India has room for fiscal support given severity of economic crisis: IMF

Over the medium-term, India will have a very limited fiscal space, and a credible and well-communicated consolidation plan will be urgently needed once the pandemic subsides, an IMF official said

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 Gaspar, Director of the International Monetary Fund'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 paramount importance.

Given the severity of the economic situation, in the near-term there is room for more fiscal support, particularly for vulnerable households and SMEs (Small and Medium-Sized Enterprises), he said.

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