New Delhi, 12 January (H.S.): Congress General Secretary Jairam Ramesh cautioned the government on Monday about pressing economic challenges following the announcement of the upcoming parliamentary session schedule. With the Union Budget for fiscal year 2026/27 set to be presented in just 20 days, Ramesh emphasized that it will undoubtedly reflect the recommendations of the 16th Finance Commission, yet the true test lies in whether the government acknowledges prevailing economic realities.

In a post on X, Ramesh noted that the 16th Finance Commission submitted its report on November 17, 2025, covering the period from 2026/27 to 2031/32, with proposals on tax revenue sharing between the Centre and states, as well as distribution among states. State governments, already anxious over the 60:40 cost-sharing formula introduced in the new law scrapping MGNREGA, now face heightened concerns.

Ramesh highlighted three critical challenges confronting the Indian economy on Monday. Despite tax cuts and robust corporate profits, private corporate investment rates remain sluggish; household savings rates have plummeted sharply, constraining investment capacity; and inequalities in wealth, income, and consumption continue to widen relentlessly.

The Congress leader questioned whether the forthcoming budget will transcend statistical illusions to confront these realities with concrete measures. High GDP growth rates are essential for large-scale job creation, but such growth cannot be sustainable without addressing these issues. The upcoming budget will serve as a litmus test for the government's resolve to tackle genuine economic challenges head-on.

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Hindusthan Samachar / Jun Sarkar