2022-05-26-IMF-FY2023-FY2025_Medium-Term_Budget_56页_1mb

IMF FY2023-FY2025 Medium-Term Budget Overview

Background

• Key Drivers: The budget framework supports post-pandemic recovery, addresses climate change and digital money challenges, and adapts to economic uncertainty from the war in Ukraine.
• Budget Discipline: After a decade of flat real budgets, the medium-term budget includes a phased augmentation averaging 2% real budget growth over FY23-25, returning to flat budgets from FY26.

Key Features

1. Budget Augmentation

   • Real Growth: Average 2% real budget increase during FY23-25 from FY22 levels, funded by prioritizing climate, digital money, and structural transformation work.
   • Responsible Growth: Balances crisis unwinding with budget discipline; FY23 real augmentation is $21.8 million (1.8% real increase).

2. Focus Areas

   • Climate Change: $8 million to integrate environmental risks into surveillance and lending.
   • Digital Money: $3.5 million to analyze central bank digital currencies and their impact on the international monetary system.
   • Macrofinancial Surveillance: $3.5 million to enhance tools for analyzing systemic risks.
   • Fragile States: $5.3 million to strengthen field presence and country support.

3. Hybrid Workforce Transition

   • Budget allocates resources for hybrid work infrastructure and staff training to maintain productivity post-pandemic.

4. New Mechanisms

   • Cloud Capital Equivalent (CCE): Introduced to transparently account for IT subscription costs within the capital budget.
   • Carryforward Limit: Reduced to 7% of the net administrative budget to avoid over-reliance on temporary funds.

Budget Details

• FY23 Administrative Budget: Approved at $1.295 billion (current prices), with a $21.8 million real increase ($1.235 billion in FY22 dollars).
• Capital Budget: $78 million, emphasizing lifecycle upgrades and IT modernization ($15 million for CCE).
• Externally Funded Spending: Limit increased by 4% to $230 million to support capacity development.

Risks and Mitigation

• Major Risks:

  • Program Demand: Increased member needs could strain resources; mitigation includes flexible resource reallocation.
  • Travel Uncertainty: Hybrid model may reduce in-person missions; budget allocates resources to ensure continuity.
  • Modernization Delays: IT projects' delays could impact deliverables; enhanced governance and oversight plans mitigate this.

• Broader Risk Factors: Inflation, geopolitical instability, and funding shortfalls are monitored through risk-based resource allocation.

Conclusion

The FY23-25 budget framework balances immediate crisis response with long-term strategic priorities. It ensures fiscal discipline while scaling up work on climate finance, digital currencies, and inclusive growth, reflecting an adaptive approach to the evolving global economic landscape under the IMF's mandate.