Chidambaram says 11 pc tax growth unlikely with tax cuts as RS takes up budget discussion, seeks Bharat Ratna for Manmohan Singh

New Delhi [India], February 10 (ANI): Rajya Sabha on Monday took up discussion on the Union Budget with senior Congress leader and former Finance Minister P Chidambaram slamming Union Budget 2024-25 saying that tax proposals not only benefit the middle class but also the rich and richest.
Chidambaram pointed out that the number of income tax payers in India stands at 3.2 crore, with many filing returns but paying nil tax.
He asked why the government had not yet conferred the Bharat Ratna on former Prime Minister Manmohan Singh and also sought questions from the government over recent deportation of Indian nationals from the United States.
The discussion on Union Budget also continued in Lok Sabha with opposition members slamming the government and BJP members stating that it will contribute to fulfilling the goal of 'Viksit Bharat'
Chidambaram noted that the government's decision to increase the income tax exemption threshold from Rs 7 lakh to Rs 12 lakh would remove 80 to 85 lakh taxpayers from the tax net.
"It includes 2,27,315 individuals earning over Rs 1 crore, 262 individuals earning over Rs 100 crore, and 23 individuals earning more than Rs 500 crore. This is not just a middle-class relief but a boon for the richest in the country," Chidambaram remarked.
He also questioned the finance minister's claim of forgoing Rs 1 lakh crore in tax revenue while simultaneously projecting an 11.1 per cent growth in net tax revenues in FY 2025-26, similar to the 11 per cent growth recorded in the previous fiscal.
"After foregoing Rs one lakh crore, how does she still project the same revenue growth? This is pure magic, not mathematics. I will wait to see how this magic unfolds," he stated.
The Congress leader further challenged the government's assertion that the Rs one lakh crore tax relief would spur consumption and boost the economy.
He argued that a portion of this money would likely go into savings, debt repayment, foreign travel, and imported goods, rather than fuelling domestic consumption.
"Even the finance minister's cheerleaders are now sceptical about this claim," he said, citing concerns raised by SBI Chairman that some of the tax savings may flow into bank deposits rather than direct spending.
Chidambaram criticized the government for focusing only on income tax relief while neglecting broader economic measures that could have helped a larger section of society.
He suggested that instead of solely cutting income tax, the government could have increased MGNREGA daily wages, benefiting rural workers, raised statutory minimum wages under the Minimum Wages Act, reduced GST rates, which impact both the rich and the poor and lowered taxes on petrol and diesel, easing inflationary pressure.
"Everybody pays GST, the richest and the poorest. Everybody directly or indirectly uses petrol and diesel. She did nothing on these fronts but focused only on income tax, possibly with an eye on the Delhi elections," Chidambaram said.
Terming it "politically driven budget", he said the budget does little for the bottom half of the population.
He described the cut in income tax as Sitharaman's "trump card, no pun intended".
He said while he is happy speaking for the bottom half of the population, members of treasury benches should also do so.
The Congress leader alleged that the budget lacked "both philosophy and policy" and said the government had not heeded the advice of Chief Economic Advisor to deregulate and for the government to "get out of the way".
The Congress leader alleged that Ministry of External Affairs (MEA) "crumbled badly" in handling the deportation of Indian nationals from the United States.
He said that the government had information about the planned deportation of Indian nationals and asked if External Affairs Minister S Jaishankar had raised the issue of sending Indians, identified as illegal immigrants by the US, under SoPs when he met US Secretary of State Marco Rubio.
He said the government was aware of the number of Indians to be deported under SoP, with handcuffs and legs tied with ropes.
He asked if the government had offered to send its own plane to bring back Indians and if the government will send planes to bring back 483 more Indians identified as illegal immigrants by the US.
He also said that the outlay for MEA had been cut in the union budget.
Participating in the discussion, Trinamool Congress members accused the government of not paying MGNREGA dues and said the people of West Bengal will give an answer to the BJP in next year's assembly polls. (ANI)