International Monetary Fund. Asia and Pacific Dept
Assessment of the Indian Experience
8. India adopted the FRBMA in 2003 in response to high and increasing public debt and persistently-large deficits . The Act required the government to commit to multi-year fiscal targets, as well as report and publish deficitoutcomes (which has been done). The government is required to make public a Medium-Term Fiscal Policy Statement, a Fiscal Policy Strategy Statement, and a Macroeconomic Framework Statement. These documents are meant to improve transparency and ensure the consistency of current and
/ GDP over total employment.
7/ Personal disposable income deflated by the implicit deflator for private consumption.
8/ In percent of household disposable income.
9/ In percent of potential GDP.
10/ Index. Base 1995-100. For 2000, data as of July.
11/ In percent of GDP.
4. The 2000 general government deficit is now officially projected at 1.4 percent of GDP, with both expenditure and tax levels above those projected in the staff report . The deficitoutcome compares favorably with the initial budget target of 1.8 percent of GDP
The two newly autonomous countries within the Kingdom of the Netherlands face substantial challenges. Growth has been low, and unemployment high. The current account deficit has widened to worrisome levels, increasing the vulnerability of the peg to the U.S. dollar and stimulating calls for dollarizing or dissolving the currency union. A substantial adjustment is needed to bring the underlying current account deficit to historically sustainable levels over the medium term. This could be facilitated by measures to restrain credit growth, supported by fiscal consolidation.
This 2019 Article IV Consultation with Republic of Macedonia discusses that after a protracted political crisis, the economy has entered a period of solid growth and stability. Over the recent years, the authorities have reviewed the reform momentum, with crucial institutional and governance reforms and efforts to make public finances more sustainable and equitable. Growth is expected to accelerate in 2020. Lower taxes and higher pensions and wages?including public sector and minimum wages?are expected to provide a further, albeit one-off, stimulus to consumption. Export and investment growth would remain robust but slow somewhat, reflecting weak growth in trading partners. An ambitious consolidation is needed to rebuild fiscal policy space and re-orient public spending toward investment. Reforms to address key labor market and institutional weaknesses will help lift medium-term growth and speed up income convergence. Although growth has been solid in the past two decades, it has not been enough to substantially narrow North Macedonia’s large income gap with the European Union. In order to accelerate convergence, it is essential to continue reforms to improve the public administration, rule of law, and control of corruption.
nonetheless continues to be below budgeted yearly amounts. The deficitoutcome is considerably below what was envisaged in the supplementary budget approved in October 2019 (2.5 percent). These developments do not materially affect staff’s baseline projections.
Revised composition of 2018 GDP . Although nominal GDP and real GDP growth for 2018 remained unchanged in the latest data update published by the State Statistical Office, the composition of real expenditures was revised. According to the update, real investment contracted by 7.3 percent in 2018 (versus 0.9 percent
France’s economic short-term outlook is positive, and long-term prospects have improved. Fiscal adjustment remains high on the government’s agenda. Tax reforms have improved the economy’s growth potential. Reforms in financial, labor, and product markets are necessary to boost job creation, prepare the economy for aging, and allow it to benefit from global activity. The financial sector’s profitability and capitalization put it in a good position to manage increasing risks. Structural reforms in labor and product markets remain essential to boost long-term growth and secure fiscal sustainability.