Fiscal Debate: Sitharaman Refutes Chidambaram's Claims of CapEx Cuts

Finance Minister Nirmala Sitharaman refuted claims of reduced capital expenditure for 2025-26, arguing that it increased to Rs 11.21 lakh crore. In response to Congress leader P Chidambaram, she emphasized misleading comparisons and fiscal prudence. Various factors influence budget allocation such as general elections and unutilized state funds.

Finance Minister Nirmala Sitharaman has dismissed allegations by former finance minister P Chidambaram of a cut in the capital expenditure for the 2025-26 fiscal. She emphasized that the capital expenditure allocation has actually risen to Rs 11.21 lakh crore, countering purported misleading comparisons.

Sitharaman highlighted in the Rajya Sabha that claims of budget cuts are unfounded and driven by flawed data interpretation. She detailed various factors affecting budgetary decisions, including the Model Code of Conduct, adverse weather conditions, and low capital overspend by certain states and central agencies.

The minister's remarks came amid political discourse over fiscal management, explaining the continued financial assistance to states under long-term capital expenditure schemes and the precise oversight mechanisms to ensure proper fund utilization.

(With inputs from agencies.)