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economy | IST

Budget should remain accommodative; under-implementation must be prevented: IMF's Gita Gopinath

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International Monetary Fund's (IMF) chief economist Gita Gopinath in an interview with CNBC-TV18 insisted there should not be an under-implementation of the budget. She said while revenues have been strong in the current fiscal year, expenditures are not in line with the budget targets.

Budget 2022 should remain accommodative as it was this year to support economic recovery, said International Monetary Fund's (IMF) chief economist Gita Gopinath on Thursday, adding that fiscal support should remain in an expansion stance.
"Firstly, at a macro level, just in terms of the stance of the fiscal deficit, or the fiscal budget, we know, it should remain accommodative, like it has been this year in 2021-22. I think it would remain accommodative so that it continues to support the recovery," said Gopinath in an interview with CNBC-TV18.
Gopinath said that while consumption and investment are recovering, it is a gradual process. "So our view is that for the near term, fiscal policy should stay accommodative," She said.
She said while revenues have been strong in the current fiscal year, expenditures are not in line with the budget targets. According to her, more clarity is needed on the government's medium-term fiscal consolidation plan.
"A little more clarity on how exactly those targets in the medium term would be attained, is important to communicate," she said.
She insisted there should not be an under-implementation of the budget.
"I think it is important to focus also on making sure that there is not an under-implementation of the budget, this round and the next round, especially when a lot of the expenditures on the capital spending side... You just have to prevent under-implementation," she said.