Chidambaram Slams Government on Inflation and Unemployment

Former finance minister P Chidambaram critiqued the government for downplaying inflation and unemployment in the Rajya Sabha. He questioned the RBI's stance on bank rates, challenged the efficacy of current economic policies, and emphasized the severe impact on average families. Other political leaders added their critiques of the Union Budget.

Former finance minister P Chidambaram on Tuesday criticized the government for underestimating the impact of inflation, emphasizing that every family is seriously affected by the rising prices. He questioned the RBI's reluctance to reduce bank rates over the past 13 months if inflation is indeed low, as claimed.

Opening the discussion on the Union Budget 2024-25 in the Rajya Sabha, Chidambaram also mocked the proposed employment-linked incentive (ELI) initiative, suggesting it was introduced because the existing production-linked incentive (PLI) schemes failed to generate employment. He accused Finance Minister Nirmala Sitharaman of borrowing ideas from the Congress manifesto for the new ELI scheme.

He argued that inflation is not a trivial subject and condemned the Chief Economic Advisor's report claiming India's inflation is stable and nearing the 4 percent target. Chidambaram also criticized the government's approach to economic growth, unemployment, and federalism, urging for immediate and fair relief for all states.

(With inputs from agencies.)