RBI challenges IMF’s call for larger fiscal consolidation

Study argues bigger budget cuts not necessary if government focuses on development spending


Officials from India’s central bank have rejected a call by the International Monetary Fund (IMF) for the government to make significant cuts to the national budget.

The six economists, including the deputy governor of the Reserve Bank of India (RBI) Michael Patra, ran their own simulations of the country’s fiscal outlook. 

In a paper published in the latest RBI bulletin on February 20, the officials argue that the government can reduce India’s debt-to-GDP ratio by “recalibrating” public

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account