Union Budget 2025-26 is a disaster for common man and India, says Amit Mitra…….

Amit Mitra, former Finance Minister of West Bengal and a noted economist, has expressed strong criticism of the Union Budget 2025-26, outlining six key points that he believes render it detrimental to the common people and the nation. Mitra highlights that the budget fails to address the pressing issue of unemployment, with approximately 37 million individuals currently jobless in India. He points out that the term "unemployment" is conspicuously absent from the budget discourse.

The budget proposes a significant cut in funding for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), decreasing it from Rs.89,000 crore to Rs.60,000 crore. Mitra argues that this reduction undermines a critical safety net for the rural populace, especially when many, including those over 61 years old, rely on it for livelihood. Mitra contends that the budget disregards cooperative federalism by failing to transfer the promised resources to states. He notes that out of the allocated Rs.3.34 lakh crore, only Rs.1.41 lakh crore had been transferred to states by November, leaving a substantial gap.

The unorganized sector, which employs about 93% of India's workforce, receives no mention in the budget. Mitra emphasizes that this sector was severely impacted by demonetization and continues to face challenges, yet the budget offers no measures for its revival. While the budget proposes raising the income tax threshold, Mitra points out that it simultaneously removes various exemptions under sections 80C and 80D of the Income Tax Act. This move could negate the intended benefits for the middle class, making the tax relief appear superficial.

Mitra criticizes the budget's employment generation schemes as inadequate, likening them to the Agniveer program. He argues that expecting the top 500 companies to absorb 2 million interns annually is impractical and fails to provide a sustainable solution to the unemployment crisis. Amit Mitra asserts that the Union Budget 2025-26 is disconnected from the realities faced by common citizens and neglects critical economic challenges, thereby posing a threat to India's socio-economic fabric.