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"Sops Over Solutions": Left Parties Dismiss Puducherry’s FY26 Budget as a Populist Mirage Amidst Deepening Debt

 




PUDUCHERRY — While Chief Minister N. Rangasamy has hailed his Rs 13,600 crore "tax-free" budget for the fiscal year 2025-26 as a pro-people roadmap, Left parties and trade unions have dismissed the financial statement as a "populist mirage" designed to mask the Union Territory’s deepening debt crisis and unemployment rates.

The Communist Party of India (CPI) and the CPI(M) have issued strong critiques of the budget presented on the floor of the Assembly, terming it a "cosmetic exercise" that relies heavily on borrowing to fund unsustainable cash handouts while ignoring structural economic reforms.

"Sops Instead of Jobs"


Left leaders have taken particular aim at the headline-grabbing welfare schemes, specifically the hike in assistance for women heads of BPL families (from Rs 1,000 to Rs 2,500) and the Rs 1,000 monthly stipend for government school students entering college.

"The government is trying to pacify a population reeling under inflation with cash doles instead of guaranteeing employment," a senior CPI(M) spokesperson stated. "While we welcome financial relief for the poor, these measures are an admission of economic failure. If the government had filled the thousands of vacant posts in the public sector and ensured fair wages, families would not need to survive on handouts. This is not empowerment; it is dependency."

Critics argue that the allocation of Rs 2,110 crore for welfare schemes is a short-term fix that diverts attention from the administration's failure to revive the industrial sector or reopen closed textile mills, which were once the backbone of Puducherry's working class.

The Debt Trap and "Tax-Free" Myth


The Left has also challenged the "tax-free" label attached to the budget. Economists aligned with the Left point out that a significant portion of the budget—specifically the provisions for loan repayments and power purchases—indicates a UT drowning in debt.

"To say this is a tax-free budget is misleading when the administration is aggressively borrowing just to pay salaries and pensions," read a statement from the joint council of trade unions. "Future generations of Puducherry are being mortgaged to fund today's political compulsions. There is no roadmap in this budget to increase internal revenue generation effectively."

Silence on Statehood


Furthermore, the Left parties have criticized the Chief Minister for failing to secure adequate grants or Special Category Status from the Central Government, despite his alliance with the ruling NDA at the Centre.

"The Chief Minister has once again surrendered the rights of Puducherry," a CPI leader alleged. "The budget speech glosses over the fact that the Union Government has not increased its share of funding proportionately. Instead of fighting for Statehood and a waiver of legacy loans, the local government is content with meager allocations, forcing them to rely on open market borrowings."

Neglect of Public Education and Health
While the budget allocates funds for student stipends, Left student unions argue that the infrastructure in government schools and colleges remains in shambles. "Giving a student Rs 1,000 a month does not fix the lack of teachers, poor laboratory facilities, or the privatization of higher education," said a representative of the Student Federation of India (SFI).


For the Left bloc, the 2025-26 budget represents a missed opportunity. By prioritizing liquid cash transfers over long-term asset creation, industrial revival, and public sector strengthening, critics argue that the Rangasamy administration offers only a temporary salve to a wound that requires major surgery.

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