Rahul Gandhi says Budget is 'blind to real crises', Sitharaman hits back

Tearing into the Centre over the Union Budget for 2026-27, Leader of the Opposition in the Lok Sabha Rahul Gandhi on Sunday (February 1) dubbed it as "blind to India's real crises".

The Congress MP further alleged that burning issues such as job scarcity for youths, faltering manufacturing sector and plight of farmers, along with global challenges, have been ignored.

"Youth without jobs. Falling manufacturing. Investors pulling out capital. Household savings plummeting. Farmers in distress. Looming global shocks - all ignored," stated Rahul in a post on X.

"A Budget that refuses course correction, blind to India’s real crises," he added.

Finance Minister demands facts

Refuting Rahul's charges, Union Finance Minister Nirmala Sitharaman asserted that the government’s proposals were designed to cushion ordinary citizens amid global economic uncertainty.

Also Read: Budget leaves TN feeling snubbed ahead of polls; 'no projects', says Kanimozhi

Responding to questions on Rahul's remarks, Sitharaman said political criticism was part of democratic discourse but argued that it needed to be grounded in facts.

“Politically, you want to criticise, you're welcome, please do it. But if you want to give me the facts on which you're basing your argument, I'm willing to hear and willing to reply to that,” she said as quoted by ANI.

Questions 'course correction' remark

The Finance Minister said she did not understand the reference to “course correction” made by Rahul, maintaining that the economy’s fundamentals remained strong despite external headwinds.

Also Read: Budget 2026 showers Uttar Pradesh with a bagful of goodies

“I don't know what course correction he is referring to. The economy and its fundamentals are strong,” Sitharaman said, pointing to ongoing global uncertainty affecting multiple sectors.

She said the Budget had prioritised targeted interventions for vulnerable segments, including small and medium enterprises, farmers and rural workers. According to her, schemes had been rolled out across sectors such as textiles and leather, alongside measures aimed at value addition in agriculture, women entrepreneurs and self-help groups.

'Govt ready for substantive arguments'

“These are ways in which we are reaching out to the common small people to make sure that they don't have to face big changes in their lives because of any volatility coming from outside,” Sitharaman said, adding that the intent was to shield households from global economic shocks.

Also Read: Repackaged Budget sops for Bengal irk state players: 'Humpty Dumpty Budget'

While acknowledging the political nature of the criticism, the Finance Minister reiterated that the government was prepared to engage with substantive arguments. She maintained that the Budget’s focus remained on stabilising livelihoods and sustaining growth at a time when international conditions continued to remain uncertain.

The backdrop

In her speech, Union Finance Minister Sitharaman announced that the target for capex will be raised to Rs 12.2 lakh crore for FY27 from Rs 11.2 lakh crore earmarked for the current fiscal year.

Also Read: Budget 2026-27: How the government earns and spends every rupee

She also announced a slew of measures to boost infrastructure in the country, including in tier-2 and tier-3 cities. The budget came in the backdrop of global uncertainties, trade frictions and US tariffs and slowdown in exports.

This is the third budget of the BJP-led NDA government in its third term in office.

(With agency inputs)