IMF Backs UK's Deficit Reduction Plan

The International Monetary Fund endorsed the UK finance minister's proposal to cut the deficit, praising plans to increase revenue sustainably. The IMF highlighted necessary reforms to enhance the fiscal framework, including reducing the time frame for fiscal rules implementation.

The International Monetary Fund (IMF) has expressed its support for measures laid out by British finance minister Rachel Reeves to reduce the country's deficit. Reeves unveiled the budget plan on Wednesday, aiming for long-term fiscal consolidation.

An IMF spokesperson stated, "We support the envisaged reduction in the deficit over the medium term, including by sustainably raising revenue." This endorsement suggests confidence in the UK's approach to bolstering economic stability through revenue enhancement.

The IMF also pointed to critical reforms aimed at reinforcing the fiscal framework as a positive development. These reforms include shortening the time horizon of fiscal rules, a move designed to respond more effectively to economic changes and ensure better fiscal discipline.

(With inputs from agencies.)