Indian Clarity

Light. Truth. Clarity.

Loading ad...
India

Jairam Ramesh flags fiscal federalism concerns ahead of union Budget

New Delhi, Jan 12 (UNI) Senior Congress leader and MP Jairam Ramesh on Monday raised sharp questions over the economic direction of the central government ahead of the presentation of the union Budget 2026–27, warning that it must move beyond what he called “statistical illusions” and squarely address deep structural challenges facing the economy. Reacting to the announcement of the schedule for the next session of Parliament, Ramesh noted that the Budget will be presented in less than three weeks and will be shaped by the recommendations of the 16th Finance Commission, which submitted its report on November 17, 2025. The recommendations cover the five-year period from 2026–27 to 2031–32 and deal with the sharing of tax revenues between the Centre and the States, as well as their distribution among States.

Central India's Premier English Daily

Central India's Premier English Daily

Credit: Centralchronicle

Key Highlights

  • “The 2026–27 Budget will no doubt reflect the recommendations of the 16th Finance Commission,” Ramesh said in a statement, adding that States are already anxious about the direction of fiscal federalism.
  • He pointed to the controversial 60:40 cost-sharing formula under laws that, he alleged, have weakened the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
  • “The 2026/27 Budget will no doubt reflect the recommendations of the 16th Finance Commission,” Ramesh said in a statement, adding that States are already anxious about the direction of fiscal federalism.
  • He pointed to the controversial 60:40 cost-sharing formula under laws that, he alleged, have effectively weakened the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
  • “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,” he said.
Loading ad...

Sources

  1. Jairam Ramesh flags fiscal federalism concerns ahead of union Budget

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

Related Stories

Loading ad...