The International Monetary Fund (IMF) has praised the Union budget 2021 presented by the India’s finance minister Nirmala Sitaraman for being growth specific and focusing economic recovery.
Responding to the question asked on the budget, Director of communications at the IMF, Gerry Rice said, “We welcome the Indian government budget’s focus on growth. Fiscal policy can and should play an important role in facilitating a strong and inclusive economic recovery”. He added, “We also welcome measures to improve fiscal transparency by including food subsidies in the budget. Of course, a medium-term fiscal consolidation strategy will be important to ensure credibility”.
He also said, “And we also agree with the need to further strengthen the financial sector and look forward to the details of the proposed measures in that area”.
The Union budget 2021 focusing on health, education and infra development is said to be capable to enhance the growth potential of the country if fully implemented.