Published on 20/04/2017 11:16:01 AM | Source: Dion Global Solutions Ltd

India returned to fiscal consolidation in fiscal year2016-17: IMF

Posted in Economy News | #India #Economy #Fiscal Deficit #IMF


The IMF has said that India returned to fiscal consolidation in the fiscal year 2016-17 largely due to the near-elimination of fuel subsidies and enhanced targeting of social benefits.

Commenting on the issue, an IMF Official told the media, "India returned to fiscal consolidation in fiscal year 2016/17, supported by the near-elimination of fuel subsidies and enhanced targeting of social benefits, notwithstanding the deceleration in growth related to the country's recent currency exchange initiative."

“In India, the headline deficit is projected to decline modestly in fiscal year 2017/18, with continued delay in reaching the medium-term deficit target,” he added.

"The expected rollout of the nationwide Goods and Services Tax (GST) this year will enhance the efficiency of the internal movement of goods and services and effectively create a common national market," the IMF said.