Budget 2026 rebranded as ‘cut welfare’ by Congress as it flags deep spending slash

The Congress on Sunday called Budget 2026-27 a hollow exercise built on spending cuts and headline management, while accusing the Centre government of offering neither a policy roadmap nor political clarity at a time of deep economic stress and rising inequality.

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Congress president Mallikarjun Kharge said the Modi-led centre had “run out of ideas”, adding that Budget 2026 failed to address inequality, unemployment or the stress faced by farmers. He said inequality had surpassed levels seen during the British Raj, and yet the Budget did not even acknowledge the issue or provide support to SC, ST, OBC, EWS and minority communities.

Kharge also raised concerns over federalism, saying the Finance Commission’s recommendations did not appear to offer any meaningful relief to state governments struggling with severe financial stresses.

Senior Congress leader Randeep Surjewala said the Budget should be renamed as a “Cut Welfare by Cutting Expenditure” exercise, arguing that it had no reform agenda and no concern for farmers, workers, youth or vulnerable communities. “The motto seems to be: sab kuch kaat daalenge,” he said.

Surjewala pointed out that total expenditure in the current financial year had been cut by Rs 1,00,503 crore, while capital expenditure was slashed by Rs 1,44,376 crore. He said these reductions exposed the hollowness of the government’s claims on growth and infrastructure push.

He said the axe had fallen hardest on sectors that directly affect livelihoods and social security. “Rural development saw a cut of Rs 53,067 crore, urban development Rs 39,573 crore, social welfare Rs 9,999 crore, agriculture Rs 6,985 crore, education Rs 6,701 crore and health Rs 3,686 crore. Funds for the North East were reduced by Rs 1,436 crore,” he said.

“This is not the ‘Reform Express’ that the Prime Minister and Finance Minister keep talking about. This is a derailed train full of noise, confusion and hollow drum beating,” Surjewala said.

The Congress also flagged a sharp deterioration in government finances during 2025-26, saying revised revenue receipts were lower than budget estimates by Rs 78,086 crore, while revised net tax receipts had fallen by Rs 1,62,748 crore. Total spending cuts, the party said, were being used to artificially project fiscal discipline.

Surjewala said allocations for SC, ST and OBC communities had been severely reduced, including cuts to scholarships and development programmes. He also highlighted a Rs 50,000 crore cut in the Jal Jeevan Mission, warning that people were continuing to suffer due to contaminated drinking water while essential funding was being withdrawn.

Looking ahead to 2026-27, the Congress said several key schemes would receive less money than the current year’s revised estimates, including crop insurance, urea subsidy, PM Garib Kalyan Anna Yojana and LPG connections for poor households. It also flagged reduced allocations for defence aviation, naval dockyards, Air Force projects and technology linked to national security.

The party said the projected nominal GDP growth of 10 per cent for FY27 was lower than the current fiscal year and reflected weak economic momentum. It added that the headline capital expenditure figure of over Rs 17 lakh crore inspired little confidence, given repeated cuts to capex in previous budgets, including a sharp reduction in the current year.

Congress general secretary Jairam Ramesh said that while detailed scrutiny was needed, it was evident within 90 minutes of the speech that Budget 2026-27 was “totally lacklustre” and far below expectations. He said the speech was non-transparent and failed to clearly spell out allocations for key programmes and schemes.

Ramesh said the Budget offered no revival strategy for manufacturing, no credible plan for job creation or women’s participation in the workforce, no response to the export slowdown or the weakening rupee, and no relief for inflation-hit poor and middle-class households.

He said that promises on infrastructure had been repeated without delivery, cities remained unliveable, and there was not a single substantial announcement on social security or welfare, including clarity on funding for the law that replaced MGNREGA.

“This Budget offers no solutions. Not even slogans can hide the absence of policy,” said Ramesh.

Leader of opposition in the Lok Sabha Rahul Gandhi said, “Youth without jobs. Falling manufacturing. Investors pulling out capital. Household savings plummeting. Farmers in distress. Looming global shocks - all ignored. A Budget that refuses course correction, blind to India’s real crises.”