"She did not address many issues": Kanimozhi slams Sitharaman's budget reply

Kanimozhi told ANI, "I don't think it was a reply to the discussion which happened in Parliament because a lot of pertinent questions were raised. But the Finance Minister actually was replying to particular state governments and making it very political. So, that is what she was targetting at. She did not reply to many of the issues which were raised."

Meanwhile, Samajwadi Party (SP) chief and former Uttar Pradesh Chief Minister Akhilesh Yadav alleged that the government "did not provide" any funds for the Maha Kumbh, which is taking place after 144 years.

Revolutionary Socialist Party MP NK Premachandran termed Finance Minister Sitharaman's reply as "totally disappointing."

He told ANI, "Most of the issues which we have raised have not been answered and the statement which she has given, as far as the allocation to the state is factually not correct also. She is always saying that it is increasing. Yes, it is increasing but what is in proportion to the gross tax revenue - it is declining. Though the financial commission has awarded 41 per cent of the divisible pool to the states, the states are getting only 33 per cent. It is declining..."

Earlier, Finance Minister Nirmala Sitharaman defended the government's capital budget allocations, stating that the government is using almost the entire borrowed resources for financing effective capital expenditure.

Replying to the marathon debate in the Lok Sabha on the 2025-26 Budget, Sitharaman said that effective capital expenditure is projected at Rs15.48 lakh crore, compared to Rs13.18 lakh crore in the revised estimates of 2024-25.

She added that the effective capital expenditure for 2025-26 is 4.3 per cent of GDP, compared to the fiscal deficit target of 4.4 per cent.

Capital expenditure (capex) is used to establish long-term physical or fixed assets. Effective capital expenditure includes core capital outlays and grants-in-aid to states for the creation of capital assets. Though grants-in-aid for capital asset creation are accounted for as revenue expenditure in the Budget, they contribute to the development of capital assets in the states, she explained.

"The difference between the two is minimal," she said, emphasising that the government is using almost the entire borrowed resources for financing effective capital expenditure.

"The borrowings are not going towards revenue expenditure, committed expenditure, or any other such purposes. They are being used solely for creating capital assets. So, in effect, the government intends to use about 99 per cent of borrowed resources to finance effective capital expenditure in the upcoming 2025-26 financial year," she added. (ANI)