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Paolo Mauro, Deputy Director of the International Monetary Fund (IMF) Fiscal Affairs Department has said that India is expected to have a stable debt-to-GDP ratio going forward and recommended rationalization and simplification of Goods and Services Tax (GST). He said there will be a gradual resumption of the rise in the global public debt-to-GDP ratio in the medium-term. He said ‘our baseline projection is for the global public debt-to-GDP ratio to reach 100 per cent again by 2028. It is going to take a few years, but that seems to be the direction of travel.’

Mauro said this year's Union Budget appropriately reduces the deficit and appropriately emphasizes infrastructure. He said the fact that the deficit is being reduced helps the Central Bank. Another good feature is that there is a reduction in subsidies that is coming from the unwinding of those exceptional measures that were taken during the pandemic.

On the fuel excise tax cuts that were introduced in early 2022, he said ‘it would be appropriate to reverse those again, because at some point, you don't want to be giving these generalized subsidies to everybody. It's important to support those who are truly needy but now not everybody.’ He noted that the other thing is to broaden the base for the corporate income tax and the personal income tax. He also cautioned that fiscal costs might emerge in the future.