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Shashi Tharoor, a prominent Congress MP, has voiced strong criticism of India's Union Budget 2025, labeling it as 'underwhelming' and suggesting it primarily caters to the electorate in Delhi and Bihar. His assessment highlights a significant disparity in the budget's impact, benefiting primarily those in the fixed middle class within these two states. This targeted approach, Tharoor argues, overlooks the pressing concerns of the broader Indian population, particularly the unemployed and those struggling with the rising cost of living.
A key feature of the budget was the substantial income tax cuts announced by Finance Minister Nirmala Sitharaman. These cuts aim to stimulate consumption by effectively exempting individuals earning up to Rs 12 lakhs annually from income tax. While Sitharaman presented this as a boon for the middle class, empowering them with increased disposable income, Tharoor expresses skepticism regarding the practical implications. He points to the government's track record, suggesting a potential disconnect between announcements and actual implementation. His concerns extend to the fine print within the upcoming Income Tax bill, which could significantly alter the intended distribution of tax benefits.
Tharoor emphasizes the government's relative strength in making announcements compared to its actual delivery. He cautions against premature celebration, highlighting the need to scrutinize the details of the proposed tax bill before fully assessing its impact. The impending legislation is intended to replace the outdated Income Tax Act of 1961, promising simplification and reduced litigation. However, Tharoor's apprehension reflects a broader distrust of the government's ability to effectively translate its ambitious plans into tangible results. The potential for 'fine print' to significantly alter the benefits undermines the perceived generosity of the tax relief.
Beyond the immediate tax implications, Tharoor's critique delves into the broader economic realities faced by the Indian middle class. He argues that even with the tax cuts, the real income of many salaried individuals is declining due to persistent inflation. This inflationary pressure, he suggests, largely overshadows any benefits derived from nominal income increases. The absence of robust measures to combat inflation is a key area of concern, indicating a failure to address the underlying economic challenges facing a significant portion of the population. The budget's silence on the critical issue of inflation further reinforces Tharoor's assertion of its overall inadequacy.
The lack of attention to job creation is another central point of Tharoor's criticism. He questions the budget's ability to meaningfully address unemployment, a persistent issue affecting a large segment of the young, educated population. The absence of concrete strategies or investments aimed at stimulating job growth underscores the budget's limitations, suggesting an inadequate response to a fundamental economic challenge. This oversight, Tharoor believes, significantly diminishes the budget's overall effectiveness, particularly given the scale of unemployment in India.
Furthermore, Tharoor highlights the disparity in the budget's allocation, particularly in relation to Kerala. He alleges that the state, recently affected by devastating landslides, has received minimal support from the central government. This lack of assistance, contrasted with the substantial provisions for Bihar, reinforces Tharoor's perception of the budget as politically motivated rather than driven by genuine national interest. The contrast between the treatment of Kerala and Bihar, both states with political significance, fuels accusations of favoritism and neglect, undermining the budget's claim of equitable distribution of resources.
The budget's inclusion of seven significant announcements targeting development in Bihar, a state crucial for the ruling NDA coalition, further exacerbates concerns about political favoritism. These announcements, ranging from the creation of a Makhan Board to infrastructural improvements, have sparked criticism from the opposition, who see them as a 'bonanza' for Bihar at the expense of other states. This perception of biased resource allocation strengthens the argument that the budget prioritizes political expediency over broader national interests. This selective allocation highlights the political dimensions of the budget, weakening its credibility as a truly equitable plan for national development.
The lack of a comprehensive strategy for job creation and the persistent inflation undermine the effectiveness of the tax relief measures, according to Tharoor. He underscores the urgency of addressing these fundamental economic challenges, arguing that superficial measures alone cannot effectively alleviate the plight of the unemployed or the broader middle class struggling with rising prices. The failure to address these core issues, he maintains, renders the budget's stated goals of consumption boost and economic growth largely unachievable. The focus on short-term political gains at the expense of long-term economic stability represents a critical flaw in the budget’s design.
Finally, Tharoor expresses concerns about the potential impact of US President Donald Trump's tariff threats on India's exports, which are already struggling. The potential imposition of tariffs, particularly given the current economic challenges, could exacerbate the country's financial difficulties, compounding the negative consequences of a budget criticized for its inadequacy. This external threat underscores the vulnerability of the Indian economy, highlighting the need for a more robust and comprehensive budget that addresses both domestic and international challenges. In conclusion, Tharoor paints a pessimistic picture, emphasizing the lack of holistic solutions and the questionable efficacy of the budget's approach.
The overall assessment of the 2025 Union Budget by Shashi Tharoor reveals a deeply critical perspective, focusing on the inadequacies in addressing unemployment, inflation, and regional disparities. His analysis suggests that the budget, while offering some tax relief, ultimately fails to provide meaningful support for a significant portion of the Indian population. The perception of political bias and short-sighted economic strategies further weakens the budget's legitimacy and casts doubt on its potential to achieve its stated goals.
Source: "Yes, You've Got Some Tax Relief, But...": Shashi Tharoor On Budget