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India received the highest number of regressive tax recommendations from the International Monetary Fund (IMF) between 2022 and 2024, according to an analysis by Oxfam. The analysis, released ahead of the IMF and World Bank spring meetings in Washington, has flagged that the global body is applying "double standard" by giving largely progressive advice to wealthy countries while suggesting regressive measures for others that are "likely to exacerbate inequality". The report said 59 per cent of the IMF's tax advice to low- and lower-middle-income countries was regressive, while 52 per cent of its recommendations to high-income countries were progressive. A regressive tax refers to a uniform taxation system which burdens those in lower income groups more than high earners. In contrast, a tax levied in proportion to one's income is termed progressive. Oxfam examined 1,049 tax recommendations made by the IMF to 125 countries between 2022 and 2024 and found that only 30 recommendations,
IMF chief Kristalina Georgieva on Thursday asked central banks grappling with the impact of the US-Israel war on Iran to fight inflation even at the cost of growth, arguing that "pain was an unavoidable consequence of any conflict". In her speech at the IMF Headquarters here, Georgieva also cautioned policymakers from across the world to reject "go-it-alone" actions such as export controls and price controls which can further upset global conditions. "A word of caution upfront: this being a classic negative supply shock, demand adjustment is unavoidable. We cannot go through it without some pain," she said, referring to the impact of costlier oil on global economies. "Policy makers can help to reduce this pain in multiple ways. Certainly, one way they can help is please do not make matters worse. So, I appeal to all countries to reject go-it-alone actions export controls, price controls, and so on that can further upset global conditions: don't pour gasoline on the fire," Georgie
The International Monetary Fund, the World Bank and the World Food Programme have said that the war in the Middle East has triggered one of the largest disruptions to global energy markets and will inevitably lead to rising food prices and food insecurity. In a joint statement, the heads of the three organisations said the burden of rising food prices will fall most heavily on the world's most vulnerable populations. "The Middle East war is upending lives and livelihoods in the region and beyond. It has already triggered one of the largest disruptions to global energy markets in modern history. "Sharp increases in oil, gas, and fertiliser prices, together with transport bottlenecks, will inevitably lead to rising food prices and food insecurity," said the joint statement issued after a meeting of the heads of the three institutions on Wednesday. They said the three organisations will continue to monitor the developments closely and coordinate the use of all available tools to suppo
A "buoyant" US economy is poised to see accelerated growth and lower unemployment this year. But big federal budget debts "represent a growing stability risk," the International Monetary Fund said Wednesday. The 191-country lending organisation's assessment of the world's biggest economy was mostly positive. The IMF saw US gross domestic product - the country's output of goods and services - growing 2.4 per cent in fourth-quarter 2026 from the last three months of 2025, up from 2.2 per cent growth the year before. It sees US unemployment dropping from 4.5 per cent in late 2025 to 4.1 per cent in 2026 and inflation falling to the Federal Reserve's 2 per cent target by 2027. IMF managing director Kristalina Georgieva said the Fed, which cut its benchmark interest rate three times in 2025, could afford to push it down to around 3.4 per cent from 3.6 per cent currently. But it should hold off on deeper cuts barring a "material worsening'' in the American job market, she said. The United
The IMF's current Sri Lanka bail out would continue with no changes despite the economic impact due to widespread devastation after Cyclone Ditwah, a delegation of the global lender told President Anura Kumara Dissanayake on Wednesday. The representatives of the International Monetary Fund (IMF), who are in Sri Lanka to assess the damage caused by Cyclone Ditwah that left over 600 dead in late November, met with Dissanayake at the Presidential Secretariat, the President's Media Division (PMD) said here. The IMF conveyed that Sri Lanka is currently moving in the right economic direction despite facing a severe disaster situation, Dissanayake's office said, adding, "the IMF representatives stated that there would be no changes to the agreement relating to the Extended Fund Facility (EFF) programme being implemented with Sri Lanka." The discussions relating to the release of the sixth tranche under the programme would resume in March, it added. Sri Lanka is to receive around USD 330 .