New Delhi: The government will have to make an additional payment of USD11 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 percent from 2.44 percent once the reforms come into effect.

“This increase would require an additional payment of USD11 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 USD2.75 billion, around 25 percent 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 Rs 56,000 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 the 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.


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