The Organization for Economic Co-operation and Development (OECD) has raised i
The Organization for Economic Co-operation and Development (OECD) has raised its projections for contraction of India’s economy to 10.2 per cent for the current financial year from its earlier estimates of 3.7-7.3 per cent due to extended lockdown to fight coronavirus.
However, the organisation now expects the world economy to be better placed and forecast its fall by 4.5 per cent in 2020 against 6 per cent earlier.
In its report, titled Interim Economic Assessment Coronavirus:Living with uncertainty, OECD attributed its decision on India to “the prolonged spread of the virus, high levels of poverty and informality, and stricter confinement measures for an extended period”.
It said high public debt and contingent liabilities, or a low tax base, constrain the further use of fiscal policy to support growth and incomes of vulnerable groups in India.
The Centre’s fiscal deficit has already crossed the budgeted level by July. After…