4 months ago
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Ahead of the Union Budget for 2026-27 and the forthcoming Parliament session, the Congress connected Monday (January 12, 2026) flagged concerns implicit fiscal federalism, slowing investment, and rising inequality, informing that the system faces structural challenges which cannot beryllium addressed done what it called “statistical illusions”.
Congress wide caput Jairam Ramesh, successful a station connected X, besides said the forthcoming Budget would inevitably bespeak the recommendations of the 16th Finance Commission, which submitted its study connected November 17, 2025.
Sharing of taxation revenues
The report, covering the play from 2026-27 to 2031-32, deals with the sharing of taxation revenues betwixt the Centre and the States and their consequent organisation among the States.
Mr. Ramesh said States were already “deeply concerned” astir the Centre’s attack to fiscal devolution, peculiarly successful the discourse of the 60:40 cost-sharing look nether laws that, helium alleged, had “bulldozed away” the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
The Congress connection main said that States would beryllium watching the Budget intimately for signals connected however the Centre intended to code these concerns.
Three areas of concern
Highlighting broader economical challenges, Mr. Ramesh identified 3 areas of peculiar concern. Private firm investment, helium said, remained sluggish contempt firm taxation cuts and steadfast nett margins.
He besides pointed to a crisp diminution successful household savings, which, helium said, was limiting the economy’s concern capacity, adjacent arsenic wealthiness and depletion inequalities continued to widen.
“It remains to beryllium seen whether the forthcoming Budget steps retired of its comfortableness zone,” Mr. Ramesh said, adding that acknowledging these realities and taking corrective measures was indispensable for sustaining higher maturation rates.
For a durable GDP growth
The Congress person argued that durable GDP growth, particularly 1 susceptible of generating large-scale employment, would not beryllium imaginable unless these underlying issues were addressed decisively successful the Budget.
The Budget league volition statesman connected January 28 and extremity connected April 02. After the budget is presented connected February 1, Parliament volition spell into recess connected February 13 and volition reassemble connected March 9.
