New Delhi: The Government of India is in the final stages of preparations for the Budget 2022. Finance Minister Nirmala Sitharaman is all set to present Budget 2022 on February 1, 2022. Days before the Union Budget presentation, IMF Deputy Managing Director Gita Gopinath has urged Sitharaman to address the uneven recovery with Budget 2022-23. By adequately funding the Rural Employment Guarantee Scheme and ensuring free food rations after March.
Gopinath said in an interview with BloombergQuint on Wednesday that he also expects the government to focus more on health care spending and increase education expenditure.
Gopinath is also hoping that India will continue investing in infrastructure with the asset monetization programme. He said India should come up with a credible medium-term target for fiscal deficit that will help keep financing costs low at a time when interest rates are set to rise in advanced economies like the US.
Meanwhile, the IMF on Tuesday, January 25, slashed India’s economic growth forecast for the current fiscal by 0.5 percentage points to 9 per cent. Chief Economist Gopinath said the slight decline is mainly due to the spread effect of the Omicron variant. Read also: Google’s foldable smartphone could be called Pixel Notepad: Report
“If you look at the 2021-22 financial year, we have a marginal decline of -0.5 percentage points and for the next financial year 2022-23 we have a marginal upgradation of 0.5 percentage points. So, the growth from the previous financial year is Now nine per cent and for this year it is now nine per cent. We have raised it a little bit,” Gopinath told reporters during a press conference. Read also: Samsung Galaxy Unpacked event on February 9: Timings, what to expect and all you need to know
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