IMF Conference

Securing Sustainable Finances and Medium-term Fiscal Frameworks: International Experience and Relevance for India

CSEP-IMF High-Level Roundtable

April 23, 2021

Faced with the COVID-19 shock, fiscal support has played a critical role in saving lives and livelihoods and prevented more severe economic contractions. At the same time, fiscal deficits have increased in advanced economies, emerging markets, and low-income countries and public debt levels have reached almost 100 percent of GDP globally. In India, and in conjunction with monetary and financial sector policies, fiscal policy has played an important role to support the economy and provided needed resources to the most vulnerable.

While public debt levels increased at the global level and in India, continued policy support remains critical until the COVID-19 shocks are well contained and the recovery well entrenched. Against this background, a CSEP-IMF high-level roundtable will explore the role of medium-term fiscal frameworks and strategies to enhance fiscal space, ensure sustainable finances and maintain continued market confidence. On the basis of the international experience—and following the recent announcement of the FY2021/21 budget as well as the recommendations of the 15 Finance Commission report, this roundtable will bring together international and India experts to facilitate an exchange of ideas on medium-term fiscal frameworks and their role in securing sustainable finances.