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India needs to spend on infrastructure, MGNREGA: Gita Gopinath

Gita Gopinath also said a credible divestment plan would boost the confidence of the markets, adding that the government must keep the borrowing costs low during the transition period.

January 28, 2021 / 10:53 PM IST
Gita Gopinath, IMF Chief Economist.

Gita Gopinath, IMF Chief Economist.

India needs a high quality public infrastructure spending which is job rich, said Gita Gopinath, Chief Economist, International Monetary Fun, on January 28.

Her comment ahead of the Union Budget 2021-22 that Finance Minister Nirmala Sitharaman will present on February 1.

She said the budgetary outlay for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) must be extended as it could play a critical role in helping poor households and tackling growing income inequalities as a result of the COVID-19 pandemic.

Speaking at an event organised by the National Council of Applied Economic Research, Gopinath also reiterated the need for credible divestment plans in India and bringing in greater effectiveness in goods and services (GST) tax regime.