‘India has more room for fiscal support’

washington — A top IMF official has said that there is room for more fiscal support in India in the near term, particularly for vulnerable households and SMEs, given the severity of the country’s economic situation due to the Covid-19 pandemic.

Vitor Gaspard, director of the IMF’s Fiscal Affairs Department, told PTI that a complete and successful implementation of the existing support measures — in particular, food provision to households — is of great importance.

“Given the severity of the economic situation, in the nearterm there is room for more fiscal support, particularly for vulnerable households and SMEs,” he said. Over the medium term, India will continue to have a very limited fiscal space, and a credible and well-communicated consolidation plan will be urgently needed once the pandemic subsides, he said. —