NEW DELHI — Ahead of the Budget Session of Parliament, scheduled to begin on January 28, Jamaat-e-Islami Hind (JIH) has urged the Union government to place employment generation, equitable wealth distribution, and demand-led growth at the centre of the Union Budget for 2026–27, expected to be presented on February 1.
As part of its annual engagement with the budget-making process, the organisation has submitted a detailed memorandum to the Ministry of Finance, offering evidence-based and outcome-oriented recommendations aimed at correcting structural imbalances in the Indian economy.
The memorandum notes that despite sustained GDP growth, expanding financial markets, and rising corporate profitability, these gains have not translated into proportionate job creation or equitable wealth distribution. Pointing to weak employment elasticity of growth, rising youth unemployment, and increasing concentration of income and wealth, Jamaat argues that an urgent fiscal course correction is required. It also highlights how rising household expenditure on essentials such as food, healthcare, housing, and education has constrained consumption and weakened domestic demand.
Against this backdrop, JIH has called for employment outcomes to be explicitly embedded in fiscal policymaking. It has proposed institutional mechanisms to assess the labour impact of major public expenditures and incentive schemes. The memorandum recommends targeted urban employment programmes focused on climate-resilient infrastructure, urban services, and care work, along with a district-level, place-based strategy for non-farm rural employment aligned with local economic strengths.
The organisation has also sought a redesign of public credit support for micro, small and medium enterprises (MSMEs) to improve employment outcomes. This includes linking credit incentives to verified job creation, particularly for women and first-time workers. It further recommends reorienting industrial incentive schemes toward labour-intensive sectors by rewarding job density rather than capital intensity.
In the agrarian sector, JIH has urged a shift from input-centric support to income-stabilisation measures to address rural distress caused by income volatility. Its proposals include price-deficiency payments, incentives for crop diversification, expanded off-season rural employment, and gradual reforms in institutional credit towards income-smoothing instruments. The memorandum also underscores the need to reduce household financial vulnerability by lowering out-of-pocket healthcare expenditure.
Addressing educated unemployment, the organisation has proposed structured education-to-employment transition mechanisms such as paid apprenticeships and skill-linked stipends, with priority for districts facing high graduate unemployment. It has also highlighted the need for targeted socio-economic interventions for Muslims, citing persistent gaps in education, employment, and access to credit. Suggested measures include education support, enterprise financing, skill and employment clusters, and improved participation of Muslim-owned MSMEs in public procurement.
On the revenue side, the memorandum recommends a medium-term rebalancing of India’s tax structure to reduce excessive reliance on indirect taxes and strengthen progressive direct taxation. It also proposes selective levies on luxury consumption, speculative gains, and digital value creation, along with steps to enhance state fiscal capacity through predictable and outcome-linked fiscal transfers.
Reiterating that submitting constructive proposals for the Union Budget has been a consistent annual exercise, Jamaat-e-Islami Hind said the initiative reflects its commitment to inclusive and socially responsive economic policymaking. The organisation also appealed to other Muslim organisations and civil society groups to submit their recommendations to the Ministry of Finance so that a wider range of socio-economic concerns are reflected in the national budget.
The memorandum concludes that India’s core economic challenge lies not merely in wealth creation, but in ensuring that growth translates into employment, income security, and equitable social outcomes. The recommendations have been formally submitted to the Ministry of Finance for consideration in the formulation of the Union Budget 2026–27.
