The International Monetary Fund (IMF) and World Bank (WB) should enhance the contribution quota of India viewing the global importance of this country, ask India to both the world economic organisations.
Attending a host of meetings in Washington, Indian delegates led by Planning Commission Deputy Chairman Montek Singh Ahluwalia appealed the world economic Institutions to enhance the contribution of India in funding from the current quota of 2% to 4%, as India is now one of the key players in global economy.
“Clearly our view is that India’s share should be increased,” said Ahluwalia. The hike in the quota reflects the economic importance of the country and raises the voting rights in the economic organisations.
India at present contributes USD10-billion and willing to pay the same amount or more.
The IMF uses a complex formula of contribution based on the country’s purchasing power. On that account, India’s purchasing power has been enhanced and par to 4% of the formula, added India.
“Our view is that our importance in world economy is more than 2 per cent,” said Ahluwalia.
Moreover, India also indicated that if IMF issues the bond, India would like to purchase it and the increase in India’s contribution would be in the form of issued bond, which would be bought by Reserve Bank of India.
According to sources, IMF is finalizing plans of its first bond offering and is lining up Brazil, Russia, India and China (BRIC) countries as purchasers.
‘IMF should allow the countries to invest in their reserves to buy security bonds so that no fiscal position is affected. A redeployment of funds also does not require any government permission, added Ahluwalia.
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