IMF calls for 'more ambitious' fiscal consolidation by India, cites risks

But govt asserts public debt is sustainable

India needs a more ambitious fiscal consolidation roadmap to ensure medium-term debt sustainability amid growing risks to its growth outlook and shrinking fiscal space, the International Monetary Fund (IMF) said on Friday. The government, however, differed from the Fund, stressing public debt remained sustainable.

In its annual Article IV consultation report, the IMF said India’s debt-to-GDP ratio, which peaked at 89 per cent in FY21, is projected to remain elevated over the medium term. It expects the ratio to rise to 83.9 per cent of GDP in FY24, from 83.4 per cent in FY23.

The Washington-based global lender said India’s slow pace