Chidambaram puzzled by FM not mentioning Defence; 'Budget a letdown like never before'

Slamming the Centre's Union Budget 2021, ex-Finance Minister P Chidambaram on Monday claimed that it was a let down like never before. Pointing out that the Defence sector did not find a mention in the Budget, he said it was unprecedented that Defence expenditure was increased only by Rs 4000 crores. Slamming the privatisation of public sector banks, he said that how would the Centre announce agriculture, education loans?

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Chidambaram: 'No mention of Defence'

"Defence expenditure increased only by Rs 4000 crores, but mentions reduction in pensions.  Defence expenditure and health care  expenditure the govt has failed the people," said Chidambaram at Congress press conference. Talking about push for FDI in insurance, he added,"It is good to see increase in FDI limit in insurance sector in 74% - which they had opposed when we wanted to allow 20% FDI."

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Rebutting Centre's claims of Healthcare budget increase, he said, " It is a trick. She added one time cost of vaccination. There is actually a reduction in the budget allocated for health, while very small expenditure is done on health." Commenting on agriculture, he said, "The farm sectors is also affected. The allocation to agriculture is reduced. The proportion of total expenditure is reduced. MSMEs were ignored. Nothing was mentioned about providing liberal no interest loans. If there are no public sector banks, how will announce RDIF funds, education loans, agriculture loans? By the time they finish their term, they may sell off all public sector banks."

Concluding that the Budget's failures, he said," The Budget was let down like never before.  Let the states know that not one rupee will be spent on the numerous schemes she announced for the poll-bound states by this year. No mention of reduction in petrol or diesel prices. Definitely invest in infrastructure, but give equal weightage to poor, working and middle-class."

Budget 2021's Top Highlights: Healthcare, Infra, Disinvestment, monetisation at forefront

Union Budget 2021

Kicking off the new decade with India's first paperless budget, Finance Minister Nirmala Sitharaman on Monday tabled the Union Budget in the Parliament. Presenting one of the shortest budget speech (1 hour 40 mins), Budget 2021 focussed mainly on Healthcare, National Monetization Pipeline, disinvestment, infrastructure, agriculture, fiscal deficit and direct taxes. In the first post-COVID budget, FM Sitharaman allocated 2.83 lakh crores in this year's Union Budget - a 137% in Health budget, announced a 'National Monetization Pipeline' which covered key state assets to be monetised. The Centre also allowed strategic disinvestment several PSUs and increased FDI limit from 49% to 74% and allow foreign ownership and control with safeguards. With the economy hit by COVID, Fiscal deficit of FY-2021-2022 was pegged at 6.8% of GDP while FY-2020-21's fiscal deficit was pegged at 9.5% GDP and kept the state's share of the Central taxes at 41%, while J&K and Ladakh will be funded by Centre.

Budget 2021: 137% hike in Health spending; PM Aatmanirbhar Swasth Bharat Yojana launched