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Business and Economics > Budgeting

You are looking at 1 - 10 of 19 items for :

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  • Foreign aid x
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Cover Policy Papers
Implementation Plan in Response to The Executive Board-Endorsed Recommendations From The IEO Evaluation on The IMF’s Pandemic Response
International Monetary Fund. Strategy, Policy, & Review Department
The Management Implementation Plan (MIP) proposes actions in response to the Board-endorsed recommendations provided by the Independent Evaluation Office (IEO)’s report on the IMF’s early response to the COVID pandemic. The two IEO recommendations aim for the Fund to (i) Develop special policies and procedures that could be quickly activated to address particular needs and circumstances of global crises and (ii) Take steps to reinforce the Fund’s institutional preparedness to deal with global crises and other large shocks. The MIP highlights how existing workstreams will be used to address part of the recommendations, specifically: (i) Drawing the lessons from the use of precautionary lending instruments during the pandemic and using them in the ongoing review of these facilities; (ii) Drawing the lessons from the implementation of governance safeguards in the context of covid-related emergency financing and respond to the actions identified in the final stocktaking; and (iii) Reviewing financial implications of covid-related lending on Poverty Reduction and Growth Trust (PRGT) resources in the regular updates on PRGT financing and resources. The MIP also defines new actions that aim to enhance the Fund’s preparedness to face future crises and are slated to be implemented by the end of FY25. These consists in: (i) Developing a crisis playbook, which will further codify Management’s commitment to an early participatory consultation with the Board in the event of a global crisis and inform the engagement with the Board on the broad strategy and institutional priorities for responding to the crisis; (ii) Enhancing the process of staff reallocation during a crisis through expanding the staff Talent Inventory to include skills and experience relevant in crises and examining HRD’s coordinating role in staff reallocation, as well as reviewing how recruitment processes could be made more agile in a crisis; (iii) Developing a strategy for surge capacity of the Crisis Management Team; (iv) Reviewing the experience of pandemic-related lending to low-income countries to consider the adequacy of access norms and the possible need for enhancements of the low-income lending toolkit against the long-term financial sustainability of the PRGT; and (v) Exploring ways to further strengthen the coordination with partners, especially the World Bank.
Keywords:
Management Implementation plan; COVID-19; pandemic response; IEO evaluation; lending; IEO recommendation; transparency policy; staff reallocation; implementation plan; Crisis management; Crisis prevention; Emergency assistance; Budget planning and preparation; Global
Cover IMF Staff Country Reports
Seychelles: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for Seychelles
International Monetary Fund. African Dept.
This paper refers to Seychelles’ Request for Purchase Under the Rapid Financing Instrument (RFI). The near-term economic fallout of the coronavirus disease 2019 pandemic is expected to be severe. Restriction in travel will hinder tourism and weaken fiscal and external positions, creating large additional financing needs. The authorities reacted swiftly by taking immediate measures of containment, including border closures, strengthening health policy responses and supporting households and firms. The emergency IMF support under the RFI provides timely resources to the authorities to address the urgent balance of payments and budgetary needs. The assistance of other international financial institutions and development partners is crucial to close the remaining financing gaps, ease the adjustment burden, and preserve economic growth. The authorities are committed to transparency and good governance in the use of emergency financing by providing monthly reports of pandemic-related expenditure to the National Assembly and undertaking an independent audit of such spending and procurement and publishing the results.
Keywords:
ISCR; CR; monetary policy; financing; balance of payments financing need; Seychelles economy; Seychellois authorities; Executive Board discussion; prudent monetary policy stance; Emergency assistance; Fiscal stance; Budget planning and preparation; Global; Sub-Saharan Africa; COVID-19
Cover IMF Working Papers
Fiscal Buffers for Natural Disasters in Pacific Island Countries
Hidetaka Nishizawa
,
Mr. Scott Roger
, and
Huan Zhang
Pacific island countries (PICs) are vulnerable severe natural disasters, especially cyclones, inflicting large losses on their economies. In the aftermath of disasters, PIC governments face revenue losses and spending pressures to address post-disaster relief and recovery efforts. This paper estimates the effects of severe natural disasters on fiscal revenues and expenditure in PICs. These are combined with information on the frequency of large disasters to calculate the rate of budgetary savings needed to build appropriate fiscal buffers. Fiscal buffers provide self-insurance against natural disaster shocks and facilitate quick disbursement for recovery and relief efforts, and protection of spending on essential services and infrastructure. The estimates can provide a benchmark for policymakers, and should be adjusted to take into account other sources of financing, as well as budget risks from less severe as well as more frequent disasters.
Keywords:
WP; private sector; real GDP; government expenditure; Natural Disasters; Pacific Islands Countries; Fiscal Cost; Fiscal Buffers; PIC government; contingent government liability; government cash buffer; government financing source; financial support; Fiscal space; Disaster aid; Budget planning and preparation; Pacific Islands
Cover IMF Working Papers
Donor Competition for Aid Impact, and Aid Fragmentation
Mr. Kurt Annen
and
Mr. Luc Moers
This paper shows that donors that maximize relative aid impact spread their budgets across many recipient countries in a unique Nash equilibrium, explaining aid fragmentation. This equilibrium may be inefficient even without fixed costs, and the inefficiency increases in the equality of donors budgets. The paper presents empirical evidence consistent with theoretical results. These imply that, short of ending donors maximization of relative aid impact, agreements to better coordinate aid allocations are not implementable. Moreover, since policies to increase donor competition in terms of aid effectiveness risk reinforcing relativeness, they may well backfire, as any such reinforcement increases aid fragmentation.
Keywords:
WP; aid allocation; donor competition; Foreign Aid; Aid Effectiveness; Aid Fragmentation; Donor Coordination; donor ranking; donor fragmentation; Budget planning and preparation; Competition; Poverty reduction; Global
Cover IMF Staff Country Reports
Guinea-Bissau: Use of Fund Resources: Request for Third Purchase Under Emergency Post-Conflict Assistance: Staff Report; Staff Supplement; Press Release; and Statement by the Executive Director for Guinea-Bissau
International Monetary Fund
Global economic developments in Guinea-Bissau, especially lower export demand and prices, are expected to slow growth significantly and put pressure on the balance of payments. The 2009 fiscal framework aims to stabilize public finances and avoid new domestic arrears. The authorities are requesting a third Emergency Post-Conflict Assistance (EPCA) purchase of 12.5 percent of quota to support their 2009 economic framework. A third EPCA purchase would give them time to demonstrate a track record of policy performance that could pave the way for a new Poverty Reduction Growth Facility arrangement.
Keywords:
ISCR; CR; government; Emergency Post-Conflict Assistance; EPCA-supported program; debt; donor assistance; clearance plan; discussion of Guinea-Bissau's performance; policy development; Arrears; Emergency assistance; Global; West Africa
Cover IMF Staff Country Reports
Côte d'Ivoire: Request for Emergency Post -Conflict Assistance: Staff Report; Staff Statement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Côte d'Ivoire
International Monetary Fund
The economic recovery in Côte d’Ivoire is crucial to growth throughout the subregion. The fiscal results and mobilized domestic financing enabled the authorities to make payments to the World Bank and AfDB and reduce domestic arrears. Reporting on quasi-fiscal cocoa levies has improved. Energy sector audits are being finalized, and reporting on financial flows has improved. In view of the efforts made at both political and economic management fronts, authorities appreciated the Executive Board’s support for an additional assistance under the IMF’s Emergency Post-Conflict Assistance (EPCA) program.
Keywords:
ISCR; CR; Emergency Post-Conflict Assistance; energy sector audit; government; budget procedure; food CPI; staff appraisal; IMF's support; Arrears; Debt service; Agricultural commodities; Emergency assistance; West Africa
Cover Fiscal Management of Scaled-Up Aid
Fiscal Management of Scaled-Up Aid
Mr. Kevin Fletcher
,
Mr. Sanjeev Gupta
,
Mr. Duncan P Last
,
Mr. Gerd Schwartz
,
Mr. Shamsuddin Tareq
,
Mr. Richard I Allen
, and
Ms. Isabell Adenauer

Abstract

The international community has committed to scaling up aid and improving aid delivery to low-income countries to help them meet the Millennium Development Goals. Other "emerging" donors, public and private, are increasing their assistance, and debt-relief initiatives are creating space for new borrowing. Remittances to low-income countries have been on a precipitous rise, and many countries are benefiting from high commodity prices. Fiscal Management of Scaled-Up Aid explores approaches to the sound fiscal management that will be required to ensure effective and sustainable use of these flows. With a medium-term perspective and efficient use of resources in mind, this paper addresses questions that shape fiscal policy response to scaled-up aid. Drawing on IMF Fiscal Affairs Department technical assistance to member countries, it outlines factors that should be taken into account in preparing an action plan for public financial management reform and proposes specific measures that will assist countries in strengthening fiscal institutions.

Keywords:
ISI; SI; aid volatility; country; revenue; aid predictability; revenue administration reform; PFM system; expenditure plan; Budget planning and preparation; Aid flows; Sub-Saharan Africa; Africa; Fiscal accounting and reporting
Cover Policy Papers
Update on the Financing of the Fund's Concessional Assistance and Debt Relief to Low-Income Member Countries
International Monetary Fund
This paper provides a semi-annual review of the status of financing for PRGF-ESF lending, HIPC and MDRI debt relief, and subsidization of emergency assistance to PRGF-eligible members. The last review was completed by the Executive Board on September 6, 2006.
Keywords:
PP; SDR; PRGF-HIPC Trust; MDRI-I Trust; SDR equivalent; MDRI debt relief; loan resource; PRGF loan; totaling SDR; subsidy resource; Debt relief; Emergency assistance; Loans; Concessional external borrowing; Extra-budgetary funds
Cover IMF Staff Country Reports
Republic of Mozambique: Fifth Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility, and Financing Assurances Review
International Monetary Fund
The Fifth Review Under the Three-Year Arrangement under the Poverty Reduction and Growth Facility of the Republic of Mozambique explains macroeconomic performance. Growth has picked up, led by strength in the construction sector and a recovery in agricultural production. The strategy to consolidate macroeconomic stability in the context of scaling-up of foreign aid should sustain strong growth. The Bank of Mozambique (BM) will continue to target base money and facilitate absorption of the additional foreign aid while a strengthening of Public Financial Management (PFM) systems ensure a better monitoring of expenditures.
Keywords:
ISCR; CR; group mission; government; Cahora Bassa dam; Hidroeletrica de Cahora Bassa; World Bank staff; petroleum sector; recourse financing; staff appraisal; Total expenditures; Global
Cover IMF Working Papers
Are Donor Countries Giving More or Less Aid?
Mr. Sanjeev Gupta
,
Ms. Catherine A Pattillo
, and
Ms. Smita Wagh
The volume of foreign aid has increased during the last four decades, albeit with interruptions in certain years. Over time, the major recipients have changed: while the share of aid to Asia has diminished since the 1980s, that destined for sub-Saharan Africa has grown. There is some evidence that, since the late 1990s, debt relief has assumed a larger share of the increased aid flows to sub-Saharan Africa. The share of technical cooperation-a component of aid that is viewed as being driven by donors-has risen. More recently, there has been an increased emphasis on providing budget support to recipient governments, especially in the form of debt relief. Donor harmonization, national ownership of development plans, and sound policies on the part of the recipients are crucial for the aid to be effective in reducing poverty.
Keywords:
WP; GNI; recipient country; net ODA flow; country; debt forgiveness