New Delhi, Apr 1 – Senior Congress leader P. Chidambaram has sharply criticized Finance Minister Nirmala Sitharaman’s response to his query regarding capital expenditure (capex) for the fiscal year 2024-25. In a statement issued late Tuesday, Chidambaram claimed that Sitharaman provided a "tortuous" explanation and that the numbers clearly indicated a "cut" in capex for the year.
The former Finance Minister expressed his dissatisfaction with Sitharaman's explanation during a debate in the Rajya Sabha, where he had questioned the capital expenditure estimates for 2024-25. Chidambaram stated that the figures pointed to a reduction in the expenditure, despite the government's assertions to the contrary.
"There is a reduction (cut)," Chidambaram said, questioning the Finance Minister about the reasons for this reduction. He suggested that while the Finance Minister could have explained the reasoning behind the cut, it was the public who should ultimately decide whether these reasons were acceptable. Instead, he added, Sitharaman had questioned the comparison between BE and RE.
“I am astonished that the Hon'ble FM should say that comparison of BE and RE is 'flawed'. If BE and RE are not comparable, why list the two numbers side-by-side in the Budget documents?” Chidambaram asked in his statement.
He further questioned the practice of listing the Budget Estimate (BE) and the Revised Estimate (RE) of the fiscal deficit side by side, suggesting that it was meant to demonstrate improvements in government fiscal management. Chidambaram argued that this logic should apply to all estimates, including capital expenditure.
During the Question Hour in the Rajya Sabha, Sitharaman said, "The capital expenditure has not been reduced but has gone up to Rs 11.21 lakh crore for the 2025-26 fiscal. So, the claims of cuts are misleading and based on flawed comparisons."
Sitharaman also responded to Chidambaram’s social media posts, accusing him of presenting a "selective arithmetic" and making flawed comparisons between BE and RE figures. She suggested that such claims were more about political rhetoric than contributing to meaningful public discourse.
In her post on X (formerly Twitter), she further emphasized that "cutting down the capital expenditure is not the case with us."
The former Finance Minister expressed his dissatisfaction with Sitharaman's explanation during a debate in the Rajya Sabha, where he had questioned the capital expenditure estimates for 2024-25. Chidambaram stated that the figures pointed to a reduction in the expenditure, despite the government's assertions to the contrary.
Chidambaram’s Criticism
Chidambaram referred to Sitharaman's answer as "laboured and tortuous," criticizing her for not directly addressing his straightforward question. He had asked what the budget estimate (BE) for capital expenditure was in the 2024-25 budget and how it compared to the revised estimate (RE) at the end of the year."There is a reduction (cut)," Chidambaram said, questioning the Finance Minister about the reasons for this reduction. He suggested that while the Finance Minister could have explained the reasoning behind the cut, it was the public who should ultimately decide whether these reasons were acceptable. Instead, he added, Sitharaman had questioned the comparison between BE and RE.
“I am astonished that the Hon'ble FM should say that comparison of BE and RE is 'flawed'. If BE and RE are not comparable, why list the two numbers side-by-side in the Budget documents?” Chidambaram asked in his statement.
He further questioned the practice of listing the Budget Estimate (BE) and the Revised Estimate (RE) of the fiscal deficit side by side, suggesting that it was meant to demonstrate improvements in government fiscal management. Chidambaram argued that this logic should apply to all estimates, including capital expenditure.
Sitharaman’s Response
In a rebuttal, Finance Minister Nirmala Sitharaman denied any cuts in the capital expenditure for the year. She clarified that the capital expenditure for the fiscal year 2024-25 stood at Rs 11.11 lakh crore, and it was set to increase to Rs 11.21 lakh crore for the next fiscal year, 2025-26.During the Question Hour in the Rajya Sabha, Sitharaman said, "The capital expenditure has not been reduced but has gone up to Rs 11.21 lakh crore for the 2025-26 fiscal. So, the claims of cuts are misleading and based on flawed comparisons."
Sitharaman also responded to Chidambaram’s social media posts, accusing him of presenting a "selective arithmetic" and making flawed comparisons between BE and RE figures. She suggested that such claims were more about political rhetoric than contributing to meaningful public discourse.
In her post on X (formerly Twitter), she further emphasized that "cutting down the capital expenditure is not the case with us."
Conclusion
The exchange between Chidambaram and Sitharaman highlights the ongoing debate over the government's fiscal policy and capital expenditure in the upcoming fiscal year. While the Finance Minister insists that the capital expenditure is on an upward trajectory, the Congress leader maintains that the numbers indicate a reduction, leading to a sharp political disagreement on the issue.
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