“Silent on GST 2.0, Tax Terrorism”: Congress' Jairam Ramesh on Economic Survey
Congress general secretary in charge of communication and Rajya Sabha member Jairam Ramesh has criticised the Economic Survey 2024-25, stating that it remains silent on critical issues such as tax reforms and regulatory transparency. He accused the government of failing to address key economic concerns while selectively highlighting positive trends.
“The Economic Survey of the Ministry of Finance is often a wish list of desired policies and a warning about undesirable ones. The latest Economic Survey is no different, and contains much for the government to ponder,” Ramesh said.
One of the key points he raised was the survey’s acknowledgment of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) as a vital support system for the rural poor. According to Ramesh, the survey recognised the programme’s role in sustainable livelihood diversification, soil quality improvement, and water management. However, he questioned the government’s decision to curtail the scheme’s funding. “The Prime Minister must explain why he is throttling MGNREGA by reducing allocations, excluding 27% of workers from getting paid by foisting an Aadhaar-based Payment System on them, and keeping wages low,” he said.
Ramesh also pointed out concerns regarding India’s financial markets. The Economic Survey highlighted that 11.5 crore investors now hold Demat accounts, attributing strong market returns to increased investor participation. However, he alleged that the government was undermining the Securities and Exchange Board of India (SEBI). “Why then is the government overseeing the corruption and weakening of a valuable national asset like SEBI, whose integrity is central to the welfare of these investors?” he asked. He further cited the survey’s observation that regulators should uphold the same high standards they expect from market entities.
On the issue of trade, Ramesh underscored the continuous rise in imports from China despite the government’s push for domestic manufacturing through schemes like the Production-Linked Incentive (PLI). He noted that the import bill with China reached a record $102 billion in 2023-24 and is set to increase further in 2024-25. “This is unlikely to change in the near future, as the Economic Survey itself admits that the import intensity of E-Vehicle production remains extremely high, particularly from countries with whom India has persistent and large trade deficits,” he stated.
He argued that economic protectionism should not be used to shield monopolies from competition but rather to enhance the competitiveness of Micro, Small, and Medium Enterprises (MSMEs). “In the most successful export stories, industrial policy goals were achieved not by protection alone but by ensuring that the protected industries performed in response to the protection afforded,” he said, adding that monopolistic tendencies should not dominate entire sectors for political gain.
Lastly, Ramesh criticised the survey’s failure to address major tax concerns. “The Economic Survey calls for Ease of Doing Business 2.0. But it is silent on a whole new GST 2.0 and an end to the tax terrorism unleashed in the past decade,” he remarked. He also expressed disappointment over the survey’s lack of focus on public health and environmental challenges. “It has little to say about an Ease of Living 1.0 to ensure that the public health crisis caused by growing pollution and chemical contamination begins to be dealt with seriously,” he said.
The Economic Survey, presented by Finance Minister Nirmala Sitharaman, projected India’s GDP growth between 6.3% and 6.8% for FY26.
