The International Monetary Fund (IMF) has asked the US administration to reverse its decision to implement federal budget cuts that were introduced earlier this year.

"The deficit reduction in 2013 has been excessively rapid and ill-designed. These cuts should be replaced with a back-loaded mix of entitlement savings and new revenues, along the lines of the administration's budget proposal," the IMF said.

The global financial body described the federal cuts as `excessively rapid and ill-designed' and also said that the plans to reduce deficit would impact the economy's growth this year. The IMF said that the US economy is expected to grow at the rate of 1.9 per cent in 2013 but pointed out that the growth could be 1.75 percentage points higher if the government does not implement federal cuts.

The IMF noted that the overall economy is growing and the fundamentals of the world's largest economy have been gradually improving. It noted that the economy has recorded increasing house prices and construction activity, better household financial position, an improvement in the labour market and higher corporate profitability.

Managing director Christine Lagarde said that the government is required to slow the fiscal adjustment this year that would boost growth in the country.