Leaders pledge to cut deficits, debt

Leaders of the world's biggest countries have pledged to halve budget deficits by 2013 and stabilise or reduce government debt by 2016.

The leaders who attended the G20 summit, said their “highest priority is to safeguard and strengthen recovery and lay the foundation for strong, sustainable and balanced growth, and strengthen our financial systems against risks,” the communiqué said adding that "these (actions) will be differentiated and tailored to national circumstances.

The summit, which concluded in the Canadian city of Toronto on Sunday, acknowledged that, after the downturn, the economic recovery varies in pace across the world and a delicate balance is needed between restoring budget discipline and sustaining growth.

"There is a risk that synchronised fiscal adjustment across several major economies could adversely impact the recovery. There is also a risk that the failure to implement consolidation when necessary would undermine confidence and hamper growth,” it said.

Countries already facing "serious fiscal challenges" should accelerate their budget reductions, the G-20 said.

The leaders also acknowledged coming up short in the effort launched in Pittsburgh to rebalance global growth, saying "we can do much better." – BuaNews