Opinion | A green flag from IMF’s Gopinath?1 min read 20 Dec 2019, 04:38 PM IST
While a big push to sell state-owned assets could help raise money, it’s not clear if the Centre can raise more than already planned for the year
As India’s government prepares to deliver the next budget, a debate has raged over whether it should carry on with fiscal consolidation or loosen spending to stimulate the economy. Now, International Monetary Fund chief economist Gita Gopinath has weighed in, and she seems to favour the latter option—though within limits. At an industry event on Friday, Gopinath said: “When we speak about fiscal deficit, we also think of it as a medium-term target, something that is to be achieved over a period of time, not necessarily overnight." She added that increasing spending in itself is not a problem. “The question is whether that is accompanied by revenue mobilization."
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