Senior Congress leader P Chidambaram on Sunday expressed concerns over the Union Budget 2026, questioning the government’s approach to trade, investment, and defence expenditure.
‘Have they mentioned the penal tariffs imposed on the United States?’
In an exclusive interview with ANI, he said, “There is a tariff threat. There is a penal tariff in India. What is she doing about it? Why has she not even mentioned it in the budget? Have they mentioned the penal tariffs imposed on the United States? The growing trade deficit, especially with China? The low gross fixed capital formation and the private sector’s reluctance to invest in India? The uncertain outlook for FDI flows and persistent portfolio investment outflows.”
Chidambaram flags unanswered issues
Senior Congress leader added, “These are questions which should be addressed in the budget. These are the issues which concern the country. These are the issues which concern the economists. These are the issues which concern investors. Therefore, these concerns must be addressed. After you address them, we can weigh the merits or demerits of your answer But you don’t even address them What do I say?”
Defence share of GDP drops
On defence allocation, Senior Congress leader P. Chidambaram said India has not increased defence spending in real terms, noting that while the allocation appears higher, as a proportion of GDP it has fallen from 2.3% in 2013-14 to 1.9% in 2026, and as a share of total expenditure from nearly 16% to 14.5%.
Defence outlay shrinks: Chidambaram
“India has not hiked the defence budget. I’ll tell you. India seems to have allocated more money for defence. I don’t disagree. But as a proportion of GDP and as a proportion of total expenditure, it is less than what it was in 2013-14. For example, in 2013-14, according to the numbers that I have, the defence expenditure as a percentage of GDP was as high as 2.3%. This year it is 1.9%. As a proportion of total expenditure, it was as high as 16%… close to 16% in 2013-14. Today it is 14.5%,” he said.
