New Delhi, March 10 (IANS): The union cabinet on Thursday gave its approval to an MoU between India and the International Monetary Fund (IMF) to set up South Asia Regional Training and Technical Assistance Centre (SARTTAC), a collaborative venture to support the capacity development of the member-nations.

The cabinet also authorised the finance minister to approve related decisions in respect of India’s contribution for setting up of the centre, including Letter of Understanding for financial contribution by India, site of the SARTTAC and representative of India on the Steering Committee on SARTTAC. 

The members of the collaborative venture are Bangladesh, Bhutan, India, the Maldives, Nepal and Sri Lanka. Additional member countries could join SARTTAC at a later stage. 

SARTTAC will also selectively cater to the capacity building needs at the state level, especially in India.

"The MoU will help in capacity building of government officials including at the state level in macro, fiscal, monetary policies by the IMF and greater coordination between the six member countries of South Asia," said an official statement. 

"Capacity development at central and state level in fiscal and financial policies will enhance revenue mobilization and development of policies aimed at more effective public and financial management. This will result in economic development and inclusive growth in the country," added the statement.