With public debt currently at historic highs in advanced and emerging market economies, the IMF has advised countries to avoid policies that increase economic fluctuations. Vitor Gaspar, Director, IMF Fiscal Affairs Department has also advised countries to build strong public finances in good times in order to tackle looming risks. Countries are advised to avoid procyclical fiscal policies that exacerbate economic fluctuations and ratchet up public debt. In emerging market economies, debt at almost 50 per cent of GDP on average is at levels that in the past have been associated with fiscal crisis. In contrast, for low-income developing countries, average debt-to-GDP ratios at 44 per cent of GDP are well below historical peaks.

(Financial Express)