International Monetary Fund quota tweak delay a concern

Development Committee is the ministerial-level forum of the World Bank Group and the International Monetary Fund for intergovernmental consensus-building on development issues. “Both institutions highly appreciative of policy steps of India”, he said. The Executive Directors and the Bank should make an objective assessment of the financing needs of the SDGs. The new goals are closely linked with this summit. “The IBRD financing which is non-concessional and does not flow from the donor resources should not get accounted for in 100 billion flow”, he said.

As per reports, Arun Jaitley, Finance Minister shared his views about the global economic recovery and in an official statement asserted that looking a the current scenario the global economic recovery is certainly unsure. “The Indian economy grew by 7.3 per cent during the last year, significantly better than 6.9 per cent recorded in the previous year…..This year India expects to do even better”, said Jaitley. With expected growth of only 4.3% for 2015, the outlook for the developing countries has deteriorated.

He also enthused confidence over achieving higher GDP growth rate.

The consultations on the World Bank’s proposed “Environment and Social Framework” must ensure that the new framework is realistic, simple to implement, and affordable in terms of cost and time.

Speaking at the plenary session of the global Monetary Fund and World Bank meetings at Lima, Peru, Jaitley expressed concerns about the unprecedented delay in quota and governance reforms at the IMF, pointing out that this constrains the fund in meeting its obligations.

Consisting of 24 members who are finance ministers, central bank governors or others of comparable rank, the IMFC is a key body providing strategic direction to the work and policies of the International Monetary Fund.

The Finance Minister has held bilateral meetings with US Treasury Secretary Jacob Lew, Finance Minister of France Michael Sapin, Finance Minister of China Lou Jiwei and other financial leaders from around the world. India has stepped up public investments, particularly in infrastructure sector which offset slowdown in private investments.

Similarly, he said that a couple of years back, India was suffering from double-digit inflation and now the inflation has dipped to a low of 3.7 per cent. Participants in the G20 Finance Ministers meeting also approved the final package of measures to reform the worldwide tax rules in a comprehensive, coherent and co-ordinated way.