India should slowly decrease fiscal deficit:
IMF
11/06/2014 16:59
To strengthen economic growth, India should continue to gradually bring down the fiscal deficit and usher in fuel subsidy reforms, reported PTI. Inflation, which has been at high levels, is also a key challenge for the country, Thomas J Richardson, the IMF's Senior Resident Representative in India and Nepal said. "It is important to continue the gradual process of bringing the fiscal deficit from relatively high levels to lower levels.” "It should not be done overnight and should be done gradually...It will help reduce vulnerability to external shocks and make India more durable for international investors as well as for domestic investors," Richardson said. The country's fiscal deficit stood at 4.5 per cent of GDP in the previous financial year. "Some (fuel) subsidy reform can be done in a way that it does not aggressively affect growth and also broadening the tax base is a way to bring down the fiscal deficit without adversely affecting business climate," Richardson noted while speaking at an event organised by industry body Assocham.
11/06/2014 16:59
To strengthen economic growth, India should continue to gradually bring down the fiscal deficit and usher in fuel subsidy reforms, reported PTI. Inflation, which has been at high levels, is also a key challenge for the country, Thomas J Richardson, the IMF's Senior Resident Representative in India and Nepal said. "It is important to continue the gradual process of bringing the fiscal deficit from relatively high levels to lower levels.” "It should not be done overnight and should be done gradually...It will help reduce vulnerability to external shocks and make India more durable for international investors as well as for domestic investors," Richardson said. The country's fiscal deficit stood at 4.5 per cent of GDP in the previous financial year. "Some (fuel) subsidy reform can be done in a way that it does not aggressively affect growth and also broadening the tax base is a way to bring down the fiscal deficit without adversely affecting business climate," Richardson noted while speaking at an event organised by industry body Assocham.
