Ahead of Budget, Congress Criticizes Centre for Lack of Coordination in Policy-Making

The Congress party has once again targeted the Modi government, alleging a lack of coordination in policy-making. A Congress MP questioned whether the figures presented in the upcoming budget would need revision immediately after being tabled, given that new GDP and Consumer Price Index (CPI) series are scheduled to be released shortly after the budget.

Budget to Be Presented on Sunday:
Congress General Secretary (Communications) Jairam Ramesh said that the Union Budget for the financial year 2026-27 will be presented on Sunday. He wrote on social media platform X (formerly Twitter): “State governments are likely waiting anxiously to see what the budget holds for them, as the Finance Minister will announce the implementation of recommendations of the 16th Finance Commission.”

Role of the Finance Commission:
Ramesh explained that the Finance Commission is a constitutional body established under Article 280 every five years (or earlier) to recommend the distribution of tax revenues collected by the Centre among states and propose special grants for a five-year period.

Two Key Concerns Ahead of the Budget:
He highlighted two major concerns:

1. Several budget figures will be presented as a percentage of GDP. However, on 27 February 2026—just 26 days after the budget presentation—a new GDP series will be released using 2022-23 as the base year.
2. A new CPI series, based on 2024 as the base year, is likely to be released on 12 February 2026.

Ramesh pointed out that the new CPI series may show a sharp decline in the share of food prices, which could impact the budget calculations. The Wholesale Price Index (WPI) is also being revised and is expected to be released in the coming months.

Congress Highlights Policy Coordination Gap:
According to Ramesh, these developments reflect a lack of coordination in policy-making. Finance Minister Nirmala Sitharaman will present her ninth Union Budget—including two interim budgets—on Sunday, 1 February.