New Delhi, Jan 12 : Senior Congress leader Jairam Ramesh on Monday raised concerns over the Union government’s economic strategy ahead of the Union Budget 2026–27, warning that the Budget must go beyond “statistical illusions” and address the deep structural issues confronting the Indian economy.
Commenting on the recently announced Parliament session schedule, Ramesh noted that the Budget, slated in less than three weeks, is likely to align with the 16th Finance Commission’s report, submitted on November 17, 2025. Covering 2026–27 to 2031–32, the report focuses on tax revenue sharing between the Centre and the States.
Fiscal Federalism Concerns
Ramesh highlighted growing concerns among States regarding fiscal federalism, particularly criticising the new 60:40 cost-sharing formula, which he said undermines 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.
Pressing Economic Challenges
He identified three key challenges requiring urgent attention in the Budget:
Sluggish private corporate investment despite tax cuts and strong profits.
Sharp decline in household savings, limiting investment capacity.
Widening inequalities in wealth, income, and consumption.
Ramesh cautioned that headline GDP growth figures mask these underlying problems and stressed that meaningful job creation depends on tackling 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 concrete measures or remain within a comfort zone of selective data and optimistic projections.