Sitharaman Refutes Claims of Unfair State Budget Allocations for FY25

Finance Minister Nirmala Sitharaman addressed misleading claims by opposition leaders regarding budgetary allocations. She clarified that the absence of a state's name in the Budget speech does not mean it is denied funds. Responding to a Budget discussion in the Lok Sabha, she emphasised that no state is being deprived of financial resources.

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Sitharaman highlighted that previous Budgets under the UPA government also did not mention all states by name. She referenced Budgets from 2004-2005 onwards, noting that 17 states were not named in the 2004-2005 Budget. "Did money not go to those 17 states? Did they stop it?" she questioned, addressing UPA members.

Fiscal Deficit and Economic Growth

The Finance Minister assured compliance with the fiscal deficit trajectory, aiming to reduce it below 4.5% by 2025-26 from the current target of 4.9%. The deficit was 5.6% in 2023-24. "I am confident of achieving this goal of 4.9%," she stated.

Sitharaman also highlighted India's status as the fastest-growing economy globally, attributing this to substantial capital expenditure. She mentioned that India has overcome the pandemic's after-effects due to this financial push.

Opposition's Remarks and Government's Response

Responding to TMC leader Saugata Roy's remark about her lack of new ideas due to her JNU education, Sitharaman retorted by pointing out that West Bengal's Chief Minister and Finance Minister studied at the University of Calcutta. "Are they too bereft of ideas?" she asked, defending Indian universities' calibre.

Sitharaman criticised Roy's statement on inequality, calling it shameful to suggest it was less under British rule than now. She noted West Bengal's share of total industrial production dropped from 24% at Independence to 3.5% by 2021.

Budget Allocations and Social Sector Funding

The Finance Minister refuted allegations that the Budget has cut allocations for agriculture, health, education, and other social sectors. She asserted that funding for these areas has increased compared to the previous year.

Sitharaman stated that Budget 2024-25 balances social objectives with fiscal consolidation. She emphasised that fiscal prudence without compromising welfare schemes is a hallmark of the Modi Government.

Comparative Analysis and MSP Demand

Comparing inflation management during UPA and NDA regimes, Sitharaman said inflation was in double digits for 22 months under UPA. Domestic inflation was higher than the global average then, but NDA has reduced it to 5.1% over the last decade from 8.1% during UPA's rule.

On the demand for a legal guarantee on MSP, Sitharaman pointed out that UPA had rejected this idea, fearing market distortion. "Now, they are shedding crocodile tears," she remarked, criticising UPA's past actions regarding MSP and farm debt waiver irregularities highlighted by CAG.

Agriculture Funding and Farmer Support

Sitharaman mentioned that agriculture allocation increased from Rs 21,934 crore in 2013-14 to Rs 1.23 lakh crore in FY25. Over Rs 3.2 lakh crore has been disbursed to 11 crore farmers under the PM Kisan scheme.

She added that a committee has been formed to enhance the functioning of the Commission for Agricultural Costs and Prices (CACP) for farmers' benefit.

Prime Minister Narendra Modi praised Sitharaman's comprehensive presentation of this year's Budget on X (formerly Twitter). He noted her reiteration of the government's commitment to growth and reforms.