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04-26-2012, 09:37 AM #1
Government to fork out $11 billion for higher IMF quotaIndia's mission to sit at the high table of global finance is going to cost a pretty packet.
The government will shell out over $11 billion to buy a bigger quota in the International Monetary Fund, or IMF. This will give India a greater say in the affairs of the multilateral lender.
Meanwhile, India continues to battle slowing capital flows and a growing fiscal deficit.
Experts say though costly, this is a money well spent. "This money is an investment,'' said Nagesh Kumar, chief economist with UN-Escap. "India is a responsible nation with a growing clout, so it will also have to share some global responsibility."
Under the IMF's quota reforms of December 2010, developing countries will see a more than 6% shift in quota in their favour. India's vote share is expected to rise 2.69% from the current 2.34% once the quota reforms are approved.
The government says not all of the Rs 56,469-crore budget for quota subscription in 2012-13 has to be paid in cash to the IMF....being a human...