According to the International Monetary Fund, India’s general government fiscal deficit is projected to decline to 8.9% of GDP in 2023 from an estimated 9.6% of GDP in 2022. According to the IMF’s Fiscal Monitor Report, it is expected to decrease further to 8.3% of GDP in 2024.
The report predicts that India’s general government debt will remain stable at 83.2% of GDP in 2023, compared to 83.1% of GDP in 2022.
India’s general government debt is expected to stay constant at 83.2% of GDP in 2023, up from 83.1% in 2022.
As governments face higher interest expenses and pressures to increase public expenditure, including spending on wages and pensions, to catch up with past inflation, fiscal deficits are anticipated to rise slightly to an average of 5% of GDP in 2023, according to the report.
As the global economy recovers from a series of disruptions, fiscal deficits are projected to remain above pre-pandemic levels over the next few years, the report said, adding that the fiscal outlook is subject to significant uncertainty.
Network Hype Team