[Marxistindia] A Thoroughly Anti People, Anti Federal Budget

[news from the cpi(m)]

February 01, 2026

 

Press Statement

 

The Polit Bureau of the Communist Party of India (Marxist) has issued the
following statement:

 

A Thoroughly Anti People, Anti Federal Budget

 

The ninth Union Budget presented by the Finance Minister in Parliament today
was a stark testimony to the uncritical commitment of the Modi Government to
promoting the narrow interests of a few big business houses and the rich and
the wealthy, at the cost of the working people and socially opressed
sections of society, as well as larger national economic interests. The
'fiscal discipline' that Nirmala Sitharaman claimed as a credit for the
Government has always been another way of describing tax concessions to the
corporate sector and the rich, while squeezing expenditures necessary for
improving the conditions of the working people. This has expressed itself in
the current year and the budget for next year by a massive contraction

in revenues and slashing of expenditure.

 

In 2025-26, the year that is now ending, tax revenue realizations have
fallen far short of even the modest estimates made in last year's budget -
even though part of the shortfall in income taxes and in GST revenues were
quietly compensated by growth in excise duties which fall mainly on oil. The
FM took no note of this crisis in revenues, and what they reflect about the
underlying economy, and omitted to even mention the revenue implications of
the tax proposals she announced. Their reality, however, is obvious from the
fact that the anticipated revenues for 2026-27 are almost the same as in the
Budget estimates for 2025-26 - which in effect means a sharp decline in the
proportion of national income received as revenue.

 

Meeting the objective of reducing the fiscal deficit in such circumstances,
in 2025-26 and 2026-27, has to obviously rely on cutting expenditures - and
a naked assault on peasants and workers  is the way in which this is being
achieved. Compared to the Budget Estimates of 2025-26, expenditures have
been drastically reduced under several Central and Centrally Sponsored
Schemes - like Rasthriya Krishi Vikas Yojana, PM POSHAN, PM-SHRI, PM-JAY,
PM-MSY, PMAY (Rural and Urban), Crop Insurance Scheme, etc. Allocations for
welfare of Scheduled Castes, Scheduled, Tribes, and North Eastern Areas have
also experienced cuts. Also there has been a slashing of expenditures for
Agriculture and Allied Activities, Rural Development, Education, Health and
Social Welfare. The Gender Budget has been slashed by Rs. 51,144 crores. In
the coming year, 2026-27, further cuts are proposed in fertilizer, food and
petroleum subsidies. This represents specially an attack on agriculture at a
time when government data itself shows that the agriculture sector is facing
a deflationary situation or a collapse of price realizations for the output
produced.

 

Even the much touted increase in capital expenditures have fallen victim to
the expenditure cuts, with revised estimates for 2025-26 being lower than
budgeted. On the other hand, the capital expenditures through resources of
public enterprises were lower in 2025-26 than in 2024-25 and are budgeted to
remain lower even in 2026-27.

 

State Governments and their ability to meet the aspirations of their people
are also being choked by the Modi Government's approach. The transfers to
states under centrally sponsored schemes, finance commission grants, and
other transfers has been cut by 2,03,801 crores in 2025-26 as compared to
the Budget Estimates. The Budget estimates for 2026-27 shows further a drop
of Rs. 59,456 crores compared to 2025-26 Budget Estimates. This is taking
place at a time when states are facing a severe financial crunch due to poor
GST revenue realizations and the VB-G RAM G has already imposed an effective
cut on state's resources by shifting part of the burden of expenditure on to
them.

 

The Finance Minister in her budget speech mentioned that the Modi
government's tenure has been marked by 'stability, fiscal discipline,
sustained growth, and moderate inflation'. What she failed to mention was
that the only stability has been in the distress of the working people
marked by rampant unemployment and limited earnings from work, while
'sustained growth' has marked only the incomes and wealth of the rich and
the corporate sector. It is this growing inequality that Budget 2026-27 is
going to further promote and further aggravate the crisis that is afflicting
the Indian economy. It is also a woefully inadequate response to the issues
arising from what is happening in the world economy.

 

Muralidharan

For CPI(M) Central Committee Office

 

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