IMF cautions India against fiscal stimulus, says govt should go for reforms

The Budget projected the Centre's fiscal deficit to come down to 3.3 per cent of the country's gross domestic product (GDP) in 2019-20 against 3.4 per cent a year ago

The International Monetary Fund (IMF) has cautioned India against giving a fiscal stimulus because the government has a wiggle-room to do so. It said the government was anyway likely to miss the fiscal deficit target given in the Budget for 2019-20 owing to ambitious revenue  projections and the recent cuts in corporation tax rates. 

It has estimated the Centre’s fiscal deficit to widen to 3.7 per cent of GDP in FY20 and 3.8 per cent next fiscal year, against the projection of 3.3 per cent and 3 per cent given in the Budget papers.  It wanted the government to undertake