China, crony capitalism figure in Rahul Gandhi’s criticism of Union Budget

The Congress party said the budget was a case of "wrong diagnosis and prescription" and that Sitharaman could have been "brave" by extending help to the poor, but chose to be "timid".

After criticising the Centre for what he said was its plan to handover India's assets to “crony capitalists”, Congress leader Rahul Gandhi on targeted the government over the allocation to the defence sector in the Union Budget presented by finance minister Nirmala Sitharaman. The finance minister has set aside ₹4.78 lakh crore for military spending in the budget for 2021-22, including ₹1.35 lakh crore for buying weapons and systems. The increase comes at a time when India is locked in a border row with China. The government has also budgeted ₹1.75 lakh crore from stake sale in public sector companies and financial institutions, including two public sector banks and an insurance company, in the next fiscal.

Congress leader Rahul Gandhi at Parliament House complex, on the day of Budget 2021-22 presentation, in New Delhi. (PTI)

"China occupied our territory & killed our soldiers. PM spends Diwali with them for PR photo-ops. Why hasn't he increased the Defence Budget for them," Gandhi tweeted. "Forget putting cash in the hands of people, Modi government plans to handover India's assets to his crony capitalist friends," he said moments after the presentation of the Union Budget.

Sitharaman hit back at Gandhi's claim that the Budget favours crony capitalists, saying the Congress-ruled government in Kerala in the past had handed over a port in the state to one of the businessmen. The finance minister also said he repeats this particular question every 15 days. "The party which even today does not know to explain if I take one example of Kerala under Congress giving away seaport development on an invitation basis to one of the crony capitalists that he is talking about," she said.

"Can he (Gandhi) explain as to how for developing Vizhinjam port a crony capitalist, I would not call him that but he uses that word, was invited by the Congress party," she said.

She was referring to the invitation to the Adani Group, who Gandhi referred to as crony capitalist friends of the Modi government, to develop the Vizhinjam port in the southern state. Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest port developer and part of the Adani Group, had formally begun developing the international transhipment project in Vizhinjam in December 2015.

Gandhi’s Congress party also said the Union Budget was a "let down like never before" and claimed that it will unravel soon as it described the financial document as one that has deceived the people of India, especially the poor, the working class, migrants and farmers. The party also described the imposition of cess on petrol and diesel in the budget as a "vengeful act" against the thousands of farmers who took out the tractor rally.

The Congress party said it was a case of "wrong diagnosis and prescription" and that Sitharaman could have been "brave" by extending help to the poor, but chose to be "timid".

Before Sitharaman presented the budget, Gandhi had also said it should provide support to small and medium enterprises, farmers and workers, and generate employment. Gandhi had also demanded an increase in healthcare budget and hike in defence expenditure to safeguard the country's borders. "Budget 2021 must: Support MSMEs, farmers and workers to generate employment. Increase healthcare expenditure to save lives. Increase defence expenditure to safeguard borders," he had tweeted.

(With agency inputs)