Govt debt to rise to 90.6% of GDP in FY22: IMF

The International Monetary Fund (IMF) has projected the government debt, including that of the Centre and the states, to rise to 90.6 per cent of GDP during 2021-22 as compared to 89.6 per cent of GDP in the previous fiscal. Debt will then moderate to 88.8 per cent during 2022-23, but will remain over 85 per cent during the next five years till 2026-27. According to IMF Deputy Director of Finance Paolo Mauro, it is important to give a signal that there is a medium-term fiscal framework in place that ensures investors that the debt ratio will decline in the medium term. India must focus on public investment in the green sector as the economy recovers from Covid-19 pandemic. He also stressed on providing adequate support, especially to the poor, through social protection and employment benefits.