A high-level team from the International Monetary Fund will visit India next week to hold talks on providing technical assistance. This is the first time that India will be seeking technical assistance from the IMF.
The team will be headed by the director of the IMF's fiscal affairs division.
Senior government officials said the assistance would be extended in two specific areas, state debt and public investment, with emphasis on public-private partnerships.
The IMF, which last month concluded discussions with the Indian government under Article 4, has also raised questions about the country's commitment to the Fiscal Responsibility and Budget Management Act and the United Progressive Alliance government's seriousness in implementing the Common Minimum Programme.
"The IMF has sought to know if the government will be able to reduce its fiscal deficit within the time frame envisaged in the FRBM Act or whether the goals under the Act will have to be revised in wake of the ambitious social objectives set out in the CMP," officials said.
The IMF has also raised the issue of whether there are adequate resources available to finance the social programmes in the CMP.
Moreover, the IMF has raised queries about the position of state finances. Officials pointed out that the interaction with IMF officials on fiscal issues, particularly state debt, was timely since the Twelfth Finance Commission was expected to submit its report this month on several issues, including state debt.
The IMF will examine the present position of state debt and make recommendations on a sustainable level. It would also assist in setting up a database on state debts, an official said.
The IMF will also team up with the World Bank to provide technical assistance in public investment, particularly public-private partnership.
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