IMF directors urge India to replenish fiscal buffers

WHILE FISCAL CONSOLIDATION has progressed, achieving the fiscal deficit target remains challenging, necessitating disciplined spending and strengthened fiscal buffers to safeguard stability, the International Monetary Fund executive board directors in their report.

- FE BUREAU

Amid a challenging global environment, the directors stressed the importance of maintaining sound policies and accelerating structural reforms to preserve stability and advance India's long-term goal of becoming an advanced economy.

After the Article IV Consultation with India, the IMF Executive Board directors endorsed the authorities' commitment to fiscal consolidation in the current year but emphasised that meeting the fiscal deficit target will require strict spending discipline.