Busan (South Korea), June 5 (ANI): Reiterating the need for building a consensus on the Framework of the G-20 and for refining the Mutual Assessment Process in the second stage, India’s Finance Minister Pranab Mukherjee said: “Since policy actions have to be taken at the country level, we have to see how this important dimension can be rolled into the Framework.”

Suggesting that the second stage of the deliberations would best considered after the Toronto Summit, where leaders are expected to agree on the policy parameters of the first stage, Mukherjee, who is in Busan attending the G-20 Finance Ministers meeting, said: “Only once these parameters are clearly known, can we outline the scope of the second stage.”

“The entire exercise must be non intrusive, mutually consultative, constructive and cooperative, so that the singular unity of purpose that the G 20 has shown so far is not compromised. As co-chair in the working group on the Framework it would be our (India’s) endeavour to ensure that this unity of purpose is maintained,” he said.

He said “The Framework is a signature effort of the G-20 and a principal tool by which we aim to deliver in the post-(global) crisis scenario. We should recall that after St. Andrews, there was some delay in kickstarting the framework exercise. But, with the cooperation of all member countries and international organizations, we have been able to make good progress.”

He added: “The market is sending strong signals that the fiscal situation is a matter of concern. While we should all not rush to fiscal exit at the same time so as not to undermine the recovery, especially since the monetary policy instrument is not very effective on account of continuing instability in financial markets.”

Fiscal consolidation, he said is critical for recovery, he said further.

“We need to act before the market forces us to do so. I may point out that fiscal deterioration is a natural corollary of deep and protracted recessions and downturns as governments try to stimulate the economy back to their true potential. This entails ceding some control to markets that have to fund the high deficits. Fiscal consolidation is a natural corollary of the recovery process, as countries can only grow their way out of high levels of public debt,” he said. (ANI)