Union Budget 2026: Allocation for Labour Ministry intact; Budget ignored unemployment, say trade unions

The allocation for the Union Labour Ministry remained unchanged at around ₹32,666 crore like the last Budget. Trade unions alleged that the government neglected the employment sector and there are no provisions to increase job opportunities and ensure social security of workers.

Union Finance Minister Nirmala Sitharaman counted the notification of labour reforms as a comprehensive reform measure, but the unions said there has been no allocation to vulnerable sections of workers such as the gig and platform workers.

The total allocation for the Union Labour Ministry is ₹32,666.31 crore in the Union Budget 2026. In the last Budget, it was ₹32,646.19 crore. This includes an allocation of ₹20,082.70 crore to the Pradhan Mantri Viksit Bharat Rozgar Yojana, a scheme being implemented through the social security department of the Labour Ministry.

Trade unions said the Budget reduced capital investment to corporate investment. “The Budget does not address unemployment. It does not address concerns of healthcare and education of workers and their families. There is no proposal to resource collection and mobilisation and workers feel alienated and neglected. No government can depend on a corporate house for income generation and this Budget is pro-corporate,” said Indian National Trade Union Congress leader R. Chandrashekharan.

Sangh Parivar’s trade union Bharatiya Mazdoor Sangh (BMS) said the Budget failed to address the most urgent livelihood and social security concerns of the working class. “Despite repeated representations and pre-Budget consultations, BMS expresses grave dissatisfaction and strong resentment over the continued neglect of core labour and social security demands,” they said, adding that scheme workers such as Anganwadi, ASHA and Mid-Day Meal workers are not yet recognised as workers and the Budget provided no increase in the eligibility criteria as well as minimum pension under employees pension scheme.

“The non-increase in the wage ceiling for Employees Provident Fund and Employees State Insurance is a matter of serious concern. This will result in a large number of workers being pushed out of the coverage of these vital social security schemes, thereby defeating the very objective of universal social protection,” the BMS said.

All India Trade Union Congress leader Amarjeet Kaur said the Budget was full of rhetoric with no substance for the common masses, only future promises. “Once again, the Budget was a continuity of giving concessions to corporates, and businesses in the name of ‘ease of doing business’,” she said.

The Centre of Indian Trade Unions (CITU) said in a statement that the Budget serves as a numerical façade concealing an economy in deep distress. “In its pursuit of a 4.3% fiscal deficit target and a reduction of the debt-to-GDP ratio to 55.6%, the government has placed macro-fiscal optics above the pressing realities of hunger and unemployment. This is a squeeze Budget that withdraws liquidity from the hands of the poor; despite a total expenditure of ₹53.5 lakh crore, the real picture reveals a systematic erosion of social support,” the CITU said.