Amit Mitra, the Bengal chief minister’s special advisor on finance, called the Narendra Modi government’s Budget 2025-26 a disaster for the common people.

Mitra, former finance minister of Bengal, provided a detailed breakdown of the Budget presented by Union finance minister Nirmala Sitharaman on Saturday morning.

Here’s what he said:

‘Cuts in schemes’

“What has the Budget done for the common people,” he asked, answering himself:

“It has cut everything. Social services cut by 16 per cent. Housing cut by 4.38 per cent. Welfare of SC and ST cut by over 3 per cent. Social services and welfare cut by over 5 per cent. Even the food subsidy has been cut by 1 per cent.”

‘Nothing for anyone’

“There is nothing for the youth, women and farmers,” Mitra said. “Youth unemployment is 46 per cent, out of which 30 per cent are educated youths who are at least graduates.

“Unemployment in October and December according to the CMIE was as much as 37 million people…

“The Budget has nothing for the common people, nothing for the youth, only unemployment.

“Nothing of significance for the women; only words. Nothing for the farmers, excepting some homilies.”

‘Growth without vibrant manufacturing?:

“The Economic Survey has directly said the growth rate has been cut,” Mitra pointed out. “Manufacturing is only 15 per cent of the GDP and the promise was to take it to 25 per cent. What is there in the Budget to take manufacturing to the target?

“If the manufacturing sector remains at 15 per cent, how will you get higher growth? Naturally, growth is stumbling and [even the government is] conservative in its expectations.”

‘FDI in insurance sector: A conspiracy?’

Mitra pointed out that 100 per cent foreign direct investment has been allowed in insurance.

That, he said, “means a challenge to all the public sector enterprises like LIC and a host of other insurance companies including Indian private sector companies. They [foreign companies] will come with 100 per cent equity.

“When our state [Bengal] asked for GST to be reduced in insurance including life insurance from 18 per cent to zero because it is only punishing people who are taking insurance, the central government did not allow it. It postponed it.

“That leads me to a question: is there some kind of a conspiratorial process here? That foreign direct investors come in, 100 per cent equity [is allowed] but the GST remains at 18 per cent for the common people.

“Who benefits from this? Is there a connection between someone in this government and an international lobby? We need to think about that.”

‘End result of tax cuts is zero’

“What has the Budget done for the common people,” Mitra asked.

“It has consistently cut. [Income] tax, from seven lakh threshold, has been raised to Rs 12 lakh. So those with an income of Rs 12 lakh will not pay taxes. But remember, inflation is raging.

“[There is] nothing in the Budget to control inflation. So when you gain that little bit, only eight crore people pay [income] taxes. Even if some proportion of that section gains a little bit it, will be eaten up automatically by inflation. That means your real gain is zero. This is the kind of very clear trick the Budget plays.”

‘India’s debt to grow’

Mitra asked: “I want to know from the Budget, what it has done for inflation. To keep the fiscal deficit at 4.4 per cent, the central government is again going to borrow almost Rs 15 lakh crore. So, debt of the country will keep growing.”