Mumbai, Feb. 28 -- International Monetary Fund or IMF stated in its latest Article IV consultation with India the gross fiscal deficit (GFD) of central government is estimated at 4.8% of GDP in 2024-25, which stands lower than the budgeted 4.9%. As announced in 2021, GFD has been set at 4.4% for 2025-26 in keeping with the last mile target of below 4.5%. The central government has also announced a new glide path with debt-GDP ratio as the fiscal anchor. The government would endeavour to keep GFD each year during 2026-27 to 2030-31 such that the central government debt is on a declining path to attain a debt-GDP ratio of about 50 (+/-) 1% by March 31, 2031.

IMF noted that the glide path marks a move away from a regime characterized by rig...