Union Budget 2026: A Failed Test of Economic Strategy?
Former finance minister P Chidambaram sharply criticized the Union Budget 2026, presented by Finance Minister Nirmala Sitharaman on Sunday, 1 February 2026. Chidambaram alleged that the budget is a ‘failed test of economic strategy, economic statesmanship,’ and claimed that the government has discarded the Economic Survey 2025-26.
Key Highlights of the Union Budget 2026
The Union Budget 2026 has introduced several key measures, including an increase in Capex to ₹12.2 trillion in FY27, the development of rare earth corridors in Tamil Nadu, Kerala, Odisha, and Andhra Pradesh, and funding for MSMEs. The budget has also focused on promoting Ayurveda and other traditional industries.
Chidambaram’s Criticism
Addressing a press conference in New Delhi, Chidambaram claimed that he is not sure if the Finance Minister and the government read the Economic Survey 2025-26 and even if they have, they have decided to discard the challenges and fall back on ‘their favourite pastime of throwing words at the people.’ Chidambaram also stated that he can count at least 10 challenges identified by the Economic Survey 2025-26 and many knowledgeable experts.
What’s Cheaper and What’s Costlier?
The government has introduced measures in its budget proposals to lower prices for leather products, cancer medications, and seafood by extending policy support, enabling duty-free imports, and granting customs exemptions. At least 17 imported drugs for cancer patients, leather items, textile garments, seafood products, overseas tour packages, and other items might get cheaper, with reduced levies and customs duties on some items slashed.
Impact on the Indian Economy
The Union Budget 2026 is expected to have a significant impact on the Indian economy. The increase in Capex and funding for MSMEs is likely to boost economic growth, while the promotion of Ayurveda and other traditional industries is expected to create new job opportunities. However, the budget has also been criticized for not doing enough to address the challenges facing the Indian economy, including high inflation and unemployment.
Conclusion
In conclusion, the Union Budget 2026 has been a mixed bag, with some positive measures and some criticisms. While the budget has introduced several key measures to boost economic growth, it has also been criticized for not doing enough to address the challenges facing the Indian economy. As the Indian economy continues to evolve, it is essential to stay informed about the latest developments and trends. For more information on the Indian economy and the stock market, visit our website and read our articles on Indian stock market and Nifty today.
