Budget Debate Sparks Tax Policy Critiques and Deportation Concerns in Parliament

In a heated parliamentary debate, former Finance Minister P Chidambaram criticized the Union Budget for allegedly benefiting the wealthy under the guise of tax relief for the middle class. Chidambaram also raised issues regarding the deportation of Indian nationals from the U.S. and criticized cuts to the Ministry of External Affairs' budget.

In a heated parliamentary session on Monday, the Rajya Sabha engaged in a lively debate over the Union Budget 2024-25, with leading Congress figure and former Finance Minister P Chidambaram launching a fierce critique. Chidambaram accused the government of implementing tax proposals that disproportionately favor the affluent, although they are presented as middle-class relief measures. He highlighted that India's taxpayer base consists of around 3.2 crore citizens, many of whom file returns but pay no tax.

The veteran politician questioned why former Prime Minister Manmohan Singh had not been awarded the Bharat Ratna and demanded clarity from the government regarding the recent deportation of Indian nationals from the U.S. Concurrent budget discussions in the Lok Sabha saw opposition members denouncing the government's approach, while BJP supporters claimed the budget supports the vision of 'Viksit Bharat'.

Chidambaram critically noted the decision to raise the income tax exemption threshold, arguing it would exempt 80 to 85 lakh individuals, including ultra-high earners, from taxation. He doubted the finance minister's projection of continued robust tax revenue growth despite substantial tax reliefs. Moreover, Chidambaram contended that the government's claim that tax cuts would stimulate the economy was flawed, suggesting some tax savings may merely boost bank deposits rather than drive consumption.

The Congress leader challenged the singular focus on income tax relief, advocating for measures such as increased MGNREGA wages and reduced GST rates, which could have broader economic benefits. He labeled the budget as politically motivated with limited impact on less affluent populations, alleging that it reflects neither a coherent philosophy nor policy direction. Additionally, Chidambaram criticized the Ministry of External Affairs' handling of the recent deportation issue and condemned its budget cuts.

In the ongoing debate, Trinamool Congress representatives also criticized the government, accusing it of neglecting MGNREGA obligations, and asserting that West Bengal voters would respond in the upcoming assembly elections.

(With inputs from agencies.)