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Congress Slams Government Over Inflation and Tax Burden, Demands Economic Accountability

By Gurminder Mangat , 20 May 2025
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The Indian National Congress has intensified its critique of the Narendra Modi-led government, alleging that citizens are suffering under the combined weight of persistent inflation and an increasing tax burden. In a pointed public statement, senior Congress leader Jairam Ramesh accused the administration of exacerbating economic hardship for the common citizen through rising living costs and indirect taxation. Drawing attention to surging household expenses in education, healthcare, and banking services, the opposition party is demanding clarity and accountability from the government on how it plans to ease financial stress for the average Indian.

Congress Alleges Dual Economic Pressure on Citizens

On Monday, the Indian National Congress sharpened its attack on the Union government, accusing it of imposing a "double assault" on the population—first through sustained inflation and second via what it described as an expanding and regressive tax regime. Jairam Ramesh, the party’s general secretary in charge of communications, argued that ordinary Indians are bearing the brunt of economic mismanagement, even as the government promotes its so-called “double-engine” model of governance.

In a social media post shared in Hindi, Ramesh criticized the Centre for what he described as a decade-long trend of rising prices and increasing indirect taxes. His remarks followed the circulation of a media report highlighting a steady climb in the effective tax burden on households.

Rising Cost of Living: Education, Health, and Everyday Essentials

Ramesh pointed to specific areas where citizens have seen substantial financial strain. Educational expenses—school fees, books, uniforms—have reportedly increased by 12 to 15 percent annually. Healthcare costs, another major expenditure category for middle-class families, have seen similar escalation, according to the Congress leader.

He also highlighted the expansion of service charges and indirect levies in the banking and transport sectors, including fees on basic services like net banking, car ownership, and even FASTag usage. Furthermore, he criticized the Goods and Services Tax (GST) structure for including essential food items like milk, curd, and flour, claiming that such policies have disproportionately impacted lower-income households.

Stagnant Incomes and Diminishing Purchasing Power

While expenses are on the rise, Congress claims that household incomes have remained largely stagnant. This widening gap between earnings and expenditures has, according to the party, led to a severe decline in purchasing power across the working and middle classes. The Congress has accused the government of not only failing to boost private investment and employment but also burdening consumers through indirect means to offset fiscal pressures.

“The tax loot and rampant inflation are breaking the backs of the people,” Ramesh said, demanding that the Prime Minister and his cabinet explain how citizens are expected to cope under such conditions.

Broader Political Strategy and Economic Narrative

The Congress’ rhetoric around economic distress is part of a broader strategy to reframe the national conversation around the lived experience of inflation and fiscal policy. As the country moves closer to another electoral cycle, the opposition is aiming to undercut the government's narrative of economic recovery and growth by focusing on everyday challenges faced by voters.

While official government responses to these latest accusations remain pending, the criticism taps into public discontent around cost-of-living increases, which remain a potent political issue despite broader macroeconomic indicators showing resilience in growth and foreign investment.

Conclusion: A Call for Transparency and Relief

The Congress party's renewed focus on inflation and taxation underscores its attempt to channel public frustration into political momentum. With price sensitivity still high among consumers and wage growth uneven across sectors, the opposition's messaging may find increasing resonance if the government does not articulate a clear plan for easing economic stress. For now, the discourse on India's economic trajectory remains contested, with the public caught in the crosshairs of policy narratives and ground realities.

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