of the Modi Government in the last five years and said poor and middle class therefore voted his government again to power in the recently held general elections.
Naresh Gujral (SAD) said the budget maintained a balance between fiscal discipline and growth. He, however, urged the government to make India a manufacturing hub and take care of the farm sector.
Echoing somewhat similar sentiments, Ramchandra Prasad Singh (JD-U) said schemes like toilets for all households across the country was laudable and has changed the thinking of people. Similarly, electrification of villages also led to development, he said.