Ahead of the Union Budget 2025, the Congress Party launched a fierce critique of the government’s economic stewardship, painting a grim picture of the nation’s economic state. Senior Congress leader and former Finance Minister, P. Chidambaram, slammed the government for its mishandling of key economic indicators, pointing to a slowdown characterised by soaring inflation, stagnant wages, massive youth unemployment, and widening income inequality.
In a press conference at Congress headquarters on January 30, 2025, Chidambaram warned that economic growth might plummet by as much as 2% compared to the previous year. His remarks came after releasing the ‘Real State of the Economy 2025’ report, compiled by former party MP Rajeev Gowda and his team. “The economy is undeniably in a slowdown,” he asserted, emphasising that despite government claims to the contrary, the reality was starkly different.
Chidambaram highlighted the alarming lack of new job creation, with youth unemployment hovering around 40%. He sharply criticised the government’s approach of distributing appointment letters, arguing it merely filled vacant posts rather than creating new opportunities. Moreover, wages have remained stagnant for years, he added, leaving the majority of the population grappling with financial hardship.
Inflation, too, was singled out as a persistent burden on the public. Chidambaram pointed to double-digit inflation in essential sectors such as food, education, and healthcare, which has been raging for the past few years. “There is no respite,” he lamented. Income inequality was another sore point. While the top 20-30% of the population may be thriving, the remaining 70%—particularly those at the bottom—are subsisting on a meager ₹100-150 a day. “The gap between the rich and the poor is widening,” Chidambaram declared, accusing the government of neglecting the issue.
He also claimed that the government has deliberately ignored many of the uncomfortable facts presented in the report. “The real state of the economy is buried, while the government continues to peddle its version of an unreal narrative,” he said.
With the Union Budget set to be presented by Finance Minister Nirmala Sitharaman on February 1, the Congress’ scathing assessment serves as a pointed counter to the official narrative, underscoring deep concerns over the country’s economic trajectory.