India to pay $11 bn for higher voting share in IMF

New Delhi: India will have to make an additional payment of $11 billion towards increasing its voting share in the International Monetary Fund (IMF), once the quota reforms at the multilateral agency are approved, Parliament was informed on Friday.

India’s quota share in the IMF would increase to 2.75% from 2.44% once the reforms comes into effect. “This increase would require an additional payment of $11 billion,” minister of state for finance Namo Narain Meena said in a written reply in the Lok Sabha.

He said the cash outflow would be about $2.75 billion, around 25% of the total amount. “... the balance is in the form of rupee denominated securities that can be encashed when required by the IMF,” he noted.

In the 2012-13 Budget, the government has proposed to earmark Rs56,000 crore in case IMF calls for the payment when the quota reforms comes into effect.

The IMF reviews quota shares of member nations every five years and the last such review happened in 2010.

“The quota payment is an international obligation of Government of India as a member of the IMF. With the growth in India’s economy, its quota share has also increased reflecting the size of gross domestic product (GDP),” the minister noted.