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NEW DELHI: In a recent Rajya Sabha debate on the Union Budget 2024-25, former finance minister and Congress leader P. Chidambaram highlighted four pressing challenges currently confronting the Indian economy.
Chidambaram voiced apprehensions regarding the unemployment rate, citing figures from the Centre for Monitoring Indian Economy (CMIE) that reported a 9.2% rate in June 2024. He questioned the efficacy of the Production Linked Incentives (PLI) scheme in generating employment and urged the finance minister to provide clarity on the actual job creation numbers under the scheme. The Congress leader also expressed skepticism about the newly introduced Employment Linked Incentives (ELI) scheme, remarking, "While it is a promising concept, doubts linger over its ability to successfully accommodate 290 lakh beneficiaries as outlined."
He further scrutinized the Reserve Bank of India's assertion of creating over 4.67 crore jobs in FY24, pointing to the overwhelming number of applicants for limited police positions in Uttar Pradesh as indicative of a deeper employment crisis.
Inflation emerged as another critical concern raised by Chidambaram, who criticized the finance minister for addressing the issue with just ten words in her budget speech. "The finance minister summarily addressed inflation in her speech with precisely 10 words. Is inflation such a trivial matter that it can be dismissed so casually in just 10 words?" he questioned.
Chidambaram also drew attention to the issue of low wages, highlighting that 65% of the 7.4 crore taxpayers in 2022-23 had no tax liability. He criticized the relief measures aimed at individuals transitioning to the new tax regime, arguing that the government's focus on a mere 2-3 crore individuals overlooked the broader population of 142 crore Indians.