Srinagar, Feb 01: The Communist Party of India (Marxist) on Saturday strongly condemned the Union Budget 2025-26, calling it a “cruel betrayal” of the Indian people.
In a scathing attack, the CPI(M) accused the Modi government of prioritising the interests of the wealthy while neglecting the economic distress faced by the majority of the population.
The party in a statement issued here alleged that the budget fails to address the core issue of declining purchasing power among the masses due to unemployment and stagnant wages. Instead, it claimed, the government is offering tax cuts to high-income groups while slashing expenditures. “This approach would only worsen economic inequality and further marginalize vulnerable sections of society,” it said.
Citing budget figures, the party said that total government expenditure as a percentage of GDP is set to decline from 14.6% in 2024-25 to 14.2% in 2025-26. It accused the government of under-spending, saying that actual expenditure in the previous fiscal year fell short by approximately Rs 1 lakh crore compared to budget estimates. Similarly, transfers to states were reportedly reduced by Rs 1.12 lakh crore, undermining federalism and state autonomy, it added.
The CPI(M) further slammed the government’s focus on privatisation, particularly the decision to allow 100% FDI in the insurance sector and privatise the power sector. It accused the Modi government of facilitating wealth accumulation for the rich by promoting private investment at the cost of public welfare.
The party also raised concerns over cuts in key welfare sectors. “Capital expenditure was reportedly reduced by Rs 93,000 crore, while allocations for food subsidies, education, rural development, and social welfare remained stagnant when adjusted for inflation. The government’s failure to increase allocations in real terms amounts to a deliberate neglect of public welfare,” it said.
The CPI(M) condemned the stagnant Rs 86,000 crore allocation for MGNREGA despite growing demand for rural employment. It criticised the lack of commitment to Minimum Support Prices (MSP) for farmers, calling it an affront to agrarian workers facing economic distress.
The party accused the government of failing marginalised communities, citing cuts in allocations for Scheduled Castes (Rs 27,000 crore), Scheduled Tribes (Rs 17,000 crore) and the Northeast (Rs 13,000 crore). There are reductions in child welfare and gender budget allocations, it added.
Rejecting claims of middle-class relief, the party said the tax exemption increase to Rs 12 lakh primarily benefits the wealthy, while the government refused to impose higher taxes on top earners.
The CPI(M) called for nationwide protests against what it termed an “anti-people” budget.
