Covid-19: India must ease fiscal stance amid health emergency, says IMF

Once the current economic situation improves, a more ambitious, credible medium-term fiscal consolidation path is needed to bring debt and interest expenditure down, the report said

The International Monetary Fund (IMF) on Wednesday urged India to keep its fiscal deficit concerns aside and spend to tackle the Covid-19 impact. This will serve to arrest the economic slowdown, even though the fiscal space of the country remains limited, according to the IMF.
 

“In India, the fiscal stance should be eased as needed, to accommodate necessary increases in public health expenditure in response to the pandemic, and to shield against a more severe economic downturn using targeted and temporary measures,” said IMF’s Fiscal Monitor report.
 

Once the current economic situation improves, a more ambitious and credible medium-term fiscal