Team Blitz India
NEW DELHI: The International Monetary Fund (IMF) has praised Indian authorities, adding that the economy’s strong performance will continue going ahead and that it has the potential to grow ‘faster and more sustainably if a comprehensive structural reform agenda is implemented.’
Writing in the Article IV consultations, the IMF’s staff said that the tightening of fiscal stance in 2023-24 is appropriate and that an ambitious medium-term consolidation plan is required to rebuild buffers and preserve debt sustainability.
“(IMF Executive) Directors welcomed the authorities’ near-term fiscal policy, which focuses on accelerating capital spending while tightening the fiscal stance,” the IMF’s Article IV consultation report, released on December 19, said.
“The Indian Government is looking to lower its fiscal deficit to 5.9 percent of GDP in the current financial year, with the Centre confident about meeting the target. In the medium-term, the fiscal deficit is expected to be lowered to 4.5 percent of GDP by 2025-26,” the report went on to add.
