Wednesday, 6 November 2019

IMF wants govt to be more credible, transparent on fiscal numbers

The comments come amid allegations of the budget math not adding up with some pointing to a Rs 1.7 trillion hole in the estimates
imf, International Monetary Fund
New Delhi needs to become more “transparent” on the fiscal numbers as it is a “laggard” among the G20 peers on this front, a senior official from the International Monetary Fund said here on Wednesday.
The government has been missing its budgeted fiscal targets for the past few years and there is a need for a “credible fiscal consolidation” which is more ambitious as well, the official said, adding this is more so as government has not addressed how it will make up for the massive Rs 1.45 trillion tax giveaways in the form of corporate tax cuts.
The comments come amid allegations of the budget math not adding up with some pointing to a Rs 1.7 trillion hole in the estimates, and also over 100 economists questioning the official data computation.
“Fiscal transparency should be increased. It is fairly difficult for the private sector to get the full picture on fiscal standing,” the fund’s deputy director Anne-Mary Gulde said speaking at an NSE event here. “India is somewhat lacking in a programme on G20 data initiative on fiscal transparency where comparative countries have all made greater progress,” she added.
She said there is also a need for more credible fiscal consolidation as such a move will help reduce the relatively high level of debt and free up financial resources for the private sector…

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