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 countrys economic situation due to the COVID-19 pandemic.
Vitor Gaspar, Director of the International Monetary Funds 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.
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 coronavirus pandemic subsides, Gasper said.
The economic impact of the COVID-19 in India has been substantial and broad-based, he said, adding that high frequency indicators point to a sharp decline in economic activity, as reflected in the industrial production, business sentiment (in the purchasing managers index), vehicle sales and trade.
In the June World Economic Outlook (WEO), growth in fiscal year 20/21 was revised down to -4.5 per cent, he said.
The downward revision compared with the April WEO was driven primarily by the continued rise in the number of COVID-19 cases in India.
This led the International Monetary Fund to make specific two adjustments. First, the assumed length of the partial lockdown was extended somewhat. Second, and more important, we made more conservative assumptions about the speed of recovery given that the health crisis has not yet been contained, Gasper said in response to a question.
He said that the near-term growth outlook in India continues to be clouded by the global and domestic slowdown and uncertainties relating to the evolution of the coronavirus pandemic.
According to the senior IMF official, Indias general government fiscal deficit is projected to reach 12.1 per cent of the GDP in fiscal year 20/21, primarily due to weak tax revenues, as well as a denominator effect associated with the negative projected nominal GDP growth as with all other macro variables, estimates are highly uncertain.
Consistent with this, and the deterioration in economic activity, Indias public debt-to-GDP ratio is projected to reach about 84 per cent this fiscal year, Gasper added.
According to Johns Hopkins Coronavirus Resource Center, the contagion has infected over 12 million people and killed more than 554,000 across the world.
The US is the worst affected country with over 3.1 million cases and more than 1,33,000 deaths. Indias COVID-19 caseload stands at 7,93,802 with 21,604 deaths.
The COVID-19, which originated in Chinas Wuhan city in December last year, has also battered the world economy with the International Monetary Fund saying that the global economy is bound to suffer a severe recession.
Scientists are racing against time to find a vaccine or medicine for its treatment.
Like Loading...
Related
Read the original here:
- Recruitment - Wikipedia - January 27th, 2017 [January 27th, 2017]
- Resource-based economy and pay-it-forward | The Moneyless ... - January 30th, 2017 [January 30th, 2017]
- A Resource Based Economy - worldsocialism.org - January 30th, 2017 [January 30th, 2017]
- Trump's Flawed Logic Regarding US-Mexico Relations - Fair Observer - February 7th, 2017 [February 7th, 2017]
- Economic freedom achievable through knowledge based economy, innovative technical skill development - President - Asian Tribune - February 7th, 2017 [February 7th, 2017]
- Younger generation inheritors of knowledge-based economy: President - Lanka Business Online - February 7th, 2017 [February 7th, 2017]
- Morguard - 2017 Real Estate Investment Trends to Watch in Canada - Canada NewsWire (press release) - February 7th, 2017 [February 7th, 2017]
- Ask Yourself These Two Questions About America's Economic Future - Fortune - February 8th, 2017 [February 8th, 2017]
- The Informal Economy and Decent Work: A Policy Resource ... - February 8th, 2017 [February 8th, 2017]
- Thunder Bay's population experiencing low growth - Tbnewswatch.com - February 9th, 2017 [February 9th, 2017]
- Substantial investment in agriculture needed to ensure enough food for all - Daily Nation - February 9th, 2017 [February 9th, 2017]
- Can Russia project power while battered by economic woes? - Asia Times - February 9th, 2017 [February 9th, 2017]
- When will Russia finally break its 'resource curse'? - Russia Direct - February 10th, 2017 [February 10th, 2017]
- TEA & TWO SLICES | On Giant Snow Penises And Christy Clark's Shudder-Worthy Interview - Scout Magazine (blog) - February 10th, 2017 [February 10th, 2017]
- Can Russia project power while battered by economic woes ... - MENAFN.COM - February 11th, 2017 [February 11th, 2017]
- Siemens backs Qatar''s economic ambitions with innovation - MENAFN.COM - February 12th, 2017 [February 12th, 2017]
- The 'Dutch disease' reexamined: Resource booms can benefit the wider economy - USAPP American Politics and Policy (blog) - February 13th, 2017 [February 13th, 2017]
- Charles Lawton: Here's a proposal to create real equality of job opportunity - Press Herald - February 14th, 2017 [February 14th, 2017]
- India can't write-off coal-based energy so soon: World Coal Association - Economic Times - February 14th, 2017 [February 14th, 2017]
- The pathologies of redistributive resource transfers - Livemint - February 15th, 2017 [February 15th, 2017]
- Jessica Wright: Well-managed farmland benefits community, watershed - Conway Daily Sun - February 15th, 2017 [February 15th, 2017]
- Evaluate FLSA for its Ability to Keep Pace with Today's Workplace, SHRM Tells House Subcommittee - SHRM - February 16th, 2017 [February 16th, 2017]
- Officials hope fiber optic expansion helps diversify Decatur's economy - The Decatur Daily - February 16th, 2017 [February 16th, 2017]
- 10th Biennial Nehalem Bay Estuary Cleanup set - Tillamook Headlight-Herald - February 16th, 2017 [February 16th, 2017]
- Howard gives Barnett a hand on hustings - The West Australian - February 18th, 2017 [February 18th, 2017]
- EDITORIAL COMMENT: Let's celebrate President's birthday with ... - Chronicle - February 20th, 2017 [February 20th, 2017]
- Kentucky Main Street Program Communities Contributed $110M to State Economy in 2016 - WMKY - February 20th, 2017 [February 20th, 2017]
- GM, Steelcase see a web of opportunity in the circular economy - GreenBiz - February 21st, 2017 [February 21st, 2017]
- The sputtering energy economy: Can it be revved up? - Meridian Star - February 21st, 2017 [February 21st, 2017]
- The difference between Malcolm Turnbull and Justin Trudeau - The Australian Financial Review - February 21st, 2017 [February 21st, 2017]
- In the Face of a Trump Environmental Rollback, California Stands in ... - Yale Environment 360 - February 22nd, 2017 [February 22nd, 2017]
- Report: Boundary Waters nets $77 million from summer visitors - Duluth News Tribune - February 22nd, 2017 [February 22nd, 2017]
- DENIM SPIRIT: An economy based on abundance - Finger Lakes Times - February 23rd, 2017 [February 23rd, 2017]
- HR International to hold confab on African economy - Guardian - February 24th, 2017 [February 24th, 2017]
- Event promotes innovation and technology expansion - News - Castlegar News - February 24th, 2017 [February 24th, 2017]
- The Venus Project Plans to Bring Humanity to the Next Stage of Social Evolution. Here's How. - Futurism - February 24th, 2017 [February 24th, 2017]
- Best returns since 1900? Resource based countries, including ... - Financial Post - February 24th, 2017 [February 24th, 2017]
- Economic growth projected for Saskatchewan in 2017 | Regina ... - Regina Leader-Post - February 24th, 2017 [February 24th, 2017]
- Energy as a Model for US-Mexico Economic Partnership - RealClearEnergy - February 24th, 2017 [February 24th, 2017]
- Science and Technology: Minister says FG will harness natural ... - Pulse Nigeria - February 24th, 2017 [February 24th, 2017]
- Montana Jobs Not Well Positioned - Big Sky Business Journal - Big Sky Business Journal - February 25th, 2017 [February 25th, 2017]
- The future of WA's economy: Life beyond mining - WAtoday - February 27th, 2017 [February 27th, 2017]
- Verdant Zeal set to celebrate decade of providing media solutions - Guardian - February 28th, 2017 [February 28th, 2017]
- Lessons from Canada's scientific resistance - Bulletin of the Atomic Scientists - February 28th, 2017 [February 28th, 2017]
- St Ann can do better Earl Jarrett - Jamaica Gleaner - February 28th, 2017 [February 28th, 2017]
- Firm canvasses technology strategy - The Nation Newspaper - March 3rd, 2017 [March 3rd, 2017]
- Mandryk: Next Saskatchewan boom needs to be from our heritage fund - Regina Leader-Post - March 3rd, 2017 [March 3rd, 2017]
- Bank of Canada channels Al Gore - Toronto Sun - March 3rd, 2017 [March 3rd, 2017]
- Australia's economy has been growing for 25 years straight Quartz - Quartz - March 4th, 2017 [March 4th, 2017]
- The Venus Project envisions a sustainable redesign of our cities and civilization - Inhabitat - March 4th, 2017 [March 4th, 2017]
- State's high-tech hits $1 billion economic milestone - Daily Inter Lake - March 7th, 2017 [March 7th, 2017]
- The startup economy - Canadian Lawyer Magazine - March 7th, 2017 [March 7th, 2017]
- Nehalem Bay Estuary Cleanup - North Coast Citizen - March 7th, 2017 [March 7th, 2017]
- Pipelines to be a 'fundamental' issue for NDP leadership race: Julian - Hill Times (subscription) - March 8th, 2017 [March 8th, 2017]
- Prime Minister Trudeau, no fan of the middle class - Hill Times (subscription) - March 8th, 2017 [March 8th, 2017]
- Finally, Democrats Have A Pro Wrestler In Their Corner - Huffington Post - March 9th, 2017 [March 9th, 2017]
- WA election: Labor outlines campaign costings and debt reduction plan - ABC Online - March 9th, 2017 [March 9th, 2017]
- WA election: Death threats, One Nation legal action, stadium stoush campaign trail action - ABC Online - March 9th, 2017 [March 9th, 2017]
- Russia, Israeli firm agree to invest $100 mln in Russia's dairy industry - Reuters - March 10th, 2017 [March 10th, 2017]
- Maine deserves a chance to capitalize on the North Woods monument - Bangor Daily News - March 10th, 2017 [March 10th, 2017]
- MAN, RMRDC, others to promote resource-based MSMEs,funding - The Nation Newspaper - March 10th, 2017 [March 10th, 2017]
- Jobs, education focus of Gov. Brown's Prineville visit - KTVZ - KTVZ - March 10th, 2017 [March 10th, 2017]
- HIKE NETARTS BAYOCEAN SPIT - North Coast Citizen - March 11th, 2017 [March 11th, 2017]
- Jobs versus or for the environment? - Budgeeter News - March 11th, 2017 [March 11th, 2017]
- Canada Invests $325 Million in the Fish and Seafood Sector - Yahoo Finance - March 11th, 2017 [March 11th, 2017]
- We are taking steps to overhaul economy through knowledge-based ... - TheNewsGuru (satire) (press release) (blog) - March 11th, 2017 [March 11th, 2017]
- Canada Invests $325 Million in the Fish and Seafood Sector - Marketwired (press release) - March 12th, 2017 [March 12th, 2017]
- Saskatchewan gender, immigrant wage gaps among widest in Canada - Saskatoon StarPhoenix - April 8th, 2017 [April 8th, 2017]
- Week in Film: Endless LOLs, an Acid Western, and Great Advice ... - Bedford + Bowery - April 8th, 2017 [April 8th, 2017]
- Famous fish the focus of 'steelhead ecology' hike - Tillamook Headlight-Herald - April 8th, 2017 [April 8th, 2017]
- 'Explore Nature' sets Cape Lookout hike - Tillamook Headlight-Herald - April 8th, 2017 [April 8th, 2017]
- Califonria Lawmakers approve billion dollar gas tax | KBAK - Bakersfield Now - April 8th, 2017 [April 8th, 2017]
- Globe editorial: On pipelines, Ottawa must have the final say - The ... - The Globe and Mail - June 6th, 2017 [June 6th, 2017]
- Politics biggest determinant of economic future, says Page - Tbnewswatch.com - June 6th, 2017 [June 6th, 2017]
- Our Turn: Pass SB 129, save 900 New Hampshire jobs - Concord Monitor - June 6th, 2017 [June 6th, 2017]
- We'll Always Have Paris: Trump's Impact On The Climate Agreement - HuffPost - June 6th, 2017 [June 6th, 2017]
- A strategy that will make Canadian innovation flourish - The Globe and Mail - June 6th, 2017 [June 6th, 2017]
- Ocean Conference Side Events Highlight Cooperation on SDG 14 ... - IISD Reporting Services - June 7th, 2017 [June 7th, 2017]
- We must tap 'blue economy' for progress - Daily Nation - June 8th, 2017 [June 8th, 2017]
- Minnesota Power Proposes Next Step in EnergyForward Plan - POWER magazine - June 9th, 2017 [June 9th, 2017]