Poor Coordination in Policy Making, Says Congress

Poor Coordination in Policy Making

Poor coordination in policy making has drawn sharp criticism from the Congress ahead of the Union Budget 2026. The party questioned the government’s timing of key economic announcements and raised doubts over the durability of Budget figures.

Congress general secretary for communications Jairam Ramesh said the Budget for 2026–27 will be presented on Sunday, February 1, 2026. However, the government plans to release a new GDP series and an updated Consumer Price Index soon after. He said this sequence shows poor coordination in policy making.

In a post on X, Ramesh said State governments remain anxious about their share of central funds. He noted that the Finance Minister will announce the implementation of the 16th Finance Commission’s recommendations. These recommendations will guide Centre–State tax sharing from 2026–27 to 2030–31.

Ramesh pointed out that many Budget estimates depend on GDP-linked ratios. The government will release the new GDP series on February 27, with 2022–23 as the base year. As a result, several Budget figures may need early revision.

He also flagged concerns over changes in the CPI basket. A lower weight for food prices could affect inflation estimates. In addition, the Wholesale Price Index may also see revisions in the coming months.

Ramesh said these overlapping changes weaken economic planning. Finance Minister Nirmala Sitharaman will present her ninth Union Budget on February 1.

Share this post

submit to reddit
scroll to top