India Post News Paper

Blog

 Breaking News

IMF says corporate income tax cut will help revive investment in India

IMF says corporate income tax cut will help revive investment in India
October 19
10:58 2019

WASHINGTON: The International Monetary Fund on Friday supported India’s recent decision to reduce corporate income tax, saying it has a positive impact on investment.

It, however, said India should address continued fiscal consolidation and secure long-term stability of the fiscal conditions. “We believe India still has limited fiscal space so they have to be careful. We support their corporate income tax cut because it has a positive impact on investment,” Changyong Rhee, Director, Asia and Pacific Department, IMF, told reporters at a news conference here.

Following a marked slowdown in the last two quarters in India, the economy is expected to grow at 6.1 per cent this fiscal year, picking up to 7.0 per cent in 2020, he said.

“The monetary policy stimulus and the announced corporate income tax cut are expected to help revive investment,” said the top IMF official. Anne-Marie Gulde-Wolf, Deputy Director, Asia and Pacific Department, IMF, said India should address the non-bank financial sector issues. “While there have been improvements that have been put in motion, including efforts to recapitalise the state banks, the issue of non-bank financial institution remains partly unresolved and regulatory equity is one of the issues that needs to be achieved,” she said.

The government is aware of it, she added.

“We also had a FSAP. So there are issues working at that and this is something that is why not yet fully achieved, but is entrained. While there are problems at this stage, increased attention to lending practices of non-bank financial institutions continue to be very important,” Gulde-Wolf said. Responding to a question, she said India overall has a fairly high level of debt and fiscal consolidation needs to be a priority.

“However, implementing fiscal consolidation in the context of a federal system is much more complicated. The level of fiscal structural issues and challenges are different in different states,” she said. So one of the ways in which the IMF is engaged in this question is it has a regional training institute that has started working with the individual states on strengthening fiscal management at the state level, Gulde-Wolf said.

In the context of surveillance engagement with India, she said, the IMF is increasingly placing emphasis on the need to better coordinate the fiscal state level activities and fiscal activities. “But it is a concern that the authorities are taking serious and are working at,” Gulde-Wolf said. PTI

Comments

comments

About Author

India Post Newspaper

India Post Newspaper

Refresh yourself every morning with India Post news coverage, videos & photos in India Post News Paper. Check out the news stories from India and the World.

Related Articles

EPAPER – LATEST EDITION – August 05th, 2022

ADVERTISEMENT – ZEE5

ZEE 5 Rangbaaz

ADVERTISEMENT – GYFTING

GYFTING

ADVERTISEMENT – CALTRANS

Caltrans Near Me

ADVERTISEMENT – SKY RIVER CASINOS

SkyRiver Casinos Opening Soon Near You

ADVERTISEMENT – SHEA HOMES

Shea Homes

ADVERTISEMENT – 22BET

22Bet Sports

POPULAR CATEGORIES

50 SPIRITUAL APPETIZERS – VINOD DHAWAN

50-ad-Indiapost

It’s a lovely book. It feels energetically clear and light. It’s easy to read, dip in and out and most importantly it offers information without fluff! Blessings on this project.

Jac O’Keeffe
Spirituality teacher based in USA.

*Available on Amazon, Flipkart & other online stores*

Download Media Kit

India Post Media Kit