Former Finance Minister P. Chidambaram unleashed a fierce critique of the 2026-27 Union Budget in Rajya Sabha on Monday, labeling it a non-event that people will quickly forget. At the heart of his assault was the youth unemployment crisis, now at a staggering 15%, coupled with regular jobs available to fewer than 25% of the total workforce.
Does the government scan the voluminous Economic Survey, or does it turn a blind eye to its uncomfortable truths? Chidambaram posed this during the debate, referencing the document’s warnings on capital investment woes, job scarcity, and economic slowdown. The ruling dispensation has floundered on all fronts, he charged.
Private investment lingers at 22% despite corporate cash hoards. GFCF is mired at 30% of GDP, and net FDI nosedived to under 0.09% last year. A mysterious Rs 44,000 crore cut in capex for the coming year lacks justification, with no momentum from any investment quarter—public, private, or overseas.
India’s employment landscape is shifting distressingly towards self-employment and farming. Factories employ a mere 19.5 million in a 1.44 billion population, manufacturing fixed at 16% GDP share. Youth unemployment stands at 15%, regular jobs scarce.
The PM Internship portal is a disaster: 1.65 lakh applications yielded 33,000 approvals and just 6,000 retainees. Chidambaram urged the Finance Minister to explain this debacle. He derided the Budget as forgettable, with stingy funding for promised initiatives and slashes in critical areas like defense and social welfare.
The much-touted reforms are stuck in neutral, not off-track. Nominal GDP growth has slid to 8% projections. Real growth metrics raise doubts with tame inflation and deflationary pressures. Fiscal slippage is minimal, propped up by expenditure curbs and RBI windfalls, not genuine revenue surge.
This Budget offers no roadmap for India’s pressing issues. It will evaporate from headlines soon, predicted the veteran leader.