In a sharp critique of the Union Budget 2025, C H Venkatachalam, General Secretary of the All India Bank Employees Association (AIBEA), has termed it “very disappointing,” accusing the government of neglecting the fundamental issues facing the people and the economy.
Venkatachalam expressed deep concern over the government’s failure to introduce measures that address rising unemployment, growing income inequality, and the persistent struggles of key sectors such as agriculture, MSMEs, and public sector enterprises.
He criticized the government for focusing on GDP growth figures that, according to him, primarily benefit large corporates, leaving the poor and working-class citizens behind.
Highlighting the unemployment crisis, Venkatachalam said that educated youth continue to struggle for decent jobs, making the government’s claims of growth and development seem hollow.
The AIBEA argued that economic growth without job creation is a myth, adding that the budget’s rhetoric on poverty eradication contradicts the reality of increasing poverty and widening income disparities.
The AIBEA also raised concerns about inflation, declining rupee value, and external threats such as potential U.S. tariffs, which Venkatachalam said were not adequately addressed.
Venkatachalam criticized the government’s approach to agriculture, pointing out that despite lofty statements about the sector being the engine of growth, farmers’ demands—especially for a Minimum Support Price (MSP) based on the Swaminathan Committee recommendations—have been ignored.
The MSME sector, which has been struggling since the twin shocks of demonetization and GST implementation, received little attention in the budget, according to Venkatachalam. He warned that the absence of a revival package for MSMEs would further worsen the unemployment crisis.
Similarly, he questioned the government’s claims of boosting health and education without significant budgetary allocations.
On the public sector front, the AIBEA criticized the government’s push for privatization through an expanded Public-Private Partnership (PPP) model and increased monetization targets.
The decision to allow 100% FDI in the insurance sector was labeled “retrograde,” and Venkatachalam condemned the government’s plan to disinvest major stakes in five public sector banks despite their reported profitability.
He alleged that corporate loan defaults are being settled favorably for defaulters through mechanisms like the Insolvency and Bankruptcy Code (IBC), leaving banks to bear substantial losses through forced haircuts.
The budget also failed to address the long-standing demand of bank employees to revert to the old pension scheme, Venkatachalam noted. Additionally, he criticized the government’s silence on the sudden increase in income tax burdens related to employee perquisites.
In his statement, Venkatachalam described the budget as a missed opportunity to address critical economic challenges, stating, “On the whole, this Budget is a big disappointment.”