Finance Minister Calls For Reforms In Mdbs, Credit Rating Systems & Tax Policy At FFD4 In Spain

(MENAFN- KNN India) New Delhi, July 2 (KNN) Finance Minister Nirmala Sitharaman on Tuesday strongly advocated for comprehensive reforms to the international financial architecture, calling for changes in multilateral development bank (MDB) operations, credit rating methodologies, and global tax systems.

Her remarks came during the 4th International Conference on Financing for Development (FFD4), held in Seville, Spain.

Highlighting the need for greater inclusivity and equity, Sitharaman pressed for a restructuring of MDBs to better align lending practices with long-term development goals.

“MDB lending must be backed by robust monitoring frameworks to ensure funds are used effectively,” she said, stressing the importance of transparency and accountability in international finance.

She endorsed the global call for reversing the decline in Official Development Assistance (ODA) and urged developed nations to enhance climate finance contributions.

Emphasising the needs of vulnerable nations, she stated that climate finance must be“predictable, accessible, and concessional,” particularly for adaptation measures.

Citing a G20 expert group report led under India's presidency, Sitharaman noted that achieving the Sustainable Development Goals (SDGs) and addressing global challenges would require an estimated USD 3 trillion annually by 2030.

Of this, USD 2 trillion is expected to come from domestic resources, while USD 1 trillion must be mobilised through external financing-half of which could be sourced from the private sector, with the remainder relying on MDBs and other official channels.

On the contentious issue of credit ratings, she reiterated India's longstanding concerns over the bias in global rating agency methodologies.

She recalled that despite India becoming the fifth-largest economy, its credit rating has remained static at the lowest investment grade for over 15 years-an approach she characterised as misaligned with emerging market realities.

Concluding her address, the finance minister called for a development-oriented global financial framework that respects country-specific contexts, preserves policy space, and delivers on the shared promise of sustainable development.

With a global financing gap exceeding USD 4 trillion annually for developing nations and many SDG targets off track, she stressed the urgency of transformative international action.

(KNN Bureau)

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