Finance Minister Nirmala Sitharaman delivered a pointed criticism of the Congress party during her address in the Rajya Sabha regarding the Union Budget for 2026-27. She accused the opposition of shedding “crocodile tears” over the issue of increasing national debt, while simultaneously advocating for greater borrowing and fund allocations to states. Sitharaman emphasized the government’s commitment to a principle of prudent borrowing, stating, “I would like to say that the government cannot borrow excessively. That is a principle that guides us.”

Focus on Outcomes Over Expenditure

During her speech, Sitharaman highlighted a philosophical divide between her administration and the Congress party. She remarked that while Congress is fixated on the amount spent, her government prioritizes tangible outcomes from financial allocations. “We say that we will give you money, but you have to give us outcomes. We want results. The Congress is worried about spending; we are worried about results,” she asserted, underlining her perspective on fiscal responsibility and accountability.

Parliamentary Debate on Fiscal Health of States

An exchange occurred between Finance Minister Sitharaman and Mallikarjun Kharge, the Leader of the Opposition in the Rajya Sabha, regarding the fiscal situation in Tamil Nadu. Sitharaman responded to concerns expressed by DMK leader P. Wilson about the rising national debt by reiterating the shared responsibility between the Centre and the states to manage debt levels effectively. “He talked about rising debt and how that’s not good. I just want to highlight the facts. The principle is one. We have to take care of reducing debt, whether it be at the Centre, state, or everywhere,” she stated.

Highlighting Tamil Nadu’s Debt Issues

In her remarks, Sitharaman referenced comments made by Edappadi K. Palaniswami, the former Chief Minister of Tamil Nadu. She noted the significant increase in the state’s debt under recent administrations. “He said for 73 years, successive governments in Tamil Nadu accumulated roughly Rs 5 lakh crore in total debt. But in just four years under the DMK government since 2021, Rs 4.56 lakh crore has been added to this pile,” she indicated, which sparked a considerable reaction in the house.

Opposition’s Response to Budget Discussions

In reaction to Sitharaman’s statements on Tamil Nadu’s financial condition, Kharge contested the relevance of her comments during the session dedicated to discussing the Union Budget. “We’ll take her advice, but the Tamil Nadu government has committed nearly 4 lakh crores, and earlier it was this and that. Are you speaking on the Tamil Nadu budget, or are you speaking on the Indian government budget? This is not fair… It has nothing to do with this house. This is unfair, and I condemn it,” he responded, highlighting the ongoing tensions between the ruling party and the opposition during the budget session.

Upcoming Schedule of the Budget Session

The Budget Session commenced on January 28 and consists of 30 sittings over a period of 65 days, set to conclude on April 2. In a procedural move, the two Houses will take a recess starting February 13, before resuming on March 9 to allow Standing Committees to review the Demands for Grants from various ministries and departments.