Fiscal Deficit Reaches 5.8% Under NDA, Says P Chidambaram

In a recent statement, former Finance Minister and senior Congress leader P Chidambaram underscored the fiscal deficit differences between the UPA and NDA governments, emphasizing that the fiscal deficit stood at 4.5% in the UPA's terminal year (2013-14) and has risen to 5.8% in 2023-24 under the NDA.

In a post on X, Chidambaram said much has been made of the fiscal correction made by the NDA government and the fiscal deficit of 5.8 per cent in 2023-24. Since memories are short, I may jog the memories of the learned commentators. Under the UPA, the Fiscal Deficit in 2007-08 was 2.5 per cent. In the terminal year of UPA (2013-14) the Fiscal Deficit was 4.5 per cent. In the terminal year of NDA (2023-24) the Fiscal Deficit is 5.8 per cent, he said.

He pointed out that while the NDA government may highlight the economic impacts of the pandemic in 2020-21 and 2021-22, the UPA can similarly reference the difficulties faced during the International Financial Crisis in 2008-09 and the 'taper tantrum' in 2013-14.

He concluded by stressing the importance of avoiding overly simplistic narratives in economics, stating, The moral of the story is clear: there is no place for a bullhorn in economics, he said.

In response to the presentation of the interim Budget in Parliament, the opposition Congress accused the NDA government of favoring the wealthy in its economic and governance policies. They criticized the Budget for failing to address promises such as the creation of 2 crore jobs annually, controlling inflation, and doubling farmers' incomes.