IMF to provide Sri Lanka $350 million after fourth review of bailout
Amid the island's unprecedented economic crisis, the International Monetary Fund (IMF) in March 2023 approved a nearly $3 billion facility to assist Sri Lanka's 'efforts to durably restore macroeconomic stability by restoring fiscal and debt sustainability.
The facility helped Sri Lanka revive its bankrupt economy by building its reserves and successfully negotiating debt restructuring with external creditors.
'The Executive Board of the International Monetary Fund (IMF) completed the Fourth review under the 48-month Extended Fund Facility (EFF) Arrangement, allowing the authorities to draw SDR254 million (about $350 million)," the global lender said in a statement.
This brings the total IMF financial support disbursed so far to SDR1.27 billion (about $1.74 billion).
The reforms that were imposed on the IMF's insistence have led to economic hardships, which the global lender said were a must to ensure growth and stability.
The unpopular measures led to the change of government in 2024. The current government led by the National People's Power, which had been critical of the IMF-prescribed reforms and had vowed to review them, continues to stay on course with the IMF programme.
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Business Standard
an hour ago
- Business Standard
IMF says US tax, spending bill runs counter to deficit-cutting advice
The massive US tax and spending bill slated for a final vote in Congress runs counter to the International Monetary Fund's recommendations that Washington reduce fiscal deficits over the medium term, IMF spokesperson Julie Kozack said on Thursday. Kozack told a regular news briefing that there was a broad consensus that the Republican bill will add to US fiscal deficits, while the US needs to start a fiscal consolidation. "From the IMF side, we have been consistent in saying that the US will need to reduce its fiscal deficit over time to put public debt-to-GDP on a decisive downward path," Kozack said. "Of course, the sooner that process starts to reduce the deficit, the more gradual the deficit reduction can be over time." Kozack said that there were many policy options for the US to reduce deficits and debt, adding: "It is, of course, important to build consensus within the United States about how it will address its these chronic fiscal deficits." In recent years, the IMF has recommended that the US raise taxes, including on middle income earners, to close fiscal deficits. The Republican tax bill extends 2017 tax cuts and adds new tax breaks for many Americans. The IMF advice is at odds with the views of US Treasury Secretary Scott Bessent, who has consistently said that he disagrees with traditional budget forecasts and believes that the so-called "One Big Beautiful Bill Act" will spur additional US economic growth that will boost revenues. The United States is the biggest shareholder of the IMF. Bessent, who manages the US stake, has criticized the Fund for straying too far from its core economic stability and surveillance missions. Kozack said that the IMF was examining details of the US legislation and the likely impact on the economy, and will incorporate its analysis into the late July update of its World Economic Outlook global growth forecasts. The forecasts also will assess the state of play on US tariffs, after President Donald Trump's July 9 deadline to subject many countries to sharply higher duties unless they agree trade deals.
India Today
4 hours ago
- India Today
How poor is ‘poor' in India?
Can data really define poverty in India? The numbers certainly suggest progress. Fewer people live below the international poverty line. More people have access to food, jobs, electricity, and housing. Government dashboards show consistent improvement across key behind the graphs and charts, millions still live just one setback away from hunger. Their names may no longer show up in poverty counts, but their reality hasn't changed much. They are not poor on paper, but they aren't secure a large part of India, the line between survival and collapse is still painfully EXIT POVERTY, YET REMAIN VULNERABLE The World Bank's latest global poverty update, released in June 2025, confirms the headline: extreme poverty in India has dropped sharply. The share of people living on less than $3 a day, adjusted for local prices (what economists call 'purchasing power parity' or PPP), fell from 27% in 2011 to just 5.3% in 2022. If we use the older $2.15-a-day cutoff, the rate is even lower: just 2.3%.That means nearly 269 million people exited extreme poverty in just over a decade. On the surface, this sounds like a remarkable transformation. But what does it really mean to live above $3 a day in India?To understand that, we need to look at how this poverty line is calculated. The World Bank doesn't use market exchange rates, which vary with inflation and currency swings. Instead, it uses PPP rates, which try to reflect how much a dollar can buy in each on the IMF's latest figures, India's PPP exchange rate in 2025 is about Rs 20.66 for every 'international dollar.'That means $3 a day works out to around Rs 62 per RS 62 A DAY ENOUGH?But that number raises questions. Can Rs 62 a day cover rent, food, transport, medicines, and other basic needs in India? Dr. Vidya Mahambare, Professor of Economics at Great Lakes Institute of Management and an expert in development economics, doesn't think so. 'The Rs 62-per-day threshold appears extremely inadequate when compared to current living costs,' she said. 'One way to consider a minimum threshold for basic living is to compare it with the minimum wage—the lowest legally approved earnings level.'Currently, the central government provides a non-statutory floor wage of Rs 178 per day, below which no state can set its minimum. By contrast, the World Bank's international poverty line for lower-middle-income countries—$4.20 per day—comes to roughly Rs 87 in PPP terms. 'By this measure, around 23.9% of India's population remains below the poverty line,' she also stressed the need to revise India's outdated poverty line. 'The lower the threshold, the lower the poverty headcount ratio,' she said. 'But such a number is not useful for policymaking and doesn't reflect the ground-level reality of people's hardships.'On the use of international poverty lines, she said PPP-based measures are helpful for global comparisons since they account for differences in prices and are more stable than market exchange rates. But for domestic policy, she said, 'the poor in India consume a different basket of goods than the global average. A domestic cost-of-living benchmark more accurately reflects local realities and is better suited for national programs.'FROM POVERTY LINE TO DIGNITY LINEEven the Rs 87-per-day benchmark might understate the true burden. Dr. Swapnil Sahoo, Assistant Professor at Great Lakes Institute of Management, Gurgaon, believes it is time India stopped relying only on income-based definitions of poverty. 'Yes, extreme poverty is down to 5.75%. But that doesn't tell us the whole story,' he said. 'More than 83% of Indians still live on less than Rs 171 a day.'The Rs 171-a-day figure is based on the World Bank's $8.40 poverty line in purchasing power parity (PPP) terms, which is used to assess poverty in upper middle-income countries. At India's current PPP exchange rate of Rs 20.66 per international dollar, this translates to around Rs 171 per person per him, the Rs 65-a-day cutoff for poverty is setting the bar too low. 'That is not a dignified life,' he said. 'We need a dignity line, not just a poverty line.' The Rs 65 figure was recently cited by SBI Research as the poverty threshold for urban India in 2023– to Sahoo, a more honest measure of poverty would start around Rs 250 to Rs 300 a day. This would reflect a life that allows for food, health care, education, some savings, and a sense of security, not just survival. INDIA'S POVERTY PUZZLETo be fair, many government schemes have helped families escape extreme deprivation. Food subsidies, rural roads, cash transfers, and better access to electricity have improved lives in measurable ways. Incomes in agriculture and construction have also grown in some regions. But part of the reason poverty seems lower today also comes down to how it is official household consumption surveys now use a method called the Modified Mixed Recall Period (MMRP). This change helps capture more spending, especially on regular items like food and fuel. As a result, people appear to be consuming more, and poverty estimates is where experts urge caution. India hasn't officially updated its poverty line since 2011-2012. Committees were set up, but their recommendations were never implemented. In the absence of a fresh national benchmark, India is now relying on global official thresholds, Rs 33 a day for urban areas and Rs 27 for rural (set by the Tendulkar Committee), are outdated and politically sensitive. As a result, they have quietly disappeared from fill that gap, India has turned to broader indicators like the Multidimensional Poverty Index (MPI). Developed globally and adapted by NITI Aayog, it tracks things like access to school, electricity, clean water, cooking fuel, and sanitation, offering a fuller picture of to the latest MPI data, India's rate of multidimensional poverty has fallen from 29% in 2013 to 11.3% in 2022. Over 200 million people have moved out of deprivation during this Pradesh, Bihar, and Madhya Pradesh have shown the biggest improvements. Access to basic services has grown, though these same states still carry some of the highest overall poverty reached out to NITI Aayog to seek views on the implications of the MMRP methodology and the relevance of an official poverty line in the multidimensional era. A response was awaited at the time of BLURS THE PICTUREEven as extreme poverty drops, inequality hasn't gone away. The Gini index, a number between 0 and 100 that measures income inequality, has improved slightly, from 28.8% in 2011 to 25.5% in 2022. A score of 0 means perfect equality and 100 means one person has wealth continues to be concentrated at the top. In rural areas, poverty is shaped by shrinking land, low farm incomes, and seasonal migration. In cities, it is about unstable jobs, high rents, and crushing costs that can push families back into debt at any analyst Hardik Joshi argues that India does not have a poverty problem, it has a distribution problem. Citing findings from the World Inequality Database, he points out that the top 1% of Indians now control 40.1% of the country's wealth, while the bottom 50% own just 6.4%. The top 10% take home more than 57.7% of the national his words, this means half the country is fighting for crumbs while a tiny fraction lives in unimaginable luxury. According to Joshi, tax policies, corporate consolidation, and weak labour laws all contribute to protecting wealth at the top and deepening the divide.'We produce enough wealth. We just don't share it fairly,' Joshi writes. 'Until there is real political will to tax wealth, invest in education and healthcare, and support labour protections, inequality will only worsen.'POVERTY ABOVE THE LINEOpposition leaders have criticised the government for celebrating statistical success while ignoring ground realities. In 2024, many pointed out that lakhs of families still rely on subsidised rations. Falling below the poverty line isn't the only form of suffering; many are stuck just above it, constantly on the country sets its sights on becoming a Viksit Bharat (a developed nation) by 2047, should the definition of poverty not evolve too?The methodology used today suggests progress and tells us who is no longer counted as poor, yet says little about those who still live one setback away from crisis—unable to absorb a hospital bill, a missed wage, or a child's school expenses.- EndsMust Watch
Time of India
8 hours ago
- Time of India
School Assembly news headlines for today July 3, 2025: From sports to education, check 20+ national & international news
School Assembly news headlines for July 3, 2025: Today's school assembly news headlines for July 3, 2025 cover over 20 major national and international updates. Prime Minister Narendra Modi has begun a five-nation tour, starting with Ghana. The visit aims to boost India-Africa trade and tech partnerships. In national news, the central government now allows private motorcycles to operate as passenger transport through aggregators. This comes under new safety rules. The Indian Navy has added strength by commissioning the stealth frigate INS Udaygiri. Globally, the US President has announced a 60-day ceasefire plan in Gaza. Meanwhile, the IMF has approved Sri Lanka's fourth review under its Extended Fund Facility. In sports, fans are keeping up with results from ongoing tournaments and global leagues. These headlines give students a clear and informative look at the day's top stories—perfect for today's school assembly. Today's national news headlines in English for school assembly, July 3, 2025 Prime Minister Narendra Modi begins historic five-nation diplomatic tour to strengthen multilateral ties. India warns the United States over Pakistan-backed terrorism, emphasizing nuclear blackmail will not deter response. Central government launches 'RailOne' app to unify all railway services including ticketing and complaint redressal. GST relief expected soon on essential daily items to ease inflationary pressure on common citizens. India Meteorological Department forecasts light to heavy rainfall across multiple states in the coming week. Today's international news headlines in English for school assembly, July 3, 2025 Iran suspends cooperation with the UN nuclear agency, causing a global rise in oil prices amid geopolitical tensions. Former US President Donald Trump announces Israel's agreement to a 60-day Gaza ceasefire and urges Hamas to support it. Russian President Vladimir Putin and French President Emmanuel Macron hold their first conversation in three years to discuss Ukraine and West Asia. International Monetary Fund approves $350 million installment for Sri Lanka following economic reform progress. Trump renews call for deportation of U.S.-born offenders amid ongoing immigration debates. Today's sports news headlines in English for school assembly, July 3, 2025 Gukesh and Praggnanandhaa Compete at Grand Chess Tour in Croatia. India Women's Cricket Team Beats England by 24 Runs in 2nd T20I. Indian Boxers Sakshi, Jaismine, and Lakshya Advance to World Boxing Cup Quarterfinals. Manolo Marquez Steps Down as Indian Football Team Coach. Kylian Mbappe Makes Club World Cup Debut for Real Madrid. Today's education news headlines in English for school assembly, July 3, 2025 CUET 2025 Results to be Released Tomorrow; Admission Process to Begin at Top Universities. PM Modi Begins Five-Nation Diplomatic Tour to Strengthen India-Africa Ties. UGC NET 2025 Answer Key Expected Today; Candidates Advised to Check Official Website. Jamia Millia Islamia Announces Large Recruitment Drive; Open to 10th Pass to Graduates. India Reports 25.44 Lakh HIV Cases in 2023; Southern States Contribute 24% of Burden. Today's state news headlines in English for school assembly, July 3, 2025 Kashmir locals warmly welcome first batch of Amarnath Yatra pilgrims, showcasing communal harmony and regional support for the pilgrimage. Puri begins preparations for Bahuda Yatra as devotees enjoy smooth darshan of Lord Jagannath and siblings at Gundicha Temple. Maharashtra signs MoU to develop African Safari at Gorewada Zoo, Nagpur, in partnership with NBCC and Forest Development bodies. Bombay High Court directs expert panel to reassess Mula Mutha floodlines in Pune, seeking report within two months. Local communities in various states actively participate in monsoon preparedness and relief activities amid forecasted heavy rainfall. Top business and economic news headlines for July 3, 2025 Transport Ministry allows cab aggregators to charge up to twice the base fare during peak hours under new 2025 guidelines. Quad launches Critical Minerals Initiative to boost economic security and counter China's price manipulation and supply chain dominance. Over 300 Chinese engineers exit Foxconn India units, raising concerns over Apple's manufacturing momentum amid China's labour restrictions. CSB Bank reports 20% growth in Q1 deposits and 32% increase in advances, highlighting robust banking sector performance. Aurobindo Pharma's subsidiary receives European Commission marketing authorization for trastuzumab biosimilar Dazublys, advancing cancer treatment options. Daily word and thought of the day for school assembly, July 3, 2025 For the school assembly on July 3, 2025, here are the Daily Word and Thought of the Day: Daily Word: PoppyMeaning: A bright, colorful flowering plant, often red, known for its delicate petals and rounded seed capsules. The word "poppy" can symbolize beauty and remembrance. Thought of the Day: "Stand stoutly for your beliefs, even when faced with challenges, for courage and determination shape our character and future." For more informative articles on historical and upcoming events from around the world, please visit Indiatimes Events.
