"2004-2005 Budget did not take name of 17 states...": Sitharaman rejects opposition allegations of discrimination

New Delhi [India], July 30 : With several opposition members attacking the government, alleging discrimination between states in the Union Budget, Finance Minister Nirmala Sitharaman hit back over the allegations and said budgets presented during the Congress-led UPA government also did not name most of the states.
Replying to the debate on the union budget in Lok Sabha, Sitharaman said names of states not finding a mention does not mean that funds and projects are not going to them.
Opposition parties alleged that projects had been announced only for Bihar and Andhra Pradesh in union budget and there was no mention of most other states.
"Many members have spoken about how they thought cooperative federalism only benefits a few states. I would like to humbly state that I am sure all the members know that in the budget speech not naming any state does not mean that no money goes to them. There was a misleading campaign that has been happening," she said.
"Budget of 2004-2005 did not take the name of 17 states. I would like to ask the UPA government members, did money not go to those 17 states? Did it stop then? Did they have any business to ask this question? I presume they did not stop money going to those 17 states because they did not name it. In 2009-10, 26 states of India did not have a mention. +So, when it is something for them, it is alright. If the same thing happens somewhere else, then it is not right...
"Cooperative federalism, states not being mentioned in the budget speech, doesn't have to be a very big issue. They all know, they have presented budgets in this country for decades. But when it is an ordinary Chaiwala, OBC leader who becomes Prime Minister, and he does administration well, you have a problem... Is he doing well, no, no, we will have to protest. This will not work and people are seeing this game," she added.
In her Budget speech in Parliament, Sitharaman announced projects for Bihar and Andhra Pradesh. JD-U is in power in Bihar and TDP in Andhra Pradesh. The two parties are crucial for survival of BJP-led NDA government at the Centre.
She also answered opposition allegations on price rise, unemployment and welfare of farmers.
Sitharaman said that SBI research report which was released in July 2024 said India created 12.5 crore jobs between 2014 and 2023 compared to only 2.9 crore during the 10 years of the UPA government.
"The unemployment rate has declined from 6 per cent in 2017-18 to a low of 3.2 per cent in 2022-23. Youth unemployment for the age group 15-29 years has declined sharply from 17.8 per cent in 2017-18 to 10 per cent in 2022-23."
Sitharaman said the National Commission on Farmers had recommended in 2006, Minimum Support Price should be at 50 per cent more than the weighted average cost of production and UPA government rejected MS Swaminathan report in 2007.
"This was not accepted by the UPA government. The cabinet note, which was drafted in July 2007, said MSP is recommended by the CACP on objective criteria considering the variety of factors involved. Therefore, setting an increase of at least 50 per cent on the cost may cause distortion in the market. In some cases, there may be a mechanical linkage between MSP and the cost of production per producer. After saying this, the UPA govt rejected the MS Swaminathan report in 2007...Congress Party can go on shedding crocodile tears about farmers, but no implementation was done in the last 10 years," she said.
"We have provided substantial financial support of Rs 17,000 crore in the Union Budget of the Union Territory of Jammu and Kashmir this year. It includes Rs 12,000 crore towards financing the cost of Jammu and Kashmir Police. That's a burden we want to take on our shoulders so that J&K has more flexibility to spend money on development activities. An additional central assistance of Rs 5,000 crores has also been provided," she added.
She said the government is complying with fiscal deficit trajectory and bring it down to below 4.5 per cent.
She said entrepreneurs were helping in building the country but a conspiracy is being spread against wealth creators.
"An image is being created that foreign investment is not safe in Indian institutions. Together, we must fight this conspiracy," she said.
Finance Minister Nirmala Sitharaman on Tuesday slammed TMC's Saugata Roy for his comments on the former's education and inequality in the country. She quoted Roy's comment in the Lok Sabha where he said: "I do not expect Finance Minister to be like Dr Manmohan Singh. She is not a PhD from Oxford. Not even like Chidambaram, who has a management degree from Harvard. She is from our own JNU. But the problem is she is bereft of new ideas."
She also targeted Sougata Roy over his remarks about her not being a trained economist and foreign education of some of her predecessors.
Sitharaman said a West Bengal minister she meets in GST meetings has education from university in India like she has and so has Chief Minister Mamata Banerjee and asked if they were bereft of ideas.
The Finance Minister said the government has provided substantial financial support of Rs 17,000 crore in the Union Budget of UT Jammu and Kashmir this year.
Sitharman said that India's inflation between 2020 and 2023 was much below than the global average.
She said the expenditure of the govt has grown exponentially.
"Today it is Rs. 48.21 lakh crore. It is projected to grow by 7.3 per cent over 2023-24 and 8.5 per cent over pre actuals of 2023-24," she said.
The Jammu and Kashmir Appropriation (No.3) Bill, 2024 was passed in Lok Sabha after Sitharaman's reply.
The House took up discussion and voting on the Demands for Grants under the control of the Ministry of Railways for 2024-25.