Countries Must Deploy Structural Tools For Growth: FM
New Delhi: Finance Minister Nirmala Sitharaman has said a calibrated and balanced approach to deploying a mix of fiscal, monetary and structural measures by countries can help achieve their growth potential and asked the IMF to evolve a policy framework to assess the vulnerability of fragile economies to capital flows.
In her intervention during International Monetary and Financial Committee (IMFC) Plenary Session in the ongoing Annual Meetings 2019 of the IMF and World Bank being held in Washington, US on Saturday, Sitharaman said, “At the National level, a calibrated and balanced approach to deploying a mix of fiscal, monetary and structural measures by countries can help achieve their growth potential, the Finance Minister added, according to a Finance Ministry statement.”
“International Monetary Fund (IMF) should provide solutions that are specific to important growth geographies to help alleviate the current conundrum. IMF should evolve a policy framework that would assess the vulnerability of economies to capital flows and that developing stronger surveillance mechanism with sharper diagnostic tools can mitigate or even prevent the adverse effects on fragile economies”, the FM said, according to a Finance Ministry statement.
On the 15th Round of the IMF’s General Review of the Quotas (15th GRQ) likely to conclude without a quota increase, the Finance Minister stated that work on the 16th Round should begin in right earnest and should have a tight timeframe.
Sitharaman also attended International Monetary and Financial Committee (IMFC) Restricted Breakfast.
The Finance Minister is currently on an official tour to Washington DC to attend the annual meetings of the International Monetary Fund and the World Bank and other associated meetings. She is accompanied by RBI Governor Shaktikanta Das, Economic Affairs Secretary Atanu Chakraborty and other officials.