'Misleading, Flawed...' - FM Nirmala Sitharaman Takes On P Chidambaram On Capex Claims

Finance Minister Nirmala Sitharaman has strongly refuted former Finance Minister P Chidambaram’s claims of a "cut" in capital expenditure, calling his comparisons "misleading" and based on "selective arithmetic." In a detailed response on X, Sitharaman defended the government's fiscal management, emphasizing that revisions from Budget Estimates (BE) to Revised Estimates (RE) are routine and reflect evolving priorities.

"Budget Estimates are prepared before the financial year begins and naturally evolve into Revised Estimates based on expenditure trends, implementation capacity, and emerging priorities. This is standard practice in public finance," she stated.

Sitharaman highlighted that FY 2024-25’s capital expenditure was impacted by factors such as the Model Code of Conduct during General Elections, extreme weather events, and lower-than-expected spending by states and central agencies. Many states also failed to submit Utilization Certificates, she added.

She noted that the capital expenditure BE for FY 2024-25 stood at Rs 11.11 lakh crore, an 11.11% increase from FY 2023-24’s Rs 10.01 lakh crore. Similarly, the RE for FY 2024-25 rose to Rs 10.18 lakh crore, reflecting a 7.3% increase over FY 2023-24’s RE of Rs 9.50 lakh crore. "There has been no cut in the Capex of the Central government," Sitharaman stressed.

The Finance Minister also responded to Chidambaram’s remarks on the Scheme for Special Assistance to States for Capital Investment (SASCI). "The Budget Estimate for SASCI of 2024-25 was Rs 1.50 lakh crore, while the RE was ₹1.25 lakh crore. Actual releases, however, stood at Rs 1,46,362 crore—an increase over the RE. What is there to be ‘speechless’ about?" she questioned.

Accusing Chidambaram of political rhetoric, she remarked, "Shri @PChidambaram_IN’s selective arithmetic and flawed comparisons between BE and RE of the same year may serve political rhetoric but do little for informed public discourse."