Compelling need for tax reforms in GST, says Congress' Jairam Ramesh

NEW DELHI: Congress on Sunday attacked government, alleging that "sharpening inequality" is now firmly embedded in the nature of the country's economic growth. It also said there is a "compelling need for tax reforms in GST, ending brazen corporate favouritism and providing income support for families and incentives for household savings".

World Bank has released its poverty and equity brief for India, and the report raises several concerns even as the Modi govt spins it to its benefit, Congress general secretary Jairam Ramesh said. World Bank has said, "Over the past decade, India has significantly reduced poverty. Extreme poverty defined as living on less than $2.15 per day fell from 16.2% in 2011-12 to 2.3% in 2022-23, lifting 171 million people above this line."

Ramesh said as per calculations , poverty has continued its downward trend in recent years to reach extremely low levels. "This reflects the success of India's growth story - which began with liberalisation in June 1991 and which has since taken a momentum of its own - and that of several social welfare interventions developed by Dr Manmohan Singh's govt during 2004-14," he said.

The most important intervention was MGNREGA , which effectively set a floor on the annual income for crores of families, acting as a safety net to keep them out of poverty, and National Food Security Act that provides the foundation for Pradhan Mantri Garib Kalyan Anna Yojana, he said.

He said, "Lack of clarity and transparency over prevalence of poverty in India is a result of this govt's confused and opaque policymaking". "Since the Rangarajan Committee Report submitted in 2014, govt has not set any updated poverty line," Ramesh said.