Senior Congress leader Jairam Ramesh on Monday questioned the Union government’s economic strategy ahead of the Union Budget 2026–27 presentation, warning that the Budget must go beyond “statistical illusions” and confront the deep structural issues facing the economy.
Responding to the Parliament session schedule announcement, Ramesh noted the Budget’s timing—less than three weeks away—and its likely alignment with the 16th Finance Commission’s report submitted on November 17, 2025. Covering the period from 2026–27 to 2031–32, the report addresses tax revenue sharing between the Centre and the States, as well as its distribution.
Ramesh highlighted States’ concerns over fiscal federalism, particularly criticising the new 60:40 cost-sharing formula, which he said has undermined the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). “States, already anxious about the 60:40 formula that bulldozed MGNREGA, will be even more apprehensive,” he said.
He identified three pressing economic challenges that require urgent Budget attention: sluggish private corporate investment despite tax cuts and strong profits; a sharp decline in household savings, limiting investment capacity; and widening wealth, income, and consumption inequalities.
Ramesh cautioned that headline GDP growth figures mask these problems and stressed that large-scale job creation depends on addressing them. “Sustainable higher GDP growth essential for expanded employment will not be possible without immediate action,” he said.
He questioned whether the government would confront these realities with meaningful measures or remain in a comfort zone of selective data and optimistic projections.