Finance and Economy News

P Chidambaram Criticizes Nirmala Sitharaman’s Reduced Budget for External Affairs Ministry: “Is She Doing an Elon Musk?”

Chidambaram Questions Budget Cuts for External Affairs Ministry

In a fiery address during the Rajya Sabha on Monday, Congress leader P Chidambaram raised concerns over the reduced budget allocation for the External Affairs Ministry in the Union Budget 2024-25, drawing a comparison to Elon Musk’s business strategies.

Highlights:

  • Chidambaram questions Finance Minister Nirmala Sitharaman for proposing a budget cut for the External Affairs Ministry.
  • External Affairs budget reduced by Rs 5,300 crore for FY 2024-25 compared to FY 2023-24.
  • Chidambaram alleges that the Union Budget is politically driven and lacks a clear philosophy.

Is India Shrinking its Global Presence?

Chidambaram pointed out the drastic budget cuts for the External Affairs Ministry, asking if the Indian government was shrinking the country’s global presence. In his speech, he questioned the finance minister’s rationale behind allocating only Rs 20,517 crore for the ministry in FY 2024-25, down from Rs 28,915 crore in FY 2023-24.

“Somebody must explain, are we shrinking our world presence? Are we closing down our embassies?”
said P Chidambaram, raising alarm over the substantial budget reduction.

Chidambaram’s “Elon Musk” Remark

The Congress leader suggested that the finance minister may be following the business model of Elon Musk, who is known for drastically restructuring his companies. This comment further fueled speculations about the government’s intentions behind slashing funds for external affairs.

Politically Driven Budget

Chidambaram also expressed skepticism about the political motivations behind the 2024 Union Budget, stating that it was “politically driven” and lacked a clear underlying philosophy.

“It is obvious that the Budget was politically driven, I shall not elaborate on that. There was no philosophy behind the Budget.”
he added, casting doubt on the strategic objectives of the fiscal plan.

The Bigger Picture: Impact on Foreign Policy and Diplomacy

The budget cuts raise questions about how India’s foreign policy and diplomatic outreach will be impacted in the coming year. Reductions in funding for the External Affairs Ministry could potentially affect embassy operations, diplomatic missions, and India’s ability to maintain its presence on the global stage.

As global geopolitical tensions grow and India takes a more active role in international affairs, critics argue that reducing the ministry’s budget could send the wrong message about India’s commitment to global leadership.

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