The International Monetary Fund (IMF) will soon be signing a memorandum of understanding (MoU) with India for setting up a South Asia Regional Training and Technical Assistance Center (SARTTAC) in the country by the multilateral funding agency.
The union cabinet on Thursday gave its approval for the MoU with IMF for the setting up of SARTTAC in India. It also authorised the finance minister to approve related decisions in respect of India's contribution for setting up of the centre, including letter of understanding for financial contribution by India, site of the SARTTAC, representative of India on the steering committee on SARTTAC, etc.
The SARTTAC will be a collaborative venture between the IMF, the member countries, ie, Bangladesh, Bhutan, India, Maldives, Nepal and Sri Lanka and development partners for supporting the capacity development needs of the members. Additional member countries could join SARTTAC at a later stage. SARTTAC will also selectively cater to the capacity building needs at the states level, especially in India.
The IMF is organising a Regional Conference on 'Advancing Asia: Investing for the Future' in New Delhi. The MoU may be entered into during this conference.
The MoU will help in capacity building of government officials, including state level in macro, fiscal, monetary policies by the IMF and greater coordination between the six member countries of South Asia.
Capacity development at central and states level in fiscal and financial policies will enhance revenue mobilization and development of policies aimed at more effective public and financial management. This will result in economic development and inclusive growth in the country.
Capacity development by the IMF will bring in the best practices from across the globe, as well as the South Asian region, resulting in innovative solutions to fiscal, monetary and financial issues and effective response through use of IT and innovative techniques.