Column: Global fiscal situation is not very grim

Abstract

Despite weak recovery, fiscal adjustment is expected to continue in most economies including Greece, Portugal and Italy The global fiscal situation is improving with the fiscal deficits declining gradually in most advanced economies despite continuation of fiscal risks and difficult path to fiscal sustainability, according to the Fiscal Monitor released by the IMF on April 16, 2013. In the US, overall fiscal tightening is one of the largest in recent decades and is excessive in light of cyclical considerations. Notwithstanding the weak recovery, fiscal adjustment is expected to continue in most advanced economies like France, Netherlands, Italy, the UK, Ireland, Portugal and Greece. The emerging markets are expected to continue with neutral fiscal policies, given their low levels of debts and deficits, but many have still to work on restoring policy buffers and address other medium-term concerns. Indias fiscal efforts like reduction in subsidies, spending cuts and tax administrative measures are also discussed. Read more at: https://www.financialexpress.com/archive/column-global-fiscal-situation-is-not-very-grim/1103990/