Rajya Sabha MP Raghav Chadha on Sunday delivered a comprehensive and data-backed assessment of the Union Budget in Parliament, moving beyond routine political positioning to offer what he described as “The Good, The Bad and The Way Forward”. Speaking in New Delhi on 9 February 2026, Chadha combined praise for growth-oriented measures with pointed criticism of structural weaknesses, while laying out reform-focused proposals aimed at protecting investors, strengthening public services and easing pressure on India’s middle class.
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The Good: Measures That Support Long-Term Growth
Today, I delivered a speech on the Union Budget 2026-27 titled the good, the bad, and the way forward.
Speeches on Union Budget are either applause from the Treasury benches or outrage from the Opposition. Today, I tried to take an objective view and offer constructive criticism…
— Raghav Chadha (@raghav_chadha) February 9, 2026
STT Hike On Derivatives, Call For Zero LTCG On Equities
Raghav Chadha welcomed the increase in Securities Transaction Tax (STT) on derivative trading, arguing that it could help curb excessive speculation. He noted that nearly 90 per cent of retail investors lose money in futures and options trading, turning it into a gambling-like activity rather than genuine investment.
At the same time, he reminded the House that STT was introduced when long-term capital gains (LTCG) tax on equities was zero. With both STT and LTCG now in place, investors face double disincentives. Citing countries such as Switzerland, Singapore, the UAE, Hong Kong, New Zealand, Qatar and Malaysia, Chadha urged the government to make LTCG on equities nil for individual investors to boost household wealth and channel savings into productive assets.
Capital Expenditure Push As An Infrastructure Multiplier
Chadha praised the sharp rise in capital expenditure from about ₹3 lakh crore in FY 2018–19 to nearly ₹12 lakh crore, around 4.4 per cent of GDP. He described the shift as a positive move towards asset creation with strong multiplier effects on growth, jobs and productivity. However, he called for a clear five-year, sector-wise capex roadmap to help the private sector align investments and amplify impact.
Restraint In Election-Linked Announcements
Acknowledging a break from past trends, Chadha noted relative restraint in election-driven budget announcements. He said budget speeches often signal poll priorities through targeted schemes and welcomed the limited use of such measures this year.
Boost To NRI Investment Limits
The MP also welcomed enhanced NRI investment limits in equity markets, saying the move could unlock capital from India’s 32 million-strong diaspora. He pointed out that the measure followed foreign portfolio investor outflows of nearly USD 23 billion last year, while urging the government to address deeper structural reasons behind continued foreign exits.
The Bad: Structural Gaps And Fiscal Concerns
Debt-To-GDP Framework Raises Red Flags
Chadha raised concerns over changes to the debt-to-GDP framework, warning that the new approach allows higher borrowing based on optimistic growth assumptions. He said the official 56.1 per cent debt-to-GDP figure excludes off-balance-sheet liabilities such as FCI bonds, oil marketing company dues and NHAI borrowings. Including these, he placed the figure at 59.7 per cent, with hidden debt of ₹17 lakh crore.
No Income Tax Relief For Salaried Class
Terming it a major disappointment, Chadha criticised the absence of income tax slab revisions. With inflation around 6.8 per cent and wages largely stagnant, he said the salaried middle class needed immediate relief. He demanded that the standard deduction be raised from ₹75,000 to ₹1.5 lakh.
Middle Class Paying More Than Corporates
Highlighting a structural shift, Chadha pointed out that personal income tax collections at around ₹11 lakh crore have overtaken corporate tax collections of roughly ₹9.8 lakh crore. Meanwhile, education, healthcare, rent, food and transport costs have continued to rise, leaving the middle class squeezed without adequate policy support.
Public Healthcare Spending ‘Abysmally Low’
Chadha flagged India’s low public healthcare allocation, currently about 0.5 per cent of GDP, far below the National Health Policy 2017 target of 2.5 per cent. Comparing India with countries such as the UK, Germany and Japan, he warned that underfunded public healthcare is pushing millions into poverty and called for a “One Nation, One Medical Treatment” approach.
The Way Forward: Reform-Oriented Solutions
Blockchain-Based Land And Property Registry
As a governance reform, Chadha proposed a blockchain-based land and property registry to reduce disputes and fraud. Citing examples from Sweden, Georgia and Dubai, he contrasted their fast, low-cost verification systems with India’s paper-heavy process that can take months and sees disputes in nearly half of all cases.
Inflation-Linked Salary Revision Act
Chadha proposed an Inflation-Linked Salary Revision Act to protect salaried workers, stating that real wages declined by 16 per cent between FY18 and FY26. He cited global models such as the US COLA system, Germany’s collective bargaining framework and Belgium’s statutory wage indexation to underline feasibility.
Capex Grants To States
Urging stronger cooperative federalism, Chadha called for ₹1.5 lakh crore in matching capex grants to states over five years. He argued that grant-based support would allow states to invest in infrastructure without balance-sheet stress and deliver a 2–3x GDP multiplier over the medium term.
Regulate Virtual Digital Assets
On crypto and digital assets, Chadha argued for regulation rather than prohibition. He highlighted that while VDAs are taxed at 30 per cent plus TDS, the lack of clear regulation has pushed ₹4.8 lakh crore in trading offshore. Proper regulation, he said, could protect investors, bring activity back onshore and add significant tax revenue.
Concluding his intervention, Raghav Chadha said the Union Budget must balance growth with fiscal responsibility, protect the middle class, encourage long-term investment and strengthen public services. He urged the government to treat economic policymaking as a long-term nation-building exercise rather than a short-term political tool.
