G20 finance ministers in South Korea have said that excessive budget deficits should be tackled immediately to ensure continued recovery from the global economic crisis.

Ministers and central bankers meeting in Seoul said that worldwide, the economy has recovered faster than expected from the crisis, but key challenges remain. The meeting on Friday set the agenda for a summit of G20 leaders in Toronto on June 26 and 27.

The ministers said in a statement that countries need to rein in budget deficits and ensure sustainable public finances.

The ministers further said, "The recent volatility in financial markets reminds us that significant challenges remain and underscores the importance of international co-operation."

The BBC reported on Saturday that the G20 ministers did not come to an agreement on a global bank tax or refer to such a tax in their statement. A global bank tax is supported by the United States and Europe, but opposed by some developing nations, as well as Canada and Australia. (With Inputs from Agencies)