Economy faces many challenges, meaningful steps needed in Budget: Congress

New Delhi, Jan 12 (PTI) The Congress on Monday hoped that the forthcoming Union Budget will take meaningful steps to address the challenges of sluggish private corporate investment and disparities in income as higher GDP growth rates in actuality will simply not be sustainable.

Congress general secretary in-charge communications Jairam Ramesh said household savings rates have declined considerably, and wealth, income, and consumption inequalities continue to deepen.

Ramesh said it remains to be seen if the forthcoming Union Budget boldly comes out of the comfort zone of statistical illusions, acknowledges realities and challenges, and takes meaningful steps to deal with them.

Noting that the schedule for the forthcoming session of Parliament has been announced, he said the 2026-27 Budget will be presented 20 days from now.

"It will no doubt reflect the recommendations of the 16th Finance Commission that had submitted its report on November 17, 2025. These recommendations, covering the period 2026/27- 2031/32, relate to the sharing of tax revenues between the Centre and States and the distribution of these revenues among the States themselves," he said in a post on X.

The States, already deeply concerned by the new 60:40 cost sharing formula in the law that bulldozed away MGNREGA, will certainly be keeping their fingers even more crossed than ever, Ramesh said.

"The economy faces many challenges. Three stand out. First, rates of private corporate investment remain markedly sluggish -- tax cuts and healthy profits notwithstanding. Second, household savings rates have declined considerably, constraining investment capacity. Third, wealth, income, and consumption inequalities continue to deepen," he said.

"It remains to be seen if the forthcoming Budget boldly comes out of the comfort zone of statistical illusions, acknowledges these realities and challenges, and takes meaningful steps to deal with them," Ramesh said.

Higher GDP growth rates in actuality, so very essential for vastly expanded job creation, will simply not be sustainable unless these steps are taken now, he said.

The Budget session of Parliament will be held from January 28 to April 2 The session begins with the address of President Droupadi Murmu to the joint session of the Lok Sabha and the Rajya Sabha in the Lok Sabha chamber.

Finance Minister Nirmala Sitharaman will table the Economic Survey and present the general Budget.

Parliamentary Affairs Minister Kiren Rijiju has not shared details on the date of the presentation of the Budget. February 1, which has been fixed as the Budget Day, falls on a Sunday this year.

Parliament will be in recess from February 13 till March 9. PTI ASK/SKC DV DV