India is expected to have a stable debt-to-GDP ratio going forward, a senior official from the International Monetary Fund said on Wednesday and recommended rationalization and simplification of Goods and Services Tax (GST).
According to Paolo Mauro, Deputy Director of the IMF Fiscal Affairs Department, there will be a gradual resumption of the rise in the global public debt-to-GDP ratio in the medium-term.
"Our baseline projection is for the global public debt-to-GDP ratio to reach 100 per cent again by 2028. It is going to take a few years, but that seems to be the direction of travel," Mauro told PTI in an interview.
In 2020 there were massive interventions on the part of governments around the world to support people and firms. That implied a lot of spending and a big rise in government debts.
"We reached the peak at the end of 2020 of a 100 per cent when it comes to the ratio of public debt-to-GDP. In subsequent years there was a recovery and globally at the end of 2022, the .
