‘She forgets most important fourth F, falling private investment’: Congress says Govt’s finances are ‘not as rosy’

The Congress on Tuesday attacked the Centre’s handling of the economy, with senior leader Jairam Ramesh accusing Finance Minister Nirmala Sitharaman of ignoring what he called the “all-important fourth F”, namely falling private investment, while highlighting concerns over fuel, fertiliser and forex reserves.

Ramesh’s remarks came a day after Sitharaman stressed the need to focus on the “3Fs” amid the ongoing West Asia crisis and rising global uncertainty.

Taking a swipe at the government, Ramesh said on X, “The FM has said that the 3Fs — Fuel, Fertilisers, and Forex — are matters of great concern. But she forgets the all-important fourth F: Falling rates of private investment that have been in evidence these past few years.”

He further alleged that the government was failing to address deeper economic concerns despite political success.

“Winning elections through large-scale manipulation of electoral rolls is one thing. But recognising what really ails the economy with humility and sobriety and taking remedial actions is entirely another matter,” Ramesh said.

The Congress leader claimed that net foreign direct investment inflows had weakened and private corporate investment as a share of GDP had dropped sharply from levels seen before 2014. He also said Indian businesses were increasingly looking for stable and profitable opportunities overseas, while some corporate leaders were relocating abroad.

“Investment is as much a financial decision as it is driven by psychological factors. The lack of broad-based consumer demand growth has disincentivised companies from investing,” he said.

Speaking at the 37th foundation day event of Small Industries Development Bank of India in New Delhi on Monday, Sitharaman warned that rising geopolitical tensions were putting pressure on India’s economy through higher fuel and fertiliser costs and external sector risks.

“There is a need to focus on the 3Fs of fuel, fertilisers and forex in the current context,” the finance minister said.

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Congress questions RBI dividend payout

In another post, Ramesh also questioned the Centre’s financial position after the Reserve Bank of India approved a surplus transfer of ₹2.87 trillion to the Union government for the financial year 2025-26, one of the largest dividend payouts by the central bank.

Citing media reports, he alleged that the RBI reduced its Contingency Risk Buffer to facilitate the higher payout.

“That the Union Govt's finances are not as rosy as is being made out to be is proved by the fact that the RBI has done it a favour and given it a big bonus,” Ramesh said.

“The Centre has got a bonanza of an additional ₹920 billion over and above what it would have got had the 2024/25 Contingency Reserve Buffer not been reduced,” he added.

The RBI on Friday announced the record transfer for FY26, higher than the ₹2.69 trillion transferred in the previous financial year.