IMF calls on developed nations to cut deficit at 8.75% of GDP

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The IMF (International Monetary Fund) today called on developed countries to reduce its deficit at 8.75 percentage points of GDP (Gross Domestic Product) in the next decade, so that the debt falls to 60% of GDP, despite economic recovery have increased tax revenues.

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As a group, the debts of rich countries will fall four tenths this year, but the reduction was due solely to help decrease the financial sector in the United States, said the IMF, which today published two reports on the fiscal situation in the world.

If this factor were deleted, the deficits of developed countries would be larger in 2010 than in 2009, despite the resumption of economic growth.

Therefore, the organization plans to multilateral asked developed nations to address the public accounts and that those countries that already realize the tax burden to adopt immediate measures.

The IMF has recommended raising the age of two years to retire, reduce the amounts of salaries to civil servants, social investment, agricultural subsidies and military spending.

He also advised raising the burden on real estate, tobacco, alcohol, fuel and VAT (Value Added Tax).

Moreover, the IMF suggested taxing emissions or auctioning of pollution permits to emit the gases that aggravate the greenhouse effect, which, besides improving the environment, would be a new source of revenue for governments.

“This adjustment is not impossible,” he said today at a news conference, Carlo Cottarelli, director of fiscal affairs department of the IMF.

Already in emerging countries, deficits have fallen more slowly than expected, but even so, the situation is better, according to the IMF.

The governments of emerging countries should lower the budget gap by 2.2 percentage points of GDP, which would leave its debt by 40% of GDP, according to data of the entity.

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