February 10, 2026
Sougata Ray’s speech on the Union Budget for 2026-27
Sir, I rise to speak on the Budget. … Sir, I rise to speak on Budget. Abhishek Banerjee has already spoken on behalf of our Party on the budget. Without repeating him, I want to point out that this Budget shows that the Finance Minister is cruel towards West Bengal. I remember last year when Bihar elections were there, she gave all the projects to Bihar and then to Andhra Pradesh. This time, the Budget does not find mention of West Bengal at all, except for a freight corridor that is to happen from Dankuni to Gujarat. I strongly oppose this. The Finance Minister has been practically cruel on Bengal. An amount of Rs. 1,09,000 crore, due to West Bengal, has been held up, both on account of MGNREGA and the Prime Minister Awas Yojana. I demand again that the Finance Minister revise her position on this matter and do proper justice to Bengal. Speaking on this Budget, I feel ashamed as an Indian because this Budget is not made by the Government of India. Two days after the Budget, we had the so-called Indo-US trade agreement. How? Our tariffs were reduced to 18 per cent, but our exports were made free by America. This is the cruelest blow on Indian agriculturists, who are our bread givers. This Government always speaks that we have done the ‘Mother of all Agreements’ with the European Union, though the contours of the same are not clear. On the Indo-US Trade Agreement, where they have allowed free exports by the United States to India, it is not clear what are the other contours of the Indo-US Trade Agreement. There is apparently a difference of opinion between the Commerce and Industry Minister and the External Affairs Minister. It is shameful that India, which has the potential to be a great country, is subject to the vagaries of the opinion of a … Our Prime Minister is reported to have said, “Sir may I come and see you?” What is this? Maybe we have poverty, but we are a country with a great tradition, This is Gandhi’s country. We cannot bow down our head like this. I do not know why the BJP people are keeping quiet when the … I would not speak for very long, but I want to point out that this Budget seems like the Finance Minister was told by the Prime Minister not to make too many announcements. She has given no projects to Bengal. So, the Prime Minister must have told her that if any announcements are to be made, he will make it in Tamil Nadu, Kerala or West Bengal. That is why, this is not a Budget, this is tinkering, just playing around with a few small, small things and making small, small changes. I am quite ashamed that the Budget is like this. There are no major changes in the Budget on income tax slab rates. Implementation of the new IT Act will begin from April, 2026. There is only minor tinkering with doubling of electronic manufacturing outlay to Rs.10,000 crore. Duties on 17 drugs for cancer have been waived. Sir, Rs.1.34 lakh crore have been allocated for education, almost the same as last year. Then, what is this budget really for? You could have kept every figure exactly the same. You will notice that only the allocation for defence expenditure has seen a 15 per cent jump. There is also some mention of high-speed rail, but nobody knows when it will be implemented, . Sir, you may be surprised. You are from Kerala. You know that Kerala has got nothing from this Budget, not even for national waterways. Subsidies for food, fertiliser and fuel have declined by 4.47 per cent. Only textiles, leather and seafood have received a boost from budget proposals that cut customs duty on certain imports. Sir, India’s 7.4 million MSMEs will soon be beneficiaries of a Rs.10,000 crore advance. The deficit is pegged at 4.3 per cent compared to 4.4 per cent last year. But the Centre will have to borrow Rs.17.2 lakh crore in 2026-27 to bridge the fiscal deficit. The States’ share remains at 41 per cent even after the Finance Commission recommendations. This Budget fails the test of economic strategy. Sir, the impact of US tariffs on exporters must be declared by the Government. A protracted global trade deficit is a serious concern. China has forbidden the export of rare earths to India. They are not allowing tunnel boring machines into India. So, we are at loggerheads with both the US and China. Where is our foreign policy? We are losing on every count. Sir, the widening trade deficit with China is a major problem. The Gross Fixed Capital Formation remains low at around 30 per cent. The worst part is that this Government claims to be a great champion of the private sector. It is called the … Government. Yet, the private sector is not investing at all. What is the Finance Minister’s proposal for industry? There is deep distress among MSMEs. Widespread closures are taking place. Youth unemployment is rising. This is a very serious problem. Deteriorating urban infrastructure amid rapid urbanisation is another major challenge for the country. Every year, the Government announces new schemes. There are 24 such schemes that have not seen the light of day. Instead of announcing so many new schemes, the Finance Minister should have focused on completing the existing ones. But they did not do so. As a result, today we have youth without jobs. Manufacturing sector is failing. Investors are not investing capital. Tax exemptions amount to just one humane step. Tax exemption has been provided for motor accident compensation. The Budget completely ignores unemployment and social security. The allocation for the Union Labour Ministry is the same as in the last Budget. There is no scheme to increase job opportunities. The total Central outlay for urban development where the cities are supposed to be engines of growth, has fallen from Rs.96,700 crore to Rs.85,000 crore, a shrinkage of 11.6 per cent. India’s long-term economic security arrangement with Russia has gone. Russia has been our friend. With Trump threatening India, we have said that we will not buy Russian oil any more. Is this the way an independent country should function? India’s long-term security arrangement with Russia is not there. European Union is the mother of all unions. Nobody knows what that European Union Free Trade Agreement holds. There is a difference between the Foreign Minister and the Commerce and Industry Minister. The Finance Minister is saying, ‘Deregulate, simplify and reduce business friction.’ Some foreign companies that are providing cloud services are being exempted from duty till 2047. This is no Budget, Sir. We cannot even get a tunnel boring machine from China; no rare earth from China. Lastly, I would say that the Finance Minister is not here and the Minister of State is constantly conversing on the Uttar Pradesh politics. So, what to speak to him? He is not listening. He is not interested. … Make in India has failed; Atmanirbhar Bharat has failed; The Production Linked Incentive Scheme has failed. India needs to encourage investment. The Finance Minister has presented the Budget with her hands tied behind her back. On one hand, Trump is pulling at her hand; on the other hand, Modi is pulling at her hand. I am ashamed of such a Budget.
