India desperately needs more demanding structural and financial sector reform steps along with a medium-term financial consolidation plan as a result of increasing debt levels, the International Monetary Fund (IMF) said Thursday.
Reacting to a query on the current budget introduced by Union Finance Minister Nirmala Sitharaman, IMF Spokesperson Gerry Rice reported there is a poorer economic environment in India.
“While the funding rolls on continuing sectoral efforts, there is an urgent need for much more ambitious structural and financial sector reform steps along with a medium-term financial consolidation plan, anchored in real revenue and cost measures, particularly given increasing debt levels,” Rice told reporters.
“The environment is significantly poorer than we had forecast before, a more accumulative financial position, this season, is right, to ensure more accumulative fiscal position in the funding, we believe, is right,” he explained.
“However, over the medium term, to be taking a look at a financial consolidation plan,” Rice explained.
The IMF at January reduced India’s economic growth estimate for the current financial to 4.8 percent.