A Thoroughly Anti People, Anti Federal Budget : CPI M

New Delhi: The Polit Bureau of the Communist Party of India (Marxist) has sharply criticised the Union Budget 2026-27, calling it “thoroughly anti-people and anti-federal.”

In a statement, the party said the ninth Union Budget presented by Finance Minister Nirmala Sitharaman in Parliament reflects the Modi Government’s “uncritical commitment to promoting the narrow interests of a few big business houses and the rich and wealthy, at the cost of the working people and socially oppressed sections of society, as well as larger national economic interests.”

The statement criticised the government’s claim of ‘fiscal discipline’, describing it as “another way of providing tax concessions to the corporate sector and the rich, while squeezing expenditures necessary for improving the conditions of the working people.” It said this approach has resulted in “a massive contraction in revenues and slashing of expenditure” in 2025-26 and in the upcoming budget for 2026-27.

According to the CPI M, tax revenue realisations in 2025-26 fell far short of last year’s budget estimates. While shortfalls in income tax and GST collections were partially offset by growth in excise duties, the Finance Minister “took no note of this crisis in revenues” and did not mention the revenue implications of the new tax proposals. The party noted that anticipated revenues for 2026-27 are almost the same as the Budget estimates for 2025-26, “effectively indicating a sharp decline in the proportion of national income received as revenue.”

The party charged that the government is relying on expenditure cuts to reduce the fiscal deficit, describing it as “a naked assault on peasants and workers.” Several central and centrally sponsored schemes have faced drastic reductions compared to 2025-26, including Rashtriya Krishi Vikas Yojana, PM POSHAN, PM-SHRI, PM-JAY, PM-MSY, PMAY (Rural and Urban), and Crop Insurance Scheme. Allocations for Scheduled Castes, Scheduled Tribes, and North Eastern Areas have also been cut, along with reductions in agriculture and allied activities, rural development, education, health, and social welfare. The party highlighted that the Gender Budget has been slashed by 51,144 crores.

Further, CPI M pointed out that proposed expenditure cuts for 2026-27 include reductions in fertiliser, food, and petroleum subsidies, representing “an attack on agriculture at a time when government data shows the sector is facing a deflationary situation or a collapse of price realizations for output produced.” Even capital expenditure, touted as a key highlight of the budget, has been reduced, with revised estimates for 2025-26 lower than budgeted, and public enterprise capital expenditure lower than 2024-25 and budgeted to remain so in 2026-27.

The party also criticised the impact on state governments, noting that transfers under centrally sponsored schemes, Finance Commission grants, and other allocations were cut by 2,03,801 crores in 2025-26 compared to Budget Estimates. The Budget for 2026-27 shows a further drop of 59,456 crores. CPI M stated that this comes “at a time when states are facing a severe financial crunch due to poor GST revenue realisations and the Modi government has effectively shifted part of the burden of expenditure onto them.”

Reacting to the Finance Minister’s claims that the Modi government has ensured “stability, fiscal discipline, sustained growth, and moderate inflation,” CPI M said she failed to acknowledge that “the only stability has been in the distress of the working people, marked by rampant unemployment and limited earnings, while ‘sustained growth’ has benefited only the rich and corporate sector.” The party said Budget 2026-27 will “further promote growing inequality and aggravate the crisis afflicting the Indian economy,” describing it as a “woefully inadequate response to the challenges arising from the global economic situation.”