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Congress MP Jairam Ramesh on Saturday raised concerns over the upcoming Union Budget, questioning whether key Budget figures expressed as a percentage of GDP would require revision after a new GDP series is released later in February.
He flagged possible impacts of changes in inflation measurement on the Union Budget, citing the expected rollout of a new Consumer Price Index series and calling it an issue of policy coordination. In a post on X, the Congress MP wrote, "The Budget for 2026/27 will be presented tomorrow. State Govts will be anxiously awaiting what awaits them since the Finance Minister will be announcing the implementation of the recommendations of the 16th Finance Commission. The Finance Commission is a body set up under Article 280 of the Constitution every five years (or earlier) to recommend the share of the states in the tax revenues collected by the Centre, the distribution of this share among the states, and special grants for a five-year period. The 16th Finance Commission deals with the period 2026/27-2030/31." https://x.com/Jairam_Ramesh/status/2017443918523347194?s=20 "But there are two other concerns. First, many of the Budget's numbers will be expressed as a % of GDP. However, just twenty-six days later on Feb 27, 2026 the new and updated GDP series with 2022/23 as the base is scheduled to be released. Would the Budget numbers then undergo revisions very soon after they are unveiled on Feb 1, 2026?" the post read. "Second, the new Consumer Price Index (CPI) series with 2024 as base is expected to be released on Feb 12, 2026. It is being anticipated that the new series will see a sharp reduction in the share of food prices. If this were to be the case, there will be an impact on the Budget numbers. The Wholesale Price Index too is undergoing revision and presumably that will be made public in the next few months. Either way, it reflects poorly on coordination in policy making," the post further read. Finance Minister Nirmala Sitharaman is set to present a record ninth consecutive Union Budget on February 1 (Sunday). Earlier, taking an optimistic view of the economy, the Economic Survey estimated India's potential growth at around 7 per cent. It also projected that India's GDP growth in FY27 is likely to remain in the range of 6.8 per cent to 7.2 per cent, reflecting the economy's medium-term strength supported by reforms and macroeconomic stability. The Survey noted that while global economic conditions remain uncertain and fragile, India's overall outlook continues to be positive. It highlighted that India's growth is holding up better than expected compared to many other economies, although risks remain elevated due to global uncertainties. (ANI)
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