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12 Feb 2026·Source: The Hindu
4 min
Polity & GovernanceEconomySocial IssuesNEWS

Opposition Criticizes Centre on Inequality, 'Atmosphere of Fear' During Budget Debate

Opposition MPs voice concerns over inequality, unemployment, and social divisions.

Opposition Criticizes Centre on Inequality, 'Atmosphere of Fear' During Budget Debate

Photo by Aquib Akhter

Opposition members in the Lok Sabha voiced concerns over growing inequality, low per capita income, and unemployment during the Union Budget debate. Congress MP K.C. Venugopal stated that an "atmosphere of fear and hatred" hinders economic growth, citing attacks on churches and controversial statements targeting minorities.

He also raised concerns about the rupee's depreciation, high youth unemployment, and wealth concentration. BJP leader Anurag Thakur criticized Rahul Gandhi, while in the Rajya Sabha, opposition members highlighted income inequality and stagnant wages for ASHA and anganwadi workers. Trinamool Congress MP Saket Gokhale pointed out the disparity between India's overall GDP ranking and its per capita GDP.

Former PM H.D. Deve Gowda emphasized the need for employment-centric policymaking.

Key Facts

1.

Opposition members raised concerns about growing inequality, low per capita income, and unemployment during the Union Budget debate.

2.

Congress MP K.C. Venugopal stated that an 'atmosphere of fear and hatred' hinders economic growth.

3.

Venugopal cited attacks on churches and controversial statements targeting minorities.

4.

He also raised concerns about the rupee's depreciation, high youth unemployment, and wealth concentration.

5.

BJP leader Anurag Thakur criticized Rahul Gandhi.

6.

RJD MP Sanjay Yadav said that while India was the world’s fourth-largest economy, it ranked much lower on the per-capita income scale.

7.

CPI(M) MP V. Sivadasan argued that wages for ASHA and anganwadi workers had not been revised for a decade.

8.

Trinamool Congress MP Saket Gokhale claimed that urban Indian youth now have lower purchasing power than young people in several conflict-hit countries.

UPSC Exam Angles

1.

GS Paper 2: Issues relating to poverty and hunger

2.

GS Paper 3: Inclusive growth and issues arising from it

3.

Potential for statement-based MCQs on government schemes and their impact

Visual Insights

Key Economic Concerns Highlighted in Budget Debate

Highlights key economic concerns raised by the opposition during the budget debate, including income inequality, unemployment, and rupee depreciation.

Richest 1% Own Over
40%

Oxfam report (2023) highlighted extreme wealth concentration, raising concerns about equitable distribution of economic benefits.

Per Capita Income
₹1.72 lakh

India's nominal per capita income in 2023-24, reflecting the average income level. However, it doesn't reflect income distribution.

More Information

Background

The concerns raised during the budget debate regarding inequality and economic disparities have historical roots in India's socio-economic structure. The concept of economic inequality has been a persistent challenge, dating back to the colonial era and continuing through various phases of economic development. Addressing this requires understanding the historical context of land ownership, access to resources, and social stratification. Over time, government policies have attempted to address inequality through various measures, including land reforms, progressive taxation, and social welfare programs. The introduction of the Five-Year Plans aimed to promote equitable growth and reduce disparities. However, the impact of these policies has been varied, and inequality remains a significant concern. The debate often revolves around the effectiveness of different approaches, such as trickle-down economics versus targeted interventions. Several constitutional provisions and legislative measures are relevant to addressing inequality. The Directive Principles of State Policy in the Constitution emphasize the state's responsibility to promote social and economic justice. Additionally, various laws and schemes have been enacted to uplift marginalized communities and reduce disparities. These include reservation policies, rural employment programs, and initiatives to promote education and healthcare access.

Latest Developments

Recent government initiatives have focused on inclusive growth and poverty reduction. Programs like PM-KISAN aim to provide income support to farmers, while schemes like MGNREGA offer employment opportunities in rural areas. The effectiveness of these programs in addressing inequality is a subject of ongoing debate. Different stakeholders have varying perspectives on the issue of inequality. Some argue that economic growth is the primary driver of poverty reduction, while others emphasize the need for targeted interventions to address specific disparities. Institutions like NITI Aayog play a role in formulating policies and strategies to promote inclusive growth. The future outlook involves continued efforts to promote equitable development and reduce inequality. Government targets include improving access to education, healthcare, and employment opportunities for all sections of society. Addressing inequality requires a multi-faceted approach that combines economic growth with social justice.

Practice Questions (MCQs)

1. Consider the following statements regarding economic inequality in India: 1. Opposition members in the Lok Sabha voiced concerns over growing inequality during the Union Budget debate. 2. Congress MP K.C. Venugopal stated that an "atmosphere of fear and hatred" hinders economic growth. 3. Trinamool Congress MP Saket Gokhale pointed out the disparity between India's overall GDP ranking and its per capita GDP. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: D

All three statements are correct as per the provided summary. Statement 1 accurately reflects the opposition's concerns. Statement 2 correctly identifies K.C. Venugopal's statement. Statement 3 accurately reflects Saket Gokhale's point about the GDP disparity. Therefore, option D is the correct answer.

2. Which of the following best describes the Directive Principles of State Policy (DPSP) related to economic justice?

  • A.They are legally enforceable rights that guarantee minimum wages.
  • B.They are guidelines for the state to promote social and economic equality.
  • C.They mandate the state to nationalize all private industries.
  • D.They ensure equal representation in the Parliament for all economic classes.
Show Answer

Answer: B

The Directive Principles of State Policy (DPSP) are guidelines to the state to promote social and economic equality. They are not legally enforceable but are fundamental in the governance of the country. They aim to create a welfare state by directing the state to secure a social order for the promotion of welfare of the people.

3. With reference to the recent discussions on economic inequality, consider the following statements: 1. High youth unemployment was a concern raised during the budget debate. 2. The depreciation of the Indian Rupee was not mentioned as a concern. 3. Wealth concentration was highlighted as a key issue. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.1 and 3 only
  • C.2 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: B

Statement 1 is correct as high youth unemployment was indeed a concern raised during the budget debate. Statement 3 is also correct as wealth concentration was highlighted as a key issue. Statement 2 is incorrect because the depreciation of the Indian Rupee WAS mentioned as a concern.

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