New Delhi. Congress General Secretary Jairam Ramesh has drawn attention to the serious challenges facing the country’s economy after the program of the upcoming session of Parliament was announced. He said the budget for FY 2026/27 will be presented in twenty days and it will undoubtedly reflect the recommendations of the 16th Finance Commission, but the real challenge is whether the government accepts the current economic realities.
Ramesh wrote in the X Post that the 16th Finance Commission had submitted its report on 17 November 2025, which covers the period 2026/27 to 2031/32. It includes recommendations related to the sharing of tax revenue between the Center and the states and distribution among the states. State governments, already worried about the 60:40 cost sharing formula implemented in the new law that scrapped MNREGA, are now even more apprehensive.
He said that the Indian economy is facing many challenges. Among these, three are most prominent. Despite tax cuts and healthy profits, rates of private corporate investment remain sluggish, household savings rates have fallen sharply, limiting investment potential, and inequalities in wealth, income and consumption continue to widen.
Congress leader Ramesh asked whether the upcoming budget will come out of statistical illusions, accept these realities and take concrete steps to deal with them. High GDP growth rates are essential for large-scale expansion of job creation, but these cannot be sustainable unless these challenges are addressed. The upcoming budget will be a test for the government on whether it takes concrete steps to address the real economic challenges.
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