Party general secretary Jairam Ramesh said slowdown in revenue collections cannot be a justification for the government to further “cut down” on social welfare programs like MGNREGA.
Photo: Congress leader Jairam Ramesh
The Congress, on Friday, demanded a provision of income support to the country’s poor and tax relief for the middle classes in the forthcoming Union Budget.
The main Opposition party made the demand while cornering the BJP-led government at the Centre over the Goods and Services Tax (GST) revenue collection, which the party claimed slumped to 3.3 per cent.
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Congress general secretary in-charge of Communications Jairam Ramesh said, “The latest data from December 2024 shows that GST collection receipts increased at the second-slowest pace in three and a half years this past month. Net GST collections, after adjusting for refunds, slumped to 3.3 per cent growth – the lowest in FY25. This is concerning news, on several fronts.”
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“First, in the first three quarters of this ongoing financial year, the government has recorded an increase in GST collections of 8.6 per cent. The Budget estimates had factored in a 11 per cent growth,” he said.
According to the Congress leader, this slowdown in revenue collections cannot be a justification for the government to further “cut down” on social welfare programs like MGNREGA, at a time when rural wages have been stagnant and consumption slackening.
He said the government expenditure must instead be used as a stimulus for the economy.
The Congress parliamentarian said the litany of demoralising news on the economic front – from the deceleration in growth to the poor GST revenue collections – demands that the government apparatus shift its focus from administering tax on popcorn to engaging with the complexities of the economy.
“The Union Budget, due to be presented next month, must provide income support to India’s poor and tax relief for the middle classes. A GST 2.0– a truly Good and Simple Tax like the Indian National Congress had envisaged in its Nyay Patra for the 2024 Lok Sabha Elections– must be instituted,” he said.
The Congress leader asserted that the tax and investigative agency “terrorism” that is deterring private investment and leading to the flight of entrepreneurs abroad must end.
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