Below we publish the statements issued by various class and mass organisations, on the Union Budget 2025-2026

Centre of India Trade Unions (CITU)

THE Union Budget 2025-26 maintained a consistent and brazenly pro-corporate and anti-people, approach while presenting a deceptive facade of pro-people and pro-growth initiatives. The government, true to its pro-corporate bias, chose to ignore the stark findings of its own Economic Survey released just a day earlier. The survey revealed that wages and earnings for salaried and self-employed workers in 2023-24 remain below pre-pandemic levels, even as corporate profits soared to a 15-year high – an imbalance that directly contributes to an economic slowdown by squeezing consumption demand. This, in fact, exposes the true nature of the NDA government’s policies behind the ostensible Vikasit Bharat programme.

The ongoing economic slowdown and its devastating effects on the lives and livelihoods of the masses – combined with corporate fortunes reaching obscene heights – reflect a troubling perversion in the nation’s overall economic policy regime.

This situation calls for an expansionary budget funded by taxing corporations and the wealthy, who have profited excessively from the Modi regime’s policy bias without contributing meaningfully to quality job creation or national wealth. Despite numerous concessions, including direct resource transfers through various mechanisms over the past decade under the Modi regime, private investment has not grown significantly. This lack of investment stands in stark contrast to the meteoric rise in corporate profits, accompanied by worsening unemployment and an aggravating crisis of poverty.

But the Union Budget 2025 turns out to be contractionary, targeting a further reduction in the fiscal deficit to 4.4 per cent from 4.9 per cent last year. Combined with the continuation of hefty concessions awarded to the corporate sector on their tax obligations – and further direct transfers from the national exchequer through various production/capex incentive schemes, employment-linked incentives, and even via the Insolvency Bankruptcy Code (IBC) – this approach will further squeeze spending on improving people’s welfare and livelihoods. In line with this, the estimated increase in corporate tax collection is only 10.4 per cent, an insignificant rise when compared to the massive profits being generated by these corporations.

Aggressive privatisation through the National Monetisation Pipeline has been reiterated, with an ambitious target of raising Rs 10 lakh crores over the next five years to partially offset the revenue foregone in favour of private corporates, both domestic and foreign. This strategy will lead to the transfer of critical infrastructure – including power, oil, transport and highways, coal, various minerals (including precious minerals), and public service networks – to the private sector. The plan aims to withdraw State involvement from these strategic segments of the national economy, fundamentally altering its foundation to the detriment of national interests and security.

The pace of privatisation has further accelerated under the deceptive guise of the Public-Private Partnership (PPP) model, extending from rural to urban development and spanning sectors from roads to space technology. In reality, this means that public investment is being exploited for development while operational control is shifted to private hands. While electricity employees across the nation protest against privatisation, the union budget has raised the loan borrowing limit for state governments by 0.5 per cent of the GSDP – on the condition that they advance power sector privatisation, particularly in the distribution segment. Moreover, allocations for states have been reduced in real terms compared to the previous year.

Additionally, Foreign Direct Investment (FDI) in the insurance sector has been increased to 100 per cent from 74 per cent, effectively achieved through the Finance Bill after the government failed to pass the Insurance Amendment Bill due to employee protests. Several proposed funds –such as the Maritime Development Fund, Urban Challenge Fund, and India Infrastructure Project Development Fund – are based on the PPP model, meaning that public funds will be exploited by private interests for private gains, a clear precursor to further privatisation.

The government has succumbed to US pressure to open up the nuclear energy sector to private players, proposing amendments to the Atomic Energy Act and the Civil Liability Act for Nuclear Damage.

While previous initiatives – the National Manufacturing Policy (2010), the Production Linked Incentive (PLI) Scheme (2019) of Rs 1.97 lakh crores, the Capex Incentive of Rs 76,000 crores, and last year’s Employment Linked Incentive (ELI) Scheme of Rs 2 lakh crores – were touted as measures to raise the manufacturing sector’s contribution to GDP to 25 per cent, they yielded little more than the channeling of public funds to private entities. In this context, the present budget introduces a so-called National Manufacturing Mission aimed at furthering the ‘Make in India’ initiative under the guise of supporting MSMEs. However, the investment and turnover thresholds have been raised to incorporate larger industries into the MSME category, effectively ensuring that public funds benefit big corporations.

It is shocking that the Railway Budget has been reduced to Rs 2.55 lakh crores from Rs 2.62 lakh crores last year. Moreover, the allocation for railway safety has been cut by Rs 322.50 crores, even as accidents – including fatal ones – continue to rise alarmingly. This further reduction signals a policy approach that appears to be paving the way for privatising railway operations through the National Monetisation Pipeline (NMP).

In her speech, the finance minister lauded the Saksham Anganwadi and POSHAN 2.0 (formerly ICDS) schemes, announcing that “cost norms for these nutritional programmes will be enhanced.” However, this promise proved deceptive: the budget allocation for the Saksham Anganwadi and POSHAN 2.0 scheme for 2025–26 stands at Rs 21,960.00 crores, compared to Rs 21,809.64 crores in 2023–24 – a mere increase of Rs 150.36 crores. With last year’s budget estimated at Rs 21,200.00 crores, inflation-adjusted figures reveal an actual reduction in allocation.

The cost norms for supplementary nutrition were last revised in 2017. Even if one considers the nominal increase, for approximately 10 crore beneficiaries (8 crore children and 2 crore pregnant and lactating mothers for 300 days a year), the resulting increase translates to a paltry 5 paise per child after seven years.

The current budget allocation for the Mid-Day Meal (MDM) scheme is only Rs 12,500.00 crores – drastically lower than the Rs 12,800 crores allocated in 2022-23. Additionally, the cost norms for food and the wages of mid-day meal workers were last revised in 2009, and the honorarium/incentives for ASHA workers have not been updated.

While the Indian economy faces a demand-constraint crisis and private sector capex remains stagnant, the government’s capital expenditure from the previous budget remains largely unspent. In the current budget, Rs 10 lakh crores have been allocated – less than before –primarily focusing on infrastructure that is already earmarked for the controversial NMP.

The Centre of Indian Trade Unions (CITU) decries this union budget as a deceptive tool for furthering loot and plunder, while ignoring the concerns and plight of the nation’s working class. CITU calls on workers and all sections of the public to join a nationwide protest on February 5, 2025 against this anti-worker, anti-people, and anti-national budget that serves only the interests of neoliberal forces.

All India Kisan Sabha (AIKS)

The union budget presented by the Finance Minister Nirmala Sitharaman is anti-poor and tailor-made for the corporate cronies and the rich. Even as the contribution of agriculture and allied sectors to the GDP has increased to 16 per cent, the budget allocation for agriculture and allied activities is lower than the Revised Estimates of 2024-25. While the Revised Estimates of 2024-25 was Rs 3,76,720.41 crores, the 2025-26 allocation is only Rs 3,71,687.35 crores. When inflation is accounted for, this is a huge cut in allocation. Real expenditures for agriculture and allied activities have steadily fallen since 2020-21; farmers are clearly not the priority of the BJP-led NDA government. There is nothing in the budget to ensure legal guarantee of MSP, expand procurement or free farmers from indebtedness. Even the Parliamentary Standing Committee recommendation to ensure remunerative prices has been thrown to the winds.

The increased share of agriculture sector in employment rising from 44.1 per cent in 2017-18 to 46.1 per cent in 2023-24 indicates a reverse migration from urban areas as there are no employment opportunities. In an extremely insensitive manner, the budget allocation for the MGNREGA has been kept at just Rs 86,000 crores. There is no emphasis for generation of employment in the countryside. The government is stopping all funds to the National Institute for Rural Development and there is zero allocation in the budget for it; this also is a telling reflection on the BJP-led NDA government’s apathy towards rural development and the rural poor. Food subsidy is lower than the allocation made in 2024-25. The allocation for distribution of pulses to state/union territories for welfare schemes is zero, while the last budget had allocated Rs 300 crores. The much-hyped exemption of income tax up to Rs 12 lakh is aimed at quick electoral gains; increasing prices, high levels of indirect taxation, increasing food, health, education, travel expenses will all bring to nought if at all any benefit is accrued through this exemption.

The allocation to the flagship programme of the government, the Pradhan Mantri Fasal Bima Yojana for crop insurance has seen a drastic cut from Rs 15,864 crores to Rs 12,242.27 crores.  There has been no increase in allocation to the Pradhan Mantri Kisan Samman Nidhi and the scheme has had no adjustment even for inflation since 2019 when it was first initiated. Fertiliser subsidy has been cut from the Rs 1,71,298.50 crores to Rs 1,67,887.20 crores, a cut of Rs 3,411.30 crores.  The hollow claim of a Six-Year Initiative of Atmanirbharata Mission for Pulses is exposed when the total allocation for the Mission is merely Rs 1000 crores. This claim ironically comes from a government that just 10 days ago extended duty-free imports of arhar/tur and are incentivising farmers in Mozambique and other countries. In 2024, imports of pulses almost doubled to 60 lakh tonnes (between January and November). There is also nothing new in the claim that NAFED and NCCF will procure pulses for the next four years to ensure price stability; it only exposes the fact that the private sector will not be willing to buy at MSP.  A Dhan Dhyan Krishi Yojana has been announced claiming that it will cover 100 districts with low yields and benefit 1.7 crore farmers but there is no separate allocation for it. It only is a rehashing of existing programmes. No allocation has been made for Price Stabilisation Fund for Rubber or for mitigation of the wild animal menace.

AIKS calls upon units across the country to burn copies of the budget and make the SKM-JPCTUs protest on February 5 a massive success.

All India Agricultural Workers Union (AIAWU)

THE latest union budget presented by the central government is a brutal assault on the agricultural workers, farmers, working people, students, and marginalised communities of our country. Instead of addressing the real concerns of the people, the government has chosen to further its pro-corporate and anti-poor agenda by drastically cutting allocations to critical social sectors. Overall, there is a 5 per cent increase in the volume of the budget, which should be reflected in the head-wise allocations; however, this is not the case with the budget allocations.

Last year, Rs 265 crores were allocated for rural development, but the revised estimate was reduced to Rs 190.7 crores, indicating that the government failed to utilise even the original allocation. This year's budget allocation barely matches last year's initial estimate. Notably, 30 per cent of the allocated funds went unspent, highlighting the NDA government's complete failure to recognise the critical need for resources to support the livelihoods of rural communities and drive overall rural development.

While unemployment and poverty continue to rise, the government has failed to increase spending on MNREGA, a vital lifeline for millions of rural workers. The allocation for the year 2025-26 remains stagnant at Rs 86,000 crore, the same amount as the last three years. Last year also i.e., for 2024-25, the government had allocated Rs 86,000 crore for MNREGA despite facing huge demand, no additional funds have been allocated for this “demand driven” scheme. Reports from January indicate a Rs 4,315 crore shortfall in wages, despite the issuance of FTOs (fund transfer orders). MNREGA has faced consistent underfunding, making work unavailable for those in need. There is a demand of Rs 2.50 lakh crores for MNREGA and the parliamentary committee has recommended an increase in both the central budget allocation and the minimum wages under MNREGA, but the dictatorial central government has dismissed the voice of Parliament. This neglect will only worsen the already dire conditions faced by rural populations, who are grappling with hunger and widespread unemployment.

Similarly, the budget allocation for agriculture and allied activities this year is lower, at Rs 371.7 crore, compared to the revised estimates of Rs 376.72 crore from the previous year. In fact, real expenditures for agriculture and allied activities have steadily declined since 2020-21. Allocations for crop insurance have been reduced from Rs 15.8 crores (RE) last year to just Rs 12.2 crores this year. Additionally, allocations for PM Kisan have remained fixed since 2019, with no adjustments made for inflation.

The allocation for fertilizers, which was Rs 164.1 crore in 2024-25, and Rs 182.96 crore was spent in the revised budget. However, the allocation for 2025-26 has been reduced to Rs 156.45 crore. This reduction raises concerns about the impact on farmers, who are already grappling with rising input costs. Instead of prioritising the needs of the farming community, the budget continues to appease corporate giants, leaving rural India further marginalised. India's farmers continue to struggle with their legitimate demand for a Minimum Support Price (MSP) based on C2+50 per cent and a guarantee of procurement for agricultural produce. Yet, there is no mention of MSP in this year’s budget. This omission is a betrayal of the agreement made with farmers after the historic kisan struggle, further highlighting the government's disregard for the welfare of the agricultural community.

The allocation for food subsidy has been slashed to Rs 203,420 crore for 2025-26, down from Rs 205,250 crore in 2024-25. This reduction comes at a time when food security is at its most critical, with millions facing hunger and malnutrition across the country. The cut in food subsidy further exacerbates food insecurity, especially among the most vulnerable sections of society. This move is an affront to the very people who depend on government support to feed their families, intensifying rural distress migration and exacerbating the hunger crisis.

The budget continues to underfund crucial programmes aimed at uplifting the rural poor. With the allocations for the National Rural Drinking Water Mission (NRDWM) reduced from Rs 70,162.9 crore in 2024-25 to Rs 67,000 crore in 2025-26, the quality of life in rural areas is expected to worsen. Additionally, there is no increase in Pradhan Mantri Awas Yojna (PMAY-Rural) allocations. It is important to mention that the government failed to spend the last year’s allocations and only Rs 32 crores were spent in RE for the year 2024-25. This is insufficient to meet the growing housing needs of rural families, where homelessness continues to be a widespread issue.

There is no significant increase in the budget for the Department of Social Justice and Empowerment, from Rs 13,000.2 crore in 2024-25 to Rs 13,611 crore in 2025-26. It is insufficient to address the systemic inequities faced by marginalised communities, including dalits, adivasis, and other backward classes. The government has failed to allocate adequate resources to bridge the widening gap in social justice and equality.

The central working committee of the All India Agricultural Workers’ Union rejects this anti-people budget and calls upon its units to mobilise against these attacks on our rights and livelihoods.We demand an immediate rollback of these cuts and increased investment in MNREGA, education, healthcare, agriculture, and welfare programmes to ensure the well-being of the people.

National Platform for the Rights of the Disabled (NPRD)

THE National Platform for the Rights of the Disabled (NPRD) records its strong protest over the continued disdain shown towards India’s disabled population by the Modi government.

Though a 4 per cent increase is seen in the total allocation made to the nodal department, the Department of Empowerment of Persons with Disabilities, as compared to last year, it falls far short of what disability rights organisations and activists have been demanding for long. The total allocated to the DEPwD as percentage of overall budget is a mere 0.025 per cent.

The Scheme for the Implementation of Persons with Disabilities Act (SIPDA), which has a very important role to play not only for support to the flagship programmes like the Accessible India Campaign but also for the implementation of the Rights of Persons with Disabilities Act, has seen a further reduction in allocation this year. From the Rs 240.39 crores allocated in 2022-23 it was reduced to Rs 135.33 crores last year, which has been cut further to Rs 115.10 crores this year. The total allocations for various central sector schemes/projects have also been reduced from Rs 758.01 crores budgeted last year to                Rs 741.80 crores in the current year.

Further, exposing the government’s total disregard, notwithstanding its lofty claims, is the fact that even from these meager allocations, there has been a consistent underutilisation of funds over the years.

The warning sounded by the Economic Survey, for the second consecutive year in a row around mental health issues, unfortunately, has been totally disregarded. Except for a slight increase in allocations to a few institutes, the government seems oblivious of the huge crisis that is looming. Given these circumstances, it is alarming to note that the allocations for the telemental health programme has been cut from Rs 90 crore allotted last year to Rs 79.60 crore this year.

That the poor and the marginalised do not figure in its priorities has been more than underlined by its refusal to increase allocations for the Indira Gandhi National Disability Pension Scheme (IGNDPS). Ignoring the recommendations made by the Department Related Standing Committee for a substantial increase in disability pensions, the allocation to the IGNDPS continues to remain the same as last year at Rs 290 crore, notwithstanding the increase in the allocations made to the Ministry of Rural Development. The refusal to enhance allocations for MNREGA will also adversely impact disabled people who seek work under the scheme.

Lack of employment opportunities compels a sizeable section of the disabled population to be dependent solely on pensions. However, the central share has been static at Rs 300 since 2012 exposing the total apathy with which the government treats the marginalised. The central government has also refused to revisit the exclusionary nature of the scheme which caters to a mere 3.8 per cent of the disabled population identified by the 2011 census.

Demanding the enactment of a Right to Pension Act, increasing the pension from Rs 300 to Rs 5000 and widening its coverage to include all disabled persons recognised by the RPD Act, the NPRD will hold an assembly of disabled persons in Delhi on February 10, 2025.