Greater efforts vital to reduce fiscal deficit, to meet debt target by 2025: IMF

The International Monetary Fund on Tuesday said that greater efforts will be needed to reduce the fiscal deficit as the interim budget envisages a slower pace of fiscal consolidation than previously planned. "The interim budget envisages a slower pace of fiscal consolidation than previously planned, delaying the time to reach the medium-term central-government debt target of 40 percent of GDP," Ranil Salgado, IMF mission chief for India told PTI.

"To ensure that the debt target is met by 2025, greater efforts will be needed to reduce the fiscal deficit. In that regard, further steps to increase GST compliance will be critical to reach budgeted revenue goals," Salgado said in response to a question. The New York Times in a news report after the presentation of the interim budget said that it was packed with handouts.

(With inputs from agencies.)