India, UK for reforms and increasing funds in IMF

NEW DELHI: Pitching for quota and governance reforms in the International Monetary Fund (IMF), India and Britain today said the funds of the multilateral lending agency should be adequately increased to help it play a meaningful role in mitigating global economic problems.

"Both sides (India and the UK) are committed to ensuring that the IMF is adequately resourced to play its systemic role in the international financial system in support of its entire membership....," said a joint statement after a meeting between UK Chancellor of Exchequer George Osborne and Finance Minister Pranab Mukherjee here.

The two sides were of the view that the quota and governance reforms of IMF be implemented within the agreed timelines, it said.

Mukherjee and Osborne, during the Fifth Ministerial level India-UK Economic & Financial Dialogue (EFD), agreed that while the global economy has stabilised in recent months, growth will remain subdued and at risk from a series of threats.

"UK and India share a common commitment to play their part to support the recovery, ensure financial stability and restore confidence. Both countries remain determined to deliver necessary fiscal consolidation plans to secure sustainable public finances," the statement said.

The two countries agreed to remain committed to pursuing the financial regulatory reform agenda as per the time table agreed in G-20, in an internationally consistent and non- discriminatory manner.

They also recognised the need for countries to sign the Multilateral Convention on Mutual Administrative Assistance in Tax Matters and engage in automatic exchange of information, where legally required, to improve tax compliance and decrease tax evasion.