Chidambaram Slams Finance Minister Over Alleged Cut in Capital Expenditure

New Delhi, April 1, 2025 — Senior Congress leader P. Chidambaram has raised concerns over the capital expenditure estimates presented in the Union Budget for 2024-25, accusing Finance Minister Nirmala Sitharaman of providing a "tortuous" explanation in the Rajya Sabha.

Chidambaram Questions Government's Budget Estimates​

Chidambaram, in a statement issued late on Tuesday evening, responded to Sitharaman's remarks in the Rajya Sabha, where she defended the government's capital expenditure projections. He asserted that the numbers presented "conclusively" demonstrate a reduction in the capital expenditure for the fiscal year 2024-25.

The former finance minister questioned Sitharaman's response to a simple query regarding the capital expenditure budget estimate (BE) for 2024-25, and the revised estimate (RE) at the end of the year. Chidambaram claimed that there was a reduction in capital expenditure, and in response to his question, Sitharaman failed to provide a clear answer, instead, offering a "laboured and tortuous" explanation.

Sitharaman Defends Capital Expenditure Projections​

Sitharaman, in her reply during the Rajya Sabha's Question Hour, strongly refuted the accusations. She stated that the capital expenditure had not been reduced but had actually increased to Rs 11.21 lakh crore for the fiscal year 2025-26. She clarified that the capital expenditure for 2024-25 stood at Rs 11.11 lakh crore, and the increase to Rs 11.21 lakh crore for the following year further substantiated her claim that there had been no reduction in government spending on capital projects.

The Finance Minister expressed her disbelief at Chidambaram's assertions, emphasizing that the comparisons between the budget and revised estimates (BE and RE) were not "flawed" as claimed by the opposition leader. Sitharaman went on to state that claims of a cut in capital expenditure were misleading and based on "flawed comparisons."

Chidambaram's Continued Criticism​

Despite the Finance Minister's defense, Chidambaram remained adamant in his stance. He pointed out that the government’s practice of listing both the Budget Estimate (BE) and Revised Estimate (RE) for fiscal deficit and capital expenditure in the same documents is intended to demonstrate improvements. He questioned why the same logic could not be applied to capital expenditure estimates, where a reduction was clearly evident in 2024-25.

Chidambaram also responded to a social media post by Sitharaman, in which she accused him of using "selective arithmetic" and misleading comparisons. He suggested that while such political rhetoric might serve to further political agendas, it does little to further informed public discourse.

Conclusion​

The back-and-forth between Chidambaram and Sitharaman has brought into focus the ongoing debate over the government’s fiscal policies and the accuracy of the capital expenditure projections for the current fiscal year. While the opposition continues to question the government's budgetary allocations, the Finance Minister has repeatedly defended the administration's stance, insisting that there is no cut in capital expenditure for 2024-25.