## Global Public Finance Partnership (GPFP) — Program Document ## Source details **Canonical URL:** [Global Public Finance Partnership (GPFP) — Program Document](https://www.imf.org/-/media/files/capacity-developement/partners/gpfp-program.pdf) ## Other formats - [Markdown version](/-/media/files/capacity-developement/partners/gpfp-program.pdf.md) - [Structured JSON version](/-/media/files/capacity-developement/partners/gpfp-program.pdf.json) --- ### Initiative overview and rationale - Initiative name: Global Public Finance Partnership (GPFP). - Purpose and scope: - New strategic and comprehensive capacity development (CD) initiative covering all areas of public finances in which the IMF provides CD support. - Integrates IMF “fiscal CD” operations: domestic revenue mobilization, public spending, and public financial management. - Focuses on Emerging Market and Developing Country (EMDC) members, with particular attention to low-income developing countries (LIDCs) and fragile and conflict-affected states (FCS). - Budget and timeline: - Funding target: USD 175–200 million (over five years). - Intended official launch: mid-2024. - Initial GPFP Steering Committee (SC) meeting planned for January 2024; inaugural SC meeting envisaged for late January 2024. - Strategic approach: - Comprehensive, well-prioritized, flexible, country-centered, multi-year CD engagements aligned with IMF surveillance and lending. - Integrates cross-cutting priorities: climate change, gender & inclusion, and GovTech; single country group priority: FCS. - Leverages existing IMF CD vehicles (RMTF, MNRW, TADAT, bilateral CD vehicles) and HQ–RCDC coordination. - Motivation: - Rising demand for public finance CD driven by massive economic shocks and global developments (e.g., climate change, supply chain disruptions). - Aim to strengthen fiscal policy design, revenue mobilization, spending efficiency, fiscal and debt sustainability, and fiscal risk management. ### GPFP design: components, modules, and diagnostic tools - Two main components: Revenue Component and Spending Component. - Modular architecture (both Components organized around 3 building blocks): - Country-centered CD (Modules I–II): core revenue mobilization, spending, PFM and macro-fiscal policy areas. - Learning (Module III): training, conferences, webinars, peer-learning events; emphasis on multi-country training platforms. - Diagnostic tools and analyses (Module IV and Module V in Revenue): assessment tools, applied research, and analytical work. - Revenue Component modules (objectives preserved verbatim): - I. Tax Policy — Improve Tax Policy Design; Strengthen Policy Monitoring, Evaluation, and Institution Building. - II. Revenue Administration — Strengthen Management and Governance Arrangements; Strengthen Core Tax Administration; Improve Customs Administration. - III. Training and Peer Learning — Develop Capacity; Provide Peer Learning Opportunities. - IV. Fiscal Tools, Research and Analytical Work — Develop and Apply Fiscal Tools; Publish Research and Analytical Work. - V. TADAT — TADAT Assessments; Training and Tools; Design, Review and Monitoring. - Spending Component modules (objectives summarized): - I. Spending Policy — Strengthen Expenditure Policy Formulation and Design; Strengthen Policy Evaluation and Institution Building. - II. Managing Public Finances — Build Fiscal Institutions and Frameworks; Strengthen Budget Credibility; Improve Fiscal Transparency and Reporting. - III. Training and Peer Learning. - IV. Fiscal and Macroeconomic Tools, Research and Analytical Work. - Diagnostic and analytical tools referenced: - Medium-Term Revenue Strategy (MTRS), RA-Gap, ISORA/ISOCA, WoRLD, TADAT, PIMA, CPIMA, PFMx, RFAx, FITAS. ### Key technical emphases and thematic workstreams - Revenue mobilization: - Tax policy reform across personal and corporate taxes, VAT, excises, import tariffs, environmental and property taxation, natural resource taxation, international tax issues (including two-pillar international tax package), and targeted support for LIDCs and small states. - Revenue administration modernization: TADAT integration; RA-Gap deployment; compliance risk management; GovTech strategies for IT/digital transformation and analytics. - Customs administration: recognition that in LICs 37 percent of tax revenues are collected through customs operations; in EMEs 28 percent; CD to strengthen customs operations and tax–customs data exchange. - Tax legal frameworks: benchmarking against international practices; training and peer learning to increase tax certainty and minimize avoidance. - Spending and PFM: - Prioritizing spending to achieve SDGs, protect vulnerable groups, and manage long-term pressures (pensions, health). - Strengthening budgetary frameworks: medium-term fiscal strategies, budget formulation, execution, monitoring, fiscal reporting, Treasury Single Account (TSA) use, arrears recording, and public sector balance sheet reporting. - Public Investment Management (PIM): PIMA and CPIMA diagnostics; IMF analytical finding that, on average, countries lose about a third of the value of their investments to inefficiencies in public investment management processes. - Climate and gender lenses applied to spending (green PFM, gender budgeting) and GovTech-enabled service delivery (e.g., targeted social payments). ### Programmatic Country-Centered Approach (PCCA) - Definition and purpose: - PCCA: comprehensive, medium-term, intensive IMF CD engagement supporting transformational fiscal reforms; demand-driven, country-tailored, country-owned. - Tailors CD to political economy, absorptive capacity, and reform pacing. - Delivery features: - Bespoke, integrated, medium-term programmatic workplans with timelines, objectives, outcomes, milestones, and resource commitments from GPFP and counterparts. - Flexible delivery modalities: blended (in-country and virtual), blended learning (online and in-person), peer-to-peer learning. - Pre-engagement scoping visits; continual assessment and workplan revisions; governance structures (oversight team and technical team) to foster country ownership. - Governance priorities: - Strengthen cooperation with other CD providers; align PCCAs with existing support strategies; embed oversight and accountability mechanisms. ### Eligibility, prioritization, and targeting - Primary focus: developing countries, particularly LIDCs; priority for LIDCs and FCS in line with the IMF’s FCS Strategy; special attention to small states with low capacity. - Beneficiary groups also include LMIC, EMEs, and a small number of UMIC; limited activities in advanced economies when global lessons apply. - Prioritization balances bottom-up (country requests) and top-down (IMF institutional priorities, partner preferences, resource constraints). - Prioritization criteria consider existence of partner-funded CD programs, urgency to mobilize revenue or manage spending, authorities’ commitment documented in country development strategies, and implementation capacity. - Monitoring and refinement will leverage IMF assessment tools (TADAT, PIMA, ISORA) and the IMF’s Results Based Management (RBM) system. ### Cooperation with external stakeholders and delivery modalities - Governance and partnership: - Single Steering Committee (SC) comprising contributing partners and IMF staff; SC to meet twice a year; decisions by consensus; chair rotates annually among partners. - GPFP Secretariat provided by IMF personnel (up to 5 IMF staff: head and support for data analysis, communications, budget, administration). - Strong operational cooperation with development partners, World Bank, other IFIs and initiatives (e.g., Platform for Collaboration on Tax, VITARA). - Delivery modalities: - Blended CD delivery model: HQ-led missions, shorter staff visits, in-country/regional resident advisors, LTX placements, short-term and peripatetic expert visits, training, workshops, conferences, webinars, peer-to-peer learning. - Emphasis on field-based CD expansion and blended virtual/in-person modalities tailored for fragility, capacity, and connectivity constraints. - Knowledge and learning: - Use of IMF Regional Training Centers (RTCs), IMF Revenue Portal, VITARA, PFMx, RFAx, and multi-country training frameworks. ### Governance, accountability, and results measurement - Strategic governance: - Single SC for strategic guidance; annual multi-year workplans proposed to SC for review and endorsement. - Project selection is demand-driven; single integrated country workplan across components and modules. - Results-based management: - Alignment with IMF Results-Based Management (RBM) framework. - Program-level strategic results framework with strategic indicators for Revenue and Spending components and cross-cutting indicators for climate, gender/inclusion, and GovTech. - Project-level logical frameworks (log frames) aligned with GPFP strategic results framework and IMF CDMAP; inputs, country objectives/outcomes, verifiable indicators, baselines and milestones. - Strategic indicators (selected): - Revenue component: Average tax-to-GDP ratio trends up; percentage of countries with increased tax-to-GDP ratio; tax effort ratio improves (WoRLD). - Spending component: Average additional spending needs to make progress along the SDGs decline (SDG costing tools); percentage of countries with declining gap between spending and spending needs (SDG costing tools); government improves budget credibility (gap between expenditure outturn and planned expenditure narrows). - Cross-cutting: Percentage of countries integrating climate/gender/GovTech considerations into revenue or spending strategies; percentage of countries with strategic/operational action plans for information systems and digital solutions. - Operational/project indicators (selected examples preserved verbatim): - RM1.1: Countries enact new laws (%) — Source: Project management information. - RM5.1: Number of first and repeat TADAT assessments in regions with historically less coverage — Source: Project management information. - SM2.7: Average score of countries on annual financial statements completeness and timeliness improves — Source: PEFA, indicator 29. - R/S3.1: Participants demonstrate that they have effectively acquired knowledge and skills at the Absolute Learning level as measured by pre- and post-course test (%) — Source: Project management information. ### TADAT operations and footprint - TADAT provides an objective health assessment across 9 key performance outcome areas (POAs). - A total of 170 TADAT assessments had been carried out by September 2023, covering national and subnational tax administrations across all geographic regions. - TADAT governance: - TADAT Secretariat (T-SEC) maintained under GPFP SC oversight; approved structure: Head, up to 3 technical experts, a project coordinator, and an administrative coordinator; supplemented by short-term experts as needed. - T-SEC supported by a T-TAG chaired by the Head of T-SEC with technical representatives from partners, regional tax organizations, and up to 3 GPFP SC endorsed academic members. - TADAT operational principles: demand-driven formal country request assessments, assessor accreditation and quality assurance, training and outreach, periodic framework review (at least every 5 years). ### Budget, resource allocation, and illustrative financial plan - Funding target: USD 175–200 million for the initial 5-year period. - Component-level orientation: - Approximately 2/3 for Revenue Component and approximately 1/3 for Spending Component initially. - IMF trust fund management fee: 7 percent (applied to actual expenses only). - IMF will charge project-related costs on an actual cost basis; IMF staff time charged on a standard cost basis per SFA framework. - Illustrative budget (USD ‘000) — FY24 through FY29 and Total (numbers preserved verbatim): - Revenue Modules I and II: 3,427; 17,105; 17,794; 18,511; 19,256; 20,029; Total 96,122 - Revenue Modules III and IV: 950; 1,600; 1,950; 1,950; 1,950; 1,950; Total 10,350 - Revenue Modules V: 0; 2,500; 2,500; 2,500; 2,500; 2,500; Total 12,500 - Spending Modules I and II: 650; 5,000; 9,000; 11,600; 11,648; 11,650; Total 49,548 - Spending Modules III and IV: 0; 750; 2,000; 2,100; 2,100; 2,100; Total 9,050 - Sub-total of Modules: 5,027; 26,955; 33,244; 36,661; 37,454; 38,229; Total 177,570 - Program Management: 226; 1,425; 1,750; 1,935; 1,980; 2,030; Total 9,346 - Sub-Total: 5,253; 28,380; 34,994; 38,596; 39,434; 40,259; Total 186,916 - Trust Fund Management Fee: 368; 1,987; 2,450; 2,702; 2,760; 2,818; Total 13,084 - TOTAL: 5,621; 30,367; 37,444; 41,298; 42,194; 43,077; Total 200,000 - Explanatory cost notes: - Revenue Component estimate: USD 119 million (based on about USD 110 million historical spending of legacy funds over 5 years plus USD 8–9 million to expand customs and EMEs). - Spending Component estimate: USD 59 million (considering growing demand, transition of bilateral projects, and MNRW spending components). - T-SEC costs embedded in Revenue Module V estimates; GPFP Secretariat costs based on IMF standard salaries and operating expenses. - Account and financial structure: - All partner contributions to be deposited into a dedicated GPFP multi-partner subaccount under the IMF’s SFA Instrument; GPFP subaccount established in October 2023. - Three financial operating units: one for Revenue Component, one for Spending Component, and an initiative-level operating unit for GPFP-wide costs. - Contributions governed by Letters of Understanding (LOUs) and subject to SFA Instrument terms. ### Transition, legacy funds, and timelines - Transition plan: - Legacy thematic funds (RMTF, MNRW, TADAT) to be phased out; some projects to be rolled into GPFP. - TADAT anticipated to have sufficient funding through April 2024 (end of FY24). - MNRW anticipated to have funds to extend activities into FY25 (April 30, 2025) or until funds exhausted. - RMTF expected to expend all funds before April 2024. - Continuity measures: - SC meeting in January 2024 to endorse a limited inaugural workplan including legacy projects requiring continued financing, urgent new requests, and start-up costs (e.g., Secretariat). - Continuity of LTX contracts prioritized; internal contracting time minimum of eight weeks. - Legacy fund final reports to legacy SCs no later than 12 months after activities conclude. - Phasing approach: - For the first two years, bilateral funding may continue in parallel; objective to eventually fund most fiscal CD through the GPFP. ### Governance, reporting, and independent evaluation - Steering Committee (SC): - Single SC for strategic guidance, consensus decision-making, chaired annually by a partner representative (rotating), meetings twice a year (in-person once a year intended). - SC to review and endorse annual multi-year workplans and budgets; TADAT workplan and budget also reviewed by SC. - Secretariat and program management: - GPFP Secretariat staffed by up to 5 IMF personnel; responsible for SC support, annual workplan and budget proposals, GPFP branding, partner coordination, progress reporting, and external representation. - Reporting and transparency: - Annual and mid-year reporting to SC (narrative and financial updates at GPFP and Component Fund levels). - Partners Connect to be used as central repository for partner monitoring of activities and project-level reporting. - Operations and subaccount transactions subject to annual audits. - Independent evaluation: - External evaluation planned preferably no later than 40 months after commencement of activities (expected IMF FY2028), subject to discussion with GPFP partners and contingent on satisfactory execution of CD activities; evaluation to assess effectiveness and sustainability and inform remainder of 5‑year phase. ### Risks and mitigations (selected) - Program-level risks and mitigations: - PL1 Risk: External shocks impact government revenue — Mitigation: Coordinate with IMF country teams to analyze emerging fiscal risks and propose fiscal policy options. - PL2 Risk: Government revenue measures adversely impact the tax ratio — Mitigation: Monitor measures and propose reforms to boost the tax ratio. - PL3 Risk: Macroeconomic shocks affect allocation of government expenditures — Mitigation: Monitor macro developments with country teams; discuss contingency plans. - PL4 Risk: Exogenous shocks destabilize fiscal position and reform program — Mitigation: Review and react flexibly to CD delivery. - Cross-cutting and operational risks: - Risk: Delay or low demand for CD due to limited MoF commitment — Mitigation: Integrate CD activities within broader reform agendas and IMF surveillance to build momentum. - Risk: Lack of political support for cross-cutting reforms — Mitigation: Leverage international fora and link with IMF surveillance to highlight political priorities. - Risk: Implementation impeded by low capacity, frequent staff rotation, or instability — Mitigations: Use FAD tools to assess strategies, coordinate with development partners on political economy, invest in leadership training, and monitor milestones closely. - Risk: Overlap with other development partners reduces CD effectiveness — Mitigation: Coordinate reforms and map partner CD landscape country-by-country. - TADAT-specific risk: Findings not used to inform reforms — Mitigation: T-SEC liaises with authorities and partners to embed TADAT findings into reform planning, followed by Module II CD where needed. *Source: International Monetary Fund — Global Public Finance Partnership—Program Document.* ### Foreword................................................................................................................ ### gpfp-program - Foreword ### Foreword — Managing Director’s opening remarks - The Managing Director’s Global Policy Agenda (GPA) presented in October 2023 discusses challenges related to building shared prosperity and collective resilience. - The International Monetary Fund (IMF) is positioned as a trusted advisor, provider of financial support, and platform for cooperation; capacity development (CD) is a key pillar integrated with surveillance and lending. - The Global Public Finance Partnership (GPFP) is presented as a cornerstone of the IMF’s CD agenda and an invitation to partners to join the IMF in building shared prosperity and collective resilience. - GPFP scope: - Covers all areas of public finances in which the IMF provides CD support. - Focuses on helping Emerging Market and Developing Country (EMDC) members, with particular attention to low-income developing countries (LIDCs) and fragile and conflict-affected states (FCS). - Aims to build strong fiscal policy and management institutions that are fit for purpose to address future challenges. - GPFP thematic focus: - Designing and implementing strong revenue mobilization policies and well-functioning revenue administrations. - Policies focused on “spending well” and sound public financial management. - Integrates cross-cutting priority themes: climate change, gender & inclusion, and GovTech. - Expected institutional benefits: - Consolidates the IMF’s CD operations in public finance. - Strengthens CD support to EMDC members and cooperation with external stakeholders and development partners, including in-country cooperation. ### Executive Summary — Initiative overview and rationale - Initiative name: Global Public Finance Partnership (GPFP). - GPFP purpose: - New strategic and comprehensive capacity development (CD) initiative covering all areas of public finances in which the IMF provides CD support. - Integrates the IMF’s “fiscal CD” operations: domestic revenue mobilization, public spending, and public financial management. - Budget and timeline: - Targets a budget of US$175–200 million (over five years). - To be launched officially in mid-2024, with an initial GPFP Steering Committee (SC) meeting planned for January 2024. - Motivation and context: - Rising and across-the-board increase in demand for CD support on public finances driven by massive economic shocks and adverse global developments (e.g., climate change, supply chain disruptions). - Countries need strengthened capacities to design sound fiscal policies and manage public finances, prioritize public services and investments, determine taxation and borrowing choices, maintain fiscal and debt sustainability, and manage fiscal risks. - Good fiscal policies and well-governed fiscal institutions are key pillars for countries, particularly in turbulent times. - GPFP approach and features: - Comprehensive, well-prioritized, and flexible CD delivery aligned with country CD support needs. - Reinforces linkages, synergies, and trade-offs across fiscal policy and management areas; fosters prioritization and consistency in supporting government reforms related to public finances. - Integrates three thematic priorities—climate change, gender gaps/inclusion, GovTech—and a single country group priority (fragile and conflict affected states, FCS) across all GPFP workstreams. - Focuses on multi-year, country-centered CD engagements considering political economy, absorptive capacity, and appropriate pace of fiscal reforms. - Facilitates flexible CD delivery modalities (e.g., “blending” virtual and in-person delivery), expands multi-year field-based CD support, and strengthens partnerships with stakeholders and development partners. - Employs innovative fiscal diagnostic frameworks and analytical tools, including those addressing climate, gender, inclusion, and GovTech, to support country-tailored CD on fiscal issues. - Targeting and prioritization: - Focus on the IMF’s poorest and most vulnerable member countries while seeking geographic balance. - Targets developing countries, including low income, lower-middle income and emerging economies, and a small number of upper middle-income countries. - Priority consideration given to fragile and conflict affected states (FCS) in line with the IMF’s FCS Strategy. - Limited activities in advanced economies where lessons learned can benefit others. - Integration and alignment: - Anchored by the IMF’s overall CD Strategy and the Fiscal Affairs Department’s (FAD) CD Strategy, including FAD’s medium-term country-centered approach. - Brings “under one roof” the core goals of public finances: high-quality domestic revenue mobilization, efficient and effective government spending, and public financial management. - Aligns with the international development agenda and initiatives such as the Addis Ababa Action Agenda (AAA), the Addis Tax Initiative (ATI), and the European Union’s (EU) Collect More—Spend Better initiative. - Leveraging existing IMF CD vehicles: - Integrates and builds on existing CD delivery vehicles: Revenue Mobilization Thematic Fund (RMTF), Managing Natural Resource Wealth Thematic Fund (MNRW), Tax Administration Diagnostic Assessment Tool (TADAT), and several bilateral CD vehicles. - Incorporates IMF CD on public spending into a unified structure. - Expected stakeholder benefits: - Offers advantages for IMF member countries by catering to their CD needs. - Fosters synergies across IMF CD workstreams and with development partners. - Increases leveraging and targeting of available financial resources to benefit CD recipients. *IMF | Global Public Finance Partnership—Program Document* ### Box 1. The GPFP—Main Benefits for Key Stakeholders ### Box 1. The GPFP—Main Benefits for Key Stakeholders ### CD Recipients — Improves CD delivery in support of inclusive growth and development - Provides more impactful CD support that is focused on strategic reforms and medium-term priorities. - Strengthens the strategic dialogue, comprehensive prioritization, and medium-term orientation of CD support across the full spectrum of public finance issues. - Brings about a comprehensive focus on strengthening institutional and human capacities related to fiscal policy making and management, in the context of supporting medium-term planning for priority CD needs. - Helps to integrate key overarching areas (climate, gender/inclusion, GovTech) that feature in the CD support received across all areas of public finances. - Offers synergies and contributes to stronger overall cooperation and coordination, including with other development partners. - Boosts overall CD support to recipients, particularly FCSs and Emerging Market Economies (EMEs). - FCS benefit from more hands-on CD support in all areas of public finance. - EMEs benefit from an increased engagement with the IMF and other development partners, highlighting the crucial global role that EMEs play, including on climate, gender/inclusion and GovTech. ### Development Partners — Strengthens the strategic engagement with the IMF on CD in public finance - Creates a “one-stop-shop” for IMF CD engagements in the area of public finances that facilitates interactions with the IMF. - As GPFP Steering Committee Members, development partners contribute to raising the profile of public finance issues, and provide governance, strategic guidance, and direct inputs into the GPFP’s comprehensive CD work program. - Facilitates own engagement with partner countries on key issues of bilateral support in the area of public finances. - Strengthens the strategic dialogue and cooperation with the IMF on CD on key cross-cutting issues (e.g., climate, gender/inclusion, and GovTech). - Allows own financial contributions to IMF CD support to go further in an efficient manner, including by leveraging these contributions with the goal of strengthening CD outcomes through greater impact and broader reach. - Reduces the governance and administrative burdens that currently come from engaging with the IMF in a fragmented manner on CD issues in the area of public finance. - Increases own visibility by being closely associated with a global CD brand—the GPFP. ### IMF — Facilitates the use of available CD resources and advances implementation of the IMF’s CD Strategy - Creates a comprehensive CD vehicle that helps implement the IMF’s CD Strategy for public finances, including the strategy’s programmatic country-centered approach (PCCA). - Enhances the efficiency of CD support on public finances through its “under-one-roof” approach that sharpens the focus on links and interdependencies in the fiscal area and helps governments address major cross-cutting issues. - Strengthens the strategic CD dialogue and cooperation with the IMF’s development partners and promotes the engagement with these partners across the full spectrum of public finances. - Fosters internal synergies across all areas of IMF CD on public finances, as well as synergies between IMF CD and the IMF surveillance and lending operations. - Reduces the administrative burdens that currently come from having a fragmented CD financing and delivery landscape that includes a relatively large number of CD vehicles that need to be tended to. ### GPFP Overview — Objectives and thematic scope - Focus: holistic and integrated approach across the whole spectrum of public finances, fostering good policies and strong management; core pillars are revenue mobilization and public spending. - Objectives: - Support strong domestic revenue mobilization. - Support sound spending policies and public financial management (PFM). - Help countries build sustainable public finances by assisting design and implementation of sound fiscal policies and management practices. - Rationale: - Tax and spending policies are interdependent and should be viewed together in coherent policymaking and management to facilitate inclusive economic growth, reduce inequality and poverty, and achieve social and development goals. - CD is essential for building institutional strengths and capacities and strengthening policy consistency. - Analytical approach: - Understanding linkages (e.g., expenditure planning and revenue forecasting, budget preparation and medium-term budgeting) strengthens fiscal policy making and fiscal management. ### Topics and Themes — Areas supported by GPFP - Strong revenue mobilization policies: - Design and implementation of main taxes (e.g., income taxes, value-added or other consumption taxes, and taxes on natural resources or fossil fuels), customs duties, and other levies; balancing revenue, equity, and efficiency objectives. - A well-functioning revenue administration: - Implementing effective tax and customs policies and achieving revenue goals (including taxes, customs duties, social security contributions); building trust between government and taxpayers. - Policies focused on “spending well”: - Assessing costs, benefits, and affordability of public infrastructure and public services (education, health, other social spending) to progress toward the SDGs; guiding spending by adequacy, efficiency, and sustainability. - Sound public financial management: - Strengthening institutions to assess interplay between fiscal policies, macroeconomic developments, fiscal risks, and debt sustainability; allocating resources to priorities and ensuring efficient, effective, and transparent use of public resources. - Use of diagnostic frameworks and analytical tools: - Employ innovative diagnostics to benchmark against good international practices, establish baselines, develop reform plans, and monitor reform progress. ### Cross-Cutting Priorities and Country Priorities - IMF-wide cross-cutting priorities integrated into GPFP: climate change, gender/inclusion, GovTech. - Climate: integrate climate mitigation, adaptation, energy transition, green PFM, green public investments, carbon taxation, and CPIMA assessments into fiscal policy design and institutional building. - Gender/Inclusion: apply a gender lens to tax and budgetary systems; use gender budgeting to understand how policies and funding decisions influence gender equality; leverage fiscal policy and spending on education, infrastructure, and health to influence inequality and social mobility. - GovTech: accelerate GovTech solutions in PFM to maintain operational continuity in revenue and spending agencies; enable effective fiscal reforms. - Fragile and conflict-affected states (FCS): - Use country engagement strategies (CES) to identify drivers of fragility and conflict, tailor IMF engagement, integrate surveillance, CD, and lending, inform program design and conditionality, and coordinate with partners. - FCS strategy foresees an expanded IMF field presence in CD to intensify institution-building tailored to local absorptive capacity. ### Structure — “Under one roof” design and components - Two main components: - “Revenue” component: - Focus on CD to mobilize domestic revenues through tax policies and revenue administration measures and institutions. - Builds on legacy thematic funds, including RMTF, TADAT, and revenue components of MNRW, and complements customs administration workstreams. - “Spending” component: - Brings together CD workstreams related to managing public finances (spending-related and macro-fiscal policies, and all PFM areas) to strengthen value for money from public spending and ensure transparent and accountable management of public resources. - Benefits of the envisaged structure: - Integrates IMF revenue and expenditure workstreams for the benefit of CD recipient countries while retaining attention to detail from legacy thematic funds. - Anchored at IMF Headquarters to support strategic and on-the-ground coordination with regional CD centers (RCDCs) and facilitate cooperation with stakeholders and development partners. - Consolidates several existing sources of CD financing to offer efficiencies and exploit synergies in CD planning, coordination, and delivery. - Strengthens the IMF’s brand and recognition as a global leader in providing integrated fiscal CD support and elevates collaboration with stakeholders and development partners. *Source: IMF, Global Public Finance Partnership—Program Document, Box 1.* ### 1.3 Eligibility and Prioritization For GPFP CD Support ### 1.3 Eligibility and Prioritization For GPFP CD Support ### Eligibility: country coverage and priorities - The GPFP will focus on developing countries, particularly low-income developing countries (LIDCs). - Priority consideration for CD support will be given to LIDCs and FCS (in line with the IMF’s FCS Strategy). - The GPFP will pay particular attention to the CD needs of small states with low capacity. - Apart from LIDCs and FCS, the GPFP will also benefit lower-middle income countries (LMIC), emerging economies (EMEs), and a small number of upper-middle income countries (UMIC), and, occasionally, activities involving high-income/advanced economies where the activity provides global lessons benefiting developing countries. - Footnote detail: Almost half of all FCS are in Sub-Saharan Africa. - Footnote detail: Small states face unique vulnerabilities, including challenges associated with diseconomies of scale and capacity constraints that leave them with minimal diversification against external shocks, including climate change. - Footnote detail: The use of the TADAT framework will continue to be supported across all economies. ### Prioritization approach and balance - The prioritization approach will balance “bottom-up” and “top-down” priorities: - Bottom-up: specific interests and requests of country authorities for different types of IMF CD support. - Top-down: IMF institutional priorities (including support for FCS and LIDCs), priorities of IMF area departments, preferences of GPFP partners, and resource constraints. - In line with demand, the GPFP will: - Ensure the poorest and most vulnerable countries requesting CD are prioritized and well supported. - Seek to balance provision of CD support across geographical regions. - CD interventions will draw on the full range of IMF CD products and services and be tailored to individual country needs. - Countries with low demand for CD support may still benefit from IMF CD via peer-to-peer learning and knowledge sharing offered to groups of countries with common characteristics and needs. ### Prioritization criteria and other considerations - The prioritization of GPFP CD support will take into account whether: - A major partner-funded CD program already exists and to what extent a country can benefit from GPFP support in the context of a partner-funded economic reform program. - There is an urgent need to mobilize revenue or balance and manage spending. - There is a well-defined commitment in a given country to advancing public finance reforms, and to what extent this is prioritized and documented in a country’s own development strategies. - There is sufficient capacity and commitment to implement fiscal reforms with good prospects to complete a given CD program successfully. ### Data, monitoring, and continuous refinement - The GPFP’s initial approach to CD prioritization will be refined over the duration of the vehicle using data from several sources, including IMF assessment tools (e.g., TADAT, PIMA, ISORA) and the IMF’s Results Based Management (RBM) system. - Close monitoring of results from CD interventions will enable continuous learning and refinement of CD products and services for the benefit of each member country. --- ### 1.4 Programmatic Country-Centered Approach (PCCA) — design and delivery - The PCCA describes a comprehensive, medium-term, and intensive IMF CD engagement that supports transformational fiscal reforms. - PCCAs intensify IMF CD support while tailoring engagements to each country’s situation and absorption capacity. - CD support under PCCAs: - Is delivered following a bespoke, integrated, and medium-term programmatic approach. - Considers countries’ political economy and absorption capacity. - Aligns CD planning and delivery with IMF surveillance and lending operations. - PCCAs focus on sustaining traction throughout reform undertakings and recognize that fiscal reforms are often complex and frequently require adjustments and recalibration. - GPFP CD support under PCCAs will include: - Flexible workplans that can quickly adapt to emerging demands. - Blended modalities of delivery (in-country and virtual engagements). - Flexible learning opportunities (online and in-person training, peer-to-peer learning). ### PCCA governance, ownership, and workplan features - Strong and sustained government ownership and flexible CD support are key elements of successful reform, particularly in low-capacity environments. - PCCA pre-engagement includes initial scoping or re-scoping visits to design a CD workplan with country authorities. - The workplan will be agreed with country authorities and documented in project proposals specifying timelines, objectives, outcomes, and milestones. - The workplan will include resource commitments from the GPFP and counterpart staffing, facilities, and other project resources from the country. - The workplan will be continually assessed and documented in progress reports and/or project revisions to factor in changing risks (political economy, management commitment, technical and resource absorption capacity). - Changes in government leadership may require a re-commitment from country authorities to the agreed workplan. ### PCCA defining elements (overview) - A PCCA focuses on helping authorities design and deliver transformational fiscal policy & management reforms and is: - Demand-driven, country-tailored, and country-owned. - Based on an integrated, well-defined, and well-sequenced CD plan focused on achieving authorities’ reform outcomes. - Delivered in cooperation with key stakeholders and embedded in governance/support structures to maximize chances of success. - Three key defining elements: - Comprehensive CD Design: combining inputs from multiple CD workstreams and stakeholders to design an integrated program based on a comprehensive fiscal perspective. - Robust, Flexible, and Agile CD Delivery: integrated, well-defined, well-sequenced delivery using a full range of interventions, modalities, and resources. - Supportive CD Governance: anchored in governance and support processes/structures on both IMF and authorities’ sides to facilitate effective delivery and sustainable outcomes. - Two governance priorities to strengthen coordination and ownership: - Strengthening cooperation with other CD providers by aligning PCCAs with existing support strategies and complementary actions of other providers. - Fostering country ownership via active involvement of authorities in all PCCA processes and standing structures (e.g., an ‘oversight team’ and a ‘technical team’), with transparent information and accountability across all phases. --- ### 1.5 Cooperation with external stakeholders - The GPFP will foster close cooperation with external stakeholders and streamline funding and cooperation mechanisms. - GPFP CD will be kept aligned with beneficiary country priorities, attuned to external stakeholders and partners, and integrated with IMF surveillance and lending. - Cooperation aspects: - Strategic planning and governance via the GPFP’s steering committee. - Stronger operational cooperation with development partners, focused primarily at the country level (“on the ground”) to build well-coordinated CD support for fiscal reform agendas and implementation plans. - The GPFP will act as a catalyst for strengthening global partnerships, including with other IFIs and international bodies/initiatives. - Examples in coordination experience include the Platform for Collaboration on Tax (PCT) and the Virtual Training to Advance Revenue Administration (VITARA) project (coordinated with OECD, CIAT and IOTA). - The IMF supports the PEFA framework alongside many international partners; the TADAT Secretariat maintains a technical working group that includes the World Bank and other partners. - GPFP Secretariat will maintain close working relationships with the World Bank and other partners to enhance cooperation. - Cooperation benefits from IMF integration of its three core mandates (surveillance, lending, CD), anchored in each country strategy (Country Strategy Notes and, for each FCS, Country Engagement Strategy) to ensure consistency across IMF operations. - The GPFP will leverage expertise in other IMF departments (e.g., legal, information technology, statistics) and CD supported by other funding vehicles, most notably the RCDCs. - GPFP will leverage RCDC CD to help country authorities implement strategic advice and workplans through a hands-on approach; RCDC work plans are aligned with IMF HQ CD plans and HQ provides direct supervision oversight of RCDC resident advisors. - Cooperation will be facilitated by the IMF’s Results-Based Management (RBM) framework and internal quality control mechanisms: - The GPFP will be integral to the IMF’s overall CD work program consolidating CD operations independent of funding source. - The RBM framework provides a common platform for reporting on CD delivery with standardized objectives, outcomes, and indicators to facilitate internal monitoring and quality control. - IMF CD delivery relies on experienced and skilled staff and technical subject-matter experts (LTX and STX) hired directly by the IMF and on HQ-based supervision of on-the-ground experts to ensure consistency. --- ### 1.6 Modalities of CD delivery - The GPFP will apply a blended CD delivery model using a variety of modalities, deciding the optimal delivery approach for individual country-centered projects. - Delivery will use a flexible combination of remote, in-person, and blended engagements reflecting the phase and purpose of the engagement and available resources. - CD modalities include: - HQ-led missions and shorter staff visits - In-country or regional resident advisors - Short-term expert visits - Peripatetic expert visits - Training; workshops; conferences/seminars/webinars - Peer-to-peer learning - CD will also include analytical and developmental work to further develop CD diagnostic frameworks and tools to support delivery. - CD will be supported through strong project management including quality assurance of delivery and monitoring of overall progress against expected results. --- ### Components and modular structure (overview) - The GPFP has a two-component structure (Revenue Component and Spending Component) with a modular approach aligned with the IMF’s RBM framework. - Modules in both Components are organized around 3 building blocks: - Country-centered CD — Modules I-II in both Components: core revenue mobilization, spending, public financial management and macro-fiscal policy areas. - Learning (human capital development through learning) — Module III in both Components and integrated into Module V in the Revenue Component: training, conferences, webinars, peer-learning events to enhance human capacities and support absorption of CD; emphasis on multi-country training platforms. - Diagnostic tools and analyses — Module IV in both Components and Module V in the Revenue Component: enhancing and disseminating assessment tools and applied research/analytical work to benefit CD. *Source: IMF — Global Public Finance Partnership (GPFP) program document.* ### Box 5. Integrating The Lessons Learned from External Evaluations ### Box 5. Integrating The Lessons Learned from External Evaluations ### Relevance - The PCCA will be more strongly integrated and documented, including communicating more clearly the connection to the IMF country strategies; country ownership; and a continual assessment of risk factors and mitigations. - Cross-cutting priorities (climate, gender/inclusion, and GovTech) will continue to be integrated into CD delivery; this also goes for related analytical work and the development and deployment of tools in cross-cutting priorities. ### Effectiveness - The holistic nature of the GPFP across all areas of public finance, will help to better connect diagnostic tools (e.g., TADAT and PIMA) to the development of reform plans in core CD areas (e.g., revenue administration and PFM) in beneficiary countries. - Proactive identification of CD needs (including by strengthening further the close integration of CD with surveillance and lending) and close cooperation with development partners will bolster the geographic footprint of the initiative. - For more effective regional presence and on-the-ground cooperation, the field-based CD delivery will be expanded. ### Impact & Sustainability - Absorption capacities will be assessed frequently, and modalities deployed to help embed and sustain reforms (e.g., supplementing in-person CD with online learning such as VITARA, Public Financial Management (PFMx), Revenue Forecasting and Analysis (RFAx); and utilizing peer learning, training guidance notes, and train-the-trainer techniques). - The alignment of CD with IMF country strategies and the overall macro-fiscal impact of reform measures will be more clearly documented, and the RBM framework will also be used in the CD dialogue to strengthen country accountability and ownership, as needed. ### Coherence - Through a strengthened PCCA, CD that helps countries meet their reform goals while ensuring complementary rather than redundant CD delivered by other partners will be clearly identified and documented. - The landscape of CD delivery by development partners will be more clearly mapped and documented, and lessons learned from good cooperation will be shared to improve overall collaboration in country-level CD. - Opportunities to expand partnerships with other IFIs and development partners will be explored further, including in the context of frameworks like PEFA, TADAT and VITARA. ### Efficiency - The modalities of CD delivery will be expanded and tailored for each country, taking into consideration multiple factors including fragility, capacity level, internet connectivity, etc. In this context, blended delivery (in-person and virtual) will be exploited, and other modalities will continue to be tested and expanded (e.g., multi-country topical Long-Term advisers (LTX), peripatetic experts, ongoing communication, etc.). - The RBM framework is being reviewed, and guidance for project managers will be improved to facilitate more consistent and improved monitoring. - Reporting to the SC will be strengthened, including through on-demand technology solutions. *Source: IMF — Global Public Finance Partnership—Program Document (Box 5).* ### 2.1 Revenue Component ### 2.1 Revenue Component ### Context - The GPFP’s component on “Public Revenue” (revenue mobilization, RM) builds on the IMF’s CD experience to assist member countries in mobilizing domestic revenue as a prerequisite to weather shocks and advance economic and social development agendas, including achieving the SDGs and supporting the ATI. - Cross-cutting priority themes—climate change, gender/inclusion, and GovTech—will be integrated into revenue component modules where applicable. International taxation and other themes will also be included. - The GPFP adopts the IMF’s country-centered approach, coordinating revenue and spending components to support a holistic approach to fiscal policy and public finance institution building in beneficiary countries, in collaboration with development partners. - Strengthening RM strategies and management is urgent due to pandemic-induced global shocks since 2020, which reduced fiscal space through higher spending needs, lower domestic revenues, and higher debt. The October 2022 IMF Fiscal Monitor noted that larger deficits in LIDCs reflect higher spending levels relative to 2019, whereas in EMEs they are due to stagnating revenues. ### A. Scope and CD Themes - Objective: build effective tax systems (policy, administration, legal framework) with a medium-term approach that considers fairness and inclusiveness and aligns with countries’ spending needs. - Use of Medium-Term Revenue Strategy (MTRS) framework where appropriate to embed whole-of-government resource mobilization strategies. - Revenue component provides technical assistance, targeted training, fiscal tools, and research/analysis across tax and customs system dimensions: - Well-designed tax policy reforms - Tax policy must balance multiple objectives: reduce distortions to employment, production and investment; ensure equitable treatment and distributional goals; maintain simplicity to keep compliance and administrative costs low. - CD support is demand-driven and may be comprehensive or targeted. - CD spans all tax policy instruments: personal and corporate taxation, consumption taxation including VAT, excises, import tariffs, environmental and property taxation, and both domestic and international tax issues. - Policy advice on natural resource taxation continues with increased attention to climate change and the energy transition. - Institution building priorities: tax policy analysis capacity, revenue forecasting, estimation of tax expenditures, tax policy modeling, and support for tax policy units. - Strong tax administrations - Administration of the TADAT tool is part of the GPFP revenue component. - RA-Gap will be deployed to estimate policy and compliance gaps to better design reforms. - CD focuses on both domestic and international tax administration, including governance and strategic management, modernization of core operational functions (taxpayer service, filing and payment, audit and collection enforcement, dispute resolution). - Emphasis on compliance risk management and multi-national/ extractive industry tax risks. - Support for human resource management, digitalization strategies (systems and processes), and GovTech solutions (data management and analytics, risk models). - Customs administration - Customs supports revenue collection and trade facilitation; efficient international trade is important for recovery. - In LICs, 37 percent of tax revenues are collected through customs operations; in EMEs, 28 percent. - CD will strengthen customs operational aspects and collaboration/exchange of information between customs and tax administrations to strengthen revenue collections. - Tax legal framework - Tax policy and administration depend on substantive and procedural tax laws; legal frameworks should be benchmarked against international good practices and updated in tandem with policy and administrative reforms. - Training and peer learning will build institutional capacity and increase tax certainty, minimize avoidance, and ensure international compatibility. - International taxation focus - Priority on LIDCs and small states with less support historically; CD to address implications and implementation of the two-pillar international tax package and other reforms. - CD activities include: (i) assessing reform proposals and implementation needs; (ii) advising and supporting legal drafting; (iii) supporting implementation approaches adapted to country capacity, including simplification; (iv) bridging capacity gaps between leading EMEs and other developing countries in international tax administrative capabilities; and (v) developing LIDC tax administration capacities using analytical products such as the IMF Framework for International Tax Administration Strengthening (FITAS). - Targeted delivery using agile modalities: on-demand CD, analytical and self-assessment tools (including FITAS), training/peer learning, blended delivery (online, virtual, in-person). ### B. Revenue Component Structure — Modules and Modalities - The Revenue Component builds on predecessor thematic funds (RMTF, MNRW, TADAT) and uses a modular approach integrating tax policy and revenue administration strengthening across dimensions including natural resources and diagnostic tools. - Core country-centered CD delivered through three core modules (Tax Policy, Revenue Administration, TADAT), supported by Training and Peer Learning, Fiscal Tools/Research, and TADAT operational support. - Table of GPFP Revenue Component Modules (objectives preserved verbatim): - I. Tax Policy - Improve Tax Policy Design - Strengthen Policy Monitoring, Evaluation, and Institution Building - II. Revenue Administration - Strengthen Management and Governance Arrangements - Strengthen Core Tax Administration - Improve Customs Administration - III. Training and Peer Learning - Training: Develop Capacity for Assessing Fiscal, Macroeconomic, and Structural Policy Issues - Peer Learning: Provide Peer Learning Opportunities to Beneficiary Countries - IV. Fiscal Tools, Research and Analytical Work - Develop and Apply Fiscal Tools - Publish Research and Analytical Work - V. TADAT - TADAT Assessments: Deploy TADAT to Diagnose Strengths and Weaknesses of Tax Systems - Training and Tools: Develop, Update and Deliver Training of the Use and Application of the TADAT, and Tools Developed and Deployed to Raise Awareness - Design, Review and Monitoring: Review and Monitor of the Use and Applicability and Update TADAT as needed MODULE I: Tax Policy - Objectives: - Improve Tax Policy Design - Guidance on tax design and non-tax revenue instruments; drafting tax laws covering core taxes (personal, corporate income taxes, value added tax, excise taxation, social security contributions, property taxation) and specialty areas (trade taxes, international tax, investment tax incentives, extractive industry taxation, environmental tax, revenue decentralization). - Targeted advice on transfer pricing, VAT refunds, taxation of digital supplies, regional and international harmonization, wealth taxation, health taxes, carbon taxation, and gender-responsive tax policies. - Strengthen Policy Monitoring, Evaluation and Institution Building - Advice on organizational structures and capacity for tax policy advice and analysis, tax policy reform planning and management, transparency of tax policymaking and laws, assessing tax expenditures, capacity building of tax policy units, and revenue forecasting and analysis. MODULE II: Revenue Administration - Objectives: - Strengthen Management and Governance Arrangements - Reform Strategy and Management: support preparation and approval of a reform strategy informed by diagnostics (notably TADAT) and possibly coordinated with MTRS deployment. - Transparency and Accountability and Operational Arrangements: advice on organizational structures, separation of headquarters/operational functions, articulation across core and support functions, external oversight, internal controls, and integrity perception. - Operational Enablers: GovTech strategies for IT/digital transformation, human resources (leadership, qualified/stable staff, transparent recruitment/retention/training), and other support functions (infrastructure, finance, legal, research, communications). - Corporate and Compliance Risk Management: design strategies to identify and mitigate institutional and compliance risks, and comprehensive compliance improvement programs. - Tax and Customs Laws and Procedures: ensure laws are updated, simplified, aligned with modern standards, and gender-responsive; review and drafting of procedural codes. - Strengthen Core Tax Administration Functions - Registration, filing and payment, audit, dispute resolution, taxpayer services. - Improve Customs Administration - Trade facilitation initiatives to reduce clearance times (single window, coordinated border management, authorized economic operator programs, risk-based inspections). - Compliance support for foreign trade operators (harmonized procedures, traceability, self-assessment declarations). - Enforcement: post-clearance audits, monitoring special regimes and exempted goods, data exchange and cross-matching with tax administration and other agencies, combat smuggling. MODULE III: Training and Peer Learning - Focus: develop and deliver tax policy and revenue administration training via in-person and online modalities; foster peer-to-peer learning. - Objectives: strengthen skills to analyze economic developments and manage macroeconomic and financial policies; enhance IMF dialogue and share member country experiences. - Delivery: multi-country learning frameworks, face-to-face (classroom, conferences, seminars) and online (VITARA, RFAx, webinars, podcasts). Online courses may serve as pre-engagement tools. - Utilizes IMF Regional Training Centers (RTCs) and the IMF Revenue Portal as a knowledge hub. - Emphasis on low-capacity countries. MODULE IV: Fiscal Tools, Research and Analytical Work - Two major work areas: - Fiscal Tools - Identify gaps in tax policy and administration, prioritize reforms/CD efforts, and measure results. - Tools include ISORA/ISOCA, WoRLD, and RA-GAP among others. - Research and Analysis - Assess emerging issues, trends, and practices in tax policy and revenue administration. - Build on impactful analyses from RMTF (e.g., use of ISORA data, gender equality in revenue administration). - Close linkage with Modules I–III to strengthen CD advice and dissemination through training and peer learning. MODULE V: Tax Administration Diagnostic Assessment Tool (TADAT) - Overview - TADAT provides an objective health assessment of tax administration across 9 key performance outcome areas (POAs). - TADAT is maintained and governed by a consortium of partners supported by a technical advisory group (T-TAG). - A total of 170 TADAT assessments had been carried out by September 2023, covering national and subnational tax administrations in all geographic regions. - TADAT findings indicate reform needs and priorities and inform tax administration reform strategies and multiyear reform program design, often in combination with RA-Gap and tax policy assessments. - TADAT contributes to strengthened tax administrations and domestic revenue mobilization. - Module focus areas - TADAT Assessments - Conducted by certified assessors per the Field Guide; remain demand-driven on formal country request. - Tool kept up to date with tested good practices and applicable across geographic regions and organizational structures. - Coordination with stakeholders to leverage synergies and minimize duplication. - Training and Outreach - Develop and maintain pool of trained assessors and team leaders; awareness courses for non-assessors; dissemination at international, regional, and country levels. - Training builds understanding of tax administration interlinkages and how diagnostics inform reform planning. - Design, Review, and Monitoring - Standards and controls for delivery, quality assurance, and periodic review; TADAT framework reviewed and revised at least every 5 years unless extenuating circumstances warrant earlier revisions. - Implementation of assessor accreditation and quality assurance controls overseen by the TS. - TADAT Operations - TADAT Secretariat (T-SEC) maintains secretariat structure guided by the GPFP Steering Committee (GPFP SC). Key responsibilities include secretariat support to GPFP SC; proposing annual TADAT workplan and budget for GPFP SC review and endorsement; custodial role of the TADAT brand including website management; processes for high-quality assessments (assessor training and quality controls); coordination with partners and stakeholders; reporting to the SC; external representation. - T-SEC approved structure: a Head, up to 3 technical experts, a project coordinator, and an administrative coordinator; may be supplemented by short-term experts as needed. - T-SEC is supported by IMF infrastructure including oversight by a Deputy Director in FAD; composition may be revised by the Director of FAD in consultation with the GPFP SC. - T-SEC is supplemented by a T-TAG chaired by the Head of T-SEC; T-TAG includes technical representatives from each TADAT partner, regional tax administration organizations/agencies, and up to 3 GPFP SC endorsed academic members. Modalities for T-TAG functioning and member selection are set in a guidance note; composition may be adjusted in consultation with the GPFP SC. The Head of T-SEC will provide updates on T-TAG activities to the GPFP SC. *Source: IMF — Global Public Finance Partnership—Program Document, section 2.1 Revenue Component.* ### 2.2 Spending Component ### Spending Component ### Context - Government spending is critical for the well-being of the population and for achieving the SDGs; citizens expect value-for-money, transparent and accountable management of public resources. - Achieving economic and social objectives requires sustainable fiscal and spending policies, enabled by robust institutions, rules, and processes. - Many governments have seen debt levels increase and fiscal space shrink following recent shocks and policy responses; in this context, making the right spending allocation choices and maximizing value-for-money is vital. - To spend well, governments need sound public finance policies and modern fiscal and budgetary institutions and frameworks to implement these policies. - Spending policies are an essential tool to help households and businesses withstand crises and to progress toward the SDGs; fiscal strategy should align with economic and development objectives while maintaining debt sustainability. ### Scope and Capacity Development (CD) Themes - The GPFP’s Spending Component will help countries develop and strengthen spending and macro-fiscal policies, and the institutions, frameworks, rules, and processes for managing public finances. - The Spending Component will work in tandem with the GPFP’s Revenue Component to promote fiscal sustainability, equity, effective allocation of resources, and efficient delivery of public goods and services. - The GPFP promotes a medium-term approach to designing spending policies and building frameworks, rules, and processes to ensure fiscal policy choices are sustainable over the medium and longer term. Key emphases: - Strengthening government capacities to design, implement, assess, and prioritize public spending policies to achieve social and economic objectives in a fiscally sustainable manner. - Prioritizing spending policies and programs is increasingly critical as governments operate within tighter budgets; the level and composition of public spending affect macroeconomic stability, resource allocation, and distribution. - Support will cover equitable options to create space for productive spending in human and physical capital; manage public employment and compensation; curtail costly and poorly targeted subsidies; and address long-term spending pressures from pensions and health programs. - Many economies face challenges expanding adequacy and quality of social protection, education, and health care in a socially and fiscally responsible manner; GPFP CD will support estimating adequacy of spending for SDG progress and assessing sustainability, effectiveness, and efficiency of price subsidies, the wage bill, education, health, and social protection systems. - GPFP CD will support expenditure to enhance digitalization (e.g., quicker and more targeted social payments) and consider impacts on gender outcomes. - Strengthening budgetary frameworks and processes across all stages of the budget process: fiscal policies and frameworks, budget formulation, approval, execution and monitoring, and fiscal reporting. - A key focus is building capacity to prepare effective medium-term fiscal strategies and risk analysis to guide annual budgets. - CD will help develop gender and climate budgeting. - Strengthening public investment management (PIM) to improve public investment efficiency and derive growth benefits from infrastructure investment. - IMF analytical work has shown that, on average, countries lose about a third of the value of their investments to inefficiencies in public investment management processes. - Over 80 PIMAs have been conducted across all regions and income levels to assess and improve public investment governance. - A climate module (CPIMA) has been added to help identify institutional and process improvements for low-carbon and climate-resilient infrastructure. ### Spending Component Structure — Modules and Modalities - The core CD under the Spending Component will be delivered through two principal modules—Spending Policy, and Managing Public Finances to spend well—supported by modules for training and peer learning, and for fiscal and macroeconomic tools, research and analytical work. - The GPFP’s Spending Component will support climate, gender/inclusion, and GovTech objectives through sound spending policies and effective PFM. Table 2 — GPFP Spending Component Modules (objectives summarized) - I. Spending Policy - Strengthen Expenditure Policy Formulation and Design - Strengthen Policy Evaluation and Institution Building - II. Managing Public Finances - Build Fiscal Institutions and Frameworks - Strengthen Budget Credibility - Improve Fiscal Transparency and Reporting - III. Training and Peer Learning - Training: Develop Capacity for Assessing Fiscal, Macroeconomic, and Structural Policy Issues - Peer Learning: Provide Peer Learning Opportunities to Beneficiary Countries - IV. Fiscal and Macroeconomic Tools, Research and Analytical Work - Develop and Apply Fiscal Tools and Macroeconomic Projection Tools - Carry out and Publish Relevant Research and Analytical Work ### Module I: Spending Policy to Deliver Value for Money - Objectives: - Strengthen Spending Policy Formulation and Design - Strengthen Spending Evaluation and Institution Building Key CD areas and interventions: - Setting spending priorities and assessing expenditure initiatives and the costs of advancing the SDGs. - Designing inclusive policies to protect the vulnerable and boost human capital. - Ensuring sustainability, adequacy, and efficiency of pensions. - Managing public wages and employment to ensure quality service delivery and fiscal sustainability. - Reviewing food and energy subsidies to ensure value for money. - CD support will use FAD’s tools to assess adequacy, allocation, and sustainability of spending, including medium-term expenditures in health, education, and selected infrastructure for SDG progress. - CD will build baseline understanding of current expenditure and assess equitable opportunities for more sustainable, efficient, and effective public spending. - Support will raise MoF capacity to engage with spending ministries, enhance efficiency of education and health spending, assess social protection adequacy, and design sustainable energy subsidy reforms with mitigating social measures. - CD will cover wage bill reform (compensation and employment measures) and assess long-term pension sustainability while promoting reforms to increase coverage and enhance sustainability. ### Module II: Managing Public Finances to Spend Well - This module will develop more effective, efficient, and transparent budget processes covering fiscal policies, rules and analysis, strategic planning and medium-term fiscal frameworks, medium-term budgets, budget formulation and allocation, budget execution and accountability, fiscal risk management and analysis, fiscal reporting and control, fiscal transparency, PIM, gender budgeting and climate budgeting. Three overarching objectives and key CD support areas: - Building and strengthening fiscal institutions and frameworks - Strengthening fiscal policies and frameworks: baseline assessments of fiscal policies and opportunities; support for strategic fiscal planning and macro-fiscal frameworks; fiscal sustainability assessments; adoption or improvement of fiscal rules (including for subnational governments); strengthening fiscal institutions (including fiscal councils); estimation of fiscal multipliers; projection of expenditure and revenue baselines; special fiscal regimes for natural resource rich countries. - Enhancing MOF capacity to plan, implement and sustain PFM reforms: diagnostics of PFM systems; PFM action plans; guidance on PFM information systems and digital solutions; reforming organizational structures; developing comprehensive legal frameworks for the PFM cycle; support for legal and institutional framework for PPP operations. - Improving capacity to plan, implement and sustain infrastructure governance reforms: use of the PIMA diagnostic tool to assess public investment cycle stages and identify reform priorities; support for CPIMAs and follow-up CD on PIMA/CPIMA reform priorities. - Strengthening budget credibility - Integrating a credible medium-term budget framework with the budget process: support for comprehensive, credible, and policy-based budget preparation; integrating medium-term fiscal frameworks with annual budgets; policy costing approaches for new initiatives; spending reviews; planning and budgeting for public investments; budget processes to support ministerial decision making and effective budget approval; use of budgets to allocate resources to SDG objectives and promote gender equality and climate change objectives (gender budgeting and green PFM). - Publishing a comprehensive and unified annual budget: improving budget classification systems and program and performance-based budgeting; including transfers to subnational governments in budget documentation and governed by rules-based systems. - Strengthening budget execution processes, monitoring, and controls: ensuring timely funding during budget execution; promoting Treasury Single Account (TSA) use; enhancing expenditure controls; improving cash forecasts; strengthening cash and debt management and their integration; improving arrears recording and management; strengthening accounting rules and systems; improving timeliness of in-year budget execution reports; disclosure and management of state assets; enhancing reporting of the public sector balance sheet. - Improving fiscal transparency and reporting - Enhancing comprehensiveness, frequency, and quality of fiscal reports: diagnostic tools to highlight strengths and weaknesses in fiscal transparency and develop country-specific reform plans; improving fiscal, financial, and statistical reporting; internal and external audit quality; aligning accounts and budget classifications with international standards; ensuring audited annual financial statements are published in a timely manner and scrutinized by parliament; enhancing legislative oversight. - Strengthening identification, monitoring, and management of fiscal risks: tailored CD on projections and analysis of fiscal risks using FAD’s new fiscal risk tool kit; strengthening institutional capacities and frameworks for managing fiscal risks; building capacity to analyze risks to fiscal forecasts and overall fiscal sustainability; disclosing and managing specific fiscal risks including from public corporations and PPPs; improving fiscal coordination and central oversight of sub-national government risks. ### Module III: Training and Peer Learning - Objectives: - Develop and deliver training in fiscal and public spending policy, PFM, macroeconomic frameworks, macro-fiscal modeling, forecasting and policy analysis, management of natural resource wealth, and fiscal policies for inclusive growth. - Provide peer learning opportunities to beneficiary countries to share policy experiences. - Modalities: - Multi-country learning frameworks delivered face-to-face (classroom, conferences, seminars) and online (IMF curricula like PFMx, webinars, podcasts, peer learning events). - Online courses may be used as pre-engagement tools to provide basic concept understanding before country-specific CD. - IMF’s network of Regional Training Centers (RTCs) can provide logistical support. ### Module IV: Fiscal and Macroeconomic Tools, Research and Analytical Work - Objectives: - Fiscal and Macroeconomic Tools: design, improve, and implement fiscal and macroeconomic tools to identify gaps in spending and PFM, prioritize reform and CD efforts, and enhance capacity to measure results. Develop macroeconomic projection tools to improve forecast and policy analysis informing decision-making; provide hands-on training and support to ensure officials can use tools for policymaking. - Research and analysis: assess emerging issues, trends, and practices in areas covered by the Spending Component; strengthen GPFP advice and inform priorities and policy options to support revenue mobilization in developing and emerging economies. - Linkages: - Close links to Modules I and II and to training module III to strengthen CD advice and ensure dissemination through training and peer learning. ### Governance Arrangements - The GPFP is a multi-partner initiative across public finance areas designed to deliver more effective and agile administration of CD funding, foster partner cooperation, provide a holistic view of CD impact, ensure a more uniform global reach, and provide greater visibility through global branding. - Governance and operational arrangements combine strategic guidance from partners with the IMF’s experience in macro-critical CD delivery to help countries reach fiscal and economic goals. *Source: IMF — Global Public Finance Partnership—Program Document* ### 3.1 Governance Structure ### gpfp-program - 3.1 Governance Structure ### Governance Structure - The GPFP will be overseen by a single Steering Committee (SC). - The SC will provide strategic guidance in setting the policies and priorities of the GPFP and oversee the execution of the CD support delivered through this initiative. - The SC consists of representatives from the GPFP’s contributing partners and IMF staff. - The GPFP SC will operate under similar governance arrangements that are currently in place for the legacy thematic funds. - Meeting frequency and procedures: - The SC will meet twice a year (with additional meetings as necessary). - All SC decisions will be taken on a consensus basis. - The SC will be chaired by a partner representative and will rotate each year. - Meetings can take place in person or virtually; it is intended to meet in-person once a year, as conditions allow. - Other stakeholders will be invited to participate as observers. - Expected governance benefits: - A unified governance structure with a single pool of resources to deliver CD support on “all things public finance.” - Flexibility to allocate CD funds between modules, regions, countries, and projects. - Simplified governance, administration, reporting, and financial operations. - The “single governance body” approach will allow SC members to take a holistic view while being informed by detailed modular data. ### Workplan (Section 3.2) - Multi-year workplans will be proposed to the SC on an annual basis for review and endorsement. - Project selection and delivery: - Demand driven, based on identified needs and country requests. - A single workplan for a given country will integrate all applicable components and modules. - Designed through consultations between IMF HQ, country authorities, and other development partners when applicable. - Expected demand sources: - New requests and initial follow-up and continued work from legacy RMTF and MNRW beneficiary countries. - Prioritization criteria: - Country need and the authorities’ commitment to reform. - Consideration of the overall CD workplan for the country being planned or delivered through other IMF funding sources (e.g., RCDCs). - Strive to balance the distribution of CD across regions and modules within the two GPFP components. - The TADAT workplan and budget will also be reviewed and endorsed by the GPFP SC. ### Accountability Framework (Section 3.3) - Alignment: - CD planning, management, and resource use will be fully aligned with the IMF’s Results-Based Management (RBM) framework. - Reporting and monitoring layers: - Program Level: - Monitored through a strategic results framework (set out in Annex IV) with set program objectives, outcomes, and indicators. - Strategic indicators provide an overarching top-down view; modular indicators measure bottom-up results within respective modules. - Strategic indicators are defined for each of the two component funds (Revenue and Spending) measuring progress in revenue mobilization and spending efficiency respectively. - Strategic indicators across the entire work program will measure progress in countries working toward improving policies, institutional frameworks, and systems in cross-cutting priority areas (climate change, gender/inclusion, and GovTech). - Modular level indicators will be informed by the aggregation of results of the projects. - Project Level: - Each project will have a comprehensive logical framework (log frame) aligned with the GPFP strategic results framework, relevant module outcomes, and the IMF’s CDMAP. - Log frames will define inputs, country-level objectives and outcomes, and verifiable indicators measured from baseline to target through intermediate milestones. - Management by IMF Staff: - CD Departments (mostly FAD) will supervise, execute, and backstop CD delivery under the GPFP. - Quality control through (i) ongoing supervision and backstopping from IMF HQ experts; (ii) careful screening and selection of experts; and (iii) regular self-assessments against predefined objectives and outcomes. - Area Departments will, in the context of IMF-supported country programs and surveillance activities, monitor and assess beneficiary countries’ progress implementing reforms supported by GPFP CD. - Global Partnerships Division (ICDGP) will provide support to CD Departments in governance and administration, coordination with external partners, production of liquidity projections, and financial reports. - Reporting: - IMF staff will provide annual reports and interim mid-year reporting to the SC, including narrative and financial updates at both the overall GPFP and Component Fund levels. - Annual and mid-year SC meetings will highlight particular topics or workstreams and decision matters. - Partners Connect will be used as a central repository to provide partners with information to monitor activities at country and module level, including granular and regular project-level reporting. - Dissemination policies will be guided by the IMF’s standard dissemination policy. - Independent Evaluation: - An external evaluation is planned preferably no later than 40 months after commencement of activities and subject to discussion with GPFP partners. - The evaluation will assess effectiveness and sustainability, offer lessons learned and recommendations, and inform CD design and delivery for the remainder of the 5 five-year phase and beyond. - The evaluation is expected to take place in IMF FY2028, subject to a satisfactory rate of execution of CD activities (corresponding costs budgeted accordingly). ### Program Management (Section 3.4) - Secretariat: - Secretariat functions for the GPFP SC are allocated to IMF personnel. - The GPFP secretariat will be guided by the SC to plan, implement, and oversee management and execution of the CD program. - Key responsibilities: - (i) provide secretariat support to the SC; - (ii) propose and circulate for SC review and endorsement the annual workplan and budget, and related operational strategies and procedures for the GPFP; - (iii) undertake custodial role for the GPFP brand, including communications and visibility; - (iv) consult, coordinate and cooperate with SC members and other partners including other IFIs as needed; - (v) report to the SC progress achieved under the work program; - (vi) represent GPFP externally. - Secretariat composition: - Up to 5 IMF personnel, including a head of secretariat and staff to support data analysis, communications, budget, and administrative coordination. - Note: All TADAT-related reporting and proposals for GPFP SC endorsement will also be managed by the GPFP Secretariat. ### Communications, Visibility, and Outreach (Section 3.5) - Main goals: spreading awareness, acknowledging partners, and providing visibility to the GPFP to broaden reach and influence and to showcase results. - A communications strategy will be developed in the first year and will include outreach, visibility, and dissemination measures such as: - Featuring the GPFP on the IMF institutional website on CD, stressing the GPFP’s purpose. - Launching a dedicated webpage as a hub for publicly available information on the GPFP (mandate, work program, supporting partners, recent activities and events, CD reports, and country stories). - Strategically using IMF CD digital media channels (social media posts, newsletters, videos). - Featuring case studies in assessments and annual reports where possible. - Developing a brochure and other materials (digital and hard-copy) for mission teams and potential beneficiaries. - Spotlighting selected GPFP activities in public IMF CD events and other high-visibility events. - Supporting partners by providing access to regular reporting on Partners Connect. - Footnote figures for IMF CD digital media channels (as of April 2023): - Facebook (52K followers); LinkedIn (17K followers); and Twitter (24K followers). Other IMF corporate accounts can be leveraged and have upwards of 2M followers. ### Resource Needs (Section 4.1) — key figures and assumptions - Funding target: - The IMF intends to raise new funding of USD 175-200 million for the GPFP initiative for an initial 5-year period. - Component-level funding orientation: - Initially consider a larger share for the revenue component (approximately 2/3) and a smaller share for the spending component (approximately 1/3). - Budget inclusions: - Management fee and program management costs included. - Transition funding for the last quarter of FY24 considered. - Illustrative budget (USD ‘000) — FY24 through FY29 and Total: - Revenue Modules I and II: 3,427; 17,105; 17,794; 18,511; 19,256; 20,029; Total 96,122 - Revenue Modules III and IV: 950; 1,600; 1,950; 1,950; 1,950; 1,950; Total 10,350 - Revenue Modules V: 0; 2,500; 2,500; 2,500; 2,500; 2,500; Total 12,500 - Spending Modules I and II: 650; 5,000; 9,000; 11,600; 11,648; 11,650; Total 49,548 - Spending Modules III and IV: 0; 750; 2,000; 2,100; 2,100; 2,100; Total 9,050 - Sub-total of Modules: 5,027; 26,955; 33,244; 36,661; 37,454; 38,229; Total 177,570 - Program Management: 226; 1,425; 1,750; 1,935; 1,980; 2,030; Total 9,346 - Sub-Total: 5,253; 28,380; 34,994; 38,596; 39,434; 40,259; Total 186,916 - Trust Fund Management Fee: 368; 1,987; 2,450; 2,702; 2,760; 2,818; Total 13,084 - TOTAL: 5,621; 30,367; 37,444; 41,298; 42,194; 43,077; Total 200,000 - Explanatory notes on component estimates: - Revenue Component estimate amounts to USD 119 million, based on historical annual spending of the 3 legacy funds (about USD 110 million over 5 years) plus USD 8–9 million to accommodate expansion into customs and EMEs. - Spending Component estimate amounts to USD 59 million, considering growing demand for CD on spending, transition of projects from bilaterally funded CD programs, and relevant spending components of legacy MNRW. - IMF trust fund management fee (7 percent) and program management costs included. - Assumptions and costing practices: - IMF charges all project-related costs under the GPFP on an actual cost basis. - IMF staff time will continue to be charged on a standard cost basis, per the simplified allocation method under the SFA framework. - Country CD programs may include LTX placements, diagnostic assessments including TADAT and PIMA, blended delivery modalities, peer learning, and limited training. - Scoping missions will be front-loaded. - A limited number of up to 8 per year will be carried out in select areas such as international taxation. - Training module will include developing and implementing online learning with ICD. - Costs of some fiscal tools may be shared with IMF own resources (e.g., ISORA/ISOCA). - T-SEC costs are embedded in the estimated budget under Revenue Module V. - GPFP Secretariat costs are based on IMF standard salaries and estimated operating expenses, including communications, independent external evaluation, and SC expenses. - The numbers and splits across modules are indicative; actual work plans will be informed fully by CD demand. - Component funds will have separate financial reporting and will include the modules set forth in Annex II. ### Transition (Section 4.2) - Launch timing: - IMF plans to launch the GPFP officially in mid-2024 with an SC meeting and launch event. - An inaugural SC Meeting is envisaged for late January 2024 to ensure a smooth transition and to start a limited number of new projects. - January 2024 SC meeting objectives: - Endorse a limited workplan including legacy projects requiring continued financing, urgent new requests for CD support, and startup costs (e.g., GPFP secretariat). - Take stock of GPFP finances, including resources secured at that point. - Transition approach for legacy thematic funds: - Where sufficient funds remain (MNRW and TADAT), CD support will be delivered in parallel to the GPFP with reporting subsumed into GPFP reports; MNRW and TADAT SCs will continue to be consulted for significant revisions. - For the RMTF, current CD projects that will continue under the GPFP or require financing to continue without interruption will be proposed to the SC in January 2024; agreed interim workplan would start once approved by the SC rather than waiting until the official launch in mid-2024. - Bilaterally financed CD projects will continue under their existing arrangements until conclusion and will be reported as agreed under their bilateral arrangements. - Over time, an increasing amount of fiscal CD is expected to be delivered through the GPFP rather than bilateral structures; GPFP will calibrate plans and operations accordingly. - Legacy fund closure reporting: - All legacy thematic funds will circulate a Final Report to their respective SCs no later than 12 months after their activities conclude. - The SCs of the legacy funds will not meet after January 2024 but will be approached if and as needed, with decisions to be made on a lapse-of-time basis. *Source: IMF — Global Public Finance Partnership—Program Document* ### 4.3 Financial Management ### 4.3 Financial Management ### Account structure and financial operating units - All partner contributions to the GPFP will be deposited into a dedicated GPFP multi-partner subaccount for the Initiative under the IMF’s Framework Administered Account for Selected Fund Activities (the “SFA Instrument”). - The IMF will establish the GPFP subaccount in October 2023. - Three financial operating units will be established under the GPFP to track partner contributions: - one operating unit for the GPFP revenue component; - one operating unit for the GPFP spending component; - a third initiative-level operating unit for GPFP-wide costs (e.g., evaluations). - Partners who do not earmark funds to a particular component will have their contributions held in the Initiative-level financial operating unit until programmed within an endorsed workplan in one or both components. - It is planned to include into the GPFP some RMTF projects that need additional funding (at approximately USD 3-4 million), a limited number of new projects, and the operations of the GPFP Secretariat. ### Contribution arrangements and legal/administrative framework - All contributions to the GPFP subaccount will be based on a Letter of Understanding (LOU) between the IMF and the contributing partner. - The LOU will be subject to the terms and conditions of the subaccount and those of the overall SFA Instrument. - The IMF will administer and account for all partner contributions in accordance with its financial regulations and other applicable IMF practices and procedures. ### Procurement, staffing, and consultant engagement - If the IMF recruits outside consultants and experts, it will do so in accordance with its established hiring procedures. - For any procurement of goods and services beyond a certain threshold (currently US$50,000), IMF regulations require a competitive bidding process with at least 3 competitive bids. ### Cost charging, staff time, and trust fund management fee - The IMF will charge all project-related costs under the GPFP on an actual cost basis. - IMF staff time will be charged based on a standard cost basis, in accordance with the simplified allocation method used for donor reimbursement of IMF costs under the SFA framework. - The IMF will charge a trust fund management fee of 7 percent. - The fee is applied to actual expenses only (and not taken as a levy on contributions as they are received). ### Reporting, transparency, and audit - The IMF will provide GPFP partners with reports on the GPFP subaccount’s expenditures and commitments, including details for each of the two component funds. - Operations and transactions conducted through the subaccount will be subject to annual audits. - Separate reporting on GPFP budget execution will be provided at each Steering Committee meeting and will be available on an ongoing basis via the IMF’s partner portal (Partners Connect at www.imfconnect.org). *International Monetary Fund — Global Public Finance Partnership—Program Document.* ### Annex IV. GPFP Strategic Results Framework ### Annex IV. GPFP Strategic Results Framework ### Strategic Indicators — Program Level - Component: Revenue - Desired outcome: Domestic tax revenue performance improves in GPFP beneficiary countries - Indicators: - Average tax-to-GDP ratio trends up — Source: WEO/WoRLD - Percentage of countries with increased tax-to-GDP ratio — Source: WEO/WoRLD - PL2: Tax effort ratio improves in GPFP beneficiary countries - Indicator: Average tax effort ratio improves — Source: WoRLD - Indicator: Countries improve the tax effort ratio — Source: WoRLD - Note: Beneficiary countries will be included in the calculations of indicators on the date they enter the project, which will constitute the baseline for measuring the indicators. - Note: Reporting on PL2 is expected to start in the mid-term of program when the WoRLD data set is complete. - Component: Spending - PL3: Government spending is adequate for achieving economic and social objectives, efficiently allocated, and sustainably financed - Indicators: - Average additional spending needs to make progress along the SDGs decline — Source: SDG costing tools - Percentage of countries with declining gap between spending and spending needs to make progress along SDGs — Source: SDG costing tools - PL4: Government improves budget credibility - Indicators: - The average gap between total expenditure outturn and planned expenditure narrows (percent of GDP) — Source: Project management information - Countries reduce the gap between total expenditure outturn and planned expenditure (%) — Source: Project management information ### Cross-cutting Outcomes (Climate, Gender/Inclusion, GovTech) - Climate (CP1) - Desired outcome: Improved fiscal policies and institutional frameworks to combat climate change - Indicator: Percentage of countries integrating climate change considerations into revenue or spending strategies/total countries — Source: Project management information - Gender/Inclusion (CP2) - Desired outcome: Improved institutional framework and policies for gender equality - Indicator: Percentage of countries integrating gender equality considerations into revenue or spending strategies /total countries — Source: Project management information - GovTech (CP3) - Desired outcome: Information systems and digital solutions are improved - Indicator: Percentage of countries with strategic and/or operational action plans for information systems and digital solutions — Source: Project management information ### Operational/Project Level Indicators — Core Focus Areas - Tax policy (Module) - RM1.1: Tax reforms lead to increased revenue collections and improve distributional fairness and economic efficiency - Indicator: Countries enact new laws (%) — Source: Project management information - RM1.2: Organizational structure and capacity related to tax policy analysis improve - Indicator: Countries establish or improve tax policy units (%) — Source: Project management information - RM1.3: Transparency of tax regime improves - Indicator: Countries estimate and report tax expenditures (%) — Source: Project management information - Revenue Administration - RM2.1: Organizational arrangements enable more effective delivery of strategy and reforms - Indicator: Countries with modernized arrangements (e.g., clear organizational structure along functional lines and taxpayer segmentation or risk levels and separation of roles between HQ and local branches) (%) — Source: Project management information - RM2.2: Capacity for reform increased due to clear reform strategy and a strategic management framework adopted and institutionalized - Indicator: Countries’ strategic and operational plans prepared and adopted (%) — Source: Project management information and ISORA / ISOCA - RM2.3: Taxpayer services initiatives to support voluntary compliance are strengthened - Indicator: Countries increase taxpayer availability to electronic taxpayer services and information (%) — Source: ISORA - RM2.4: A larger proportion of taxpayers meet their filing and payment obligations, as required by law - Indicator: On-time filing, and on-time payment increase (%) — Source: ISORA - RM2.5: Customs control during the clearance process more effectively ensures accuracy of declarations - Indicator: Rate of physical inspections decreased (%) — Source: Project management information / ISOCA - RM2.6: Audit and anti-smuggling programs more effectively ensure enforcement of customs laws - Indicator: Data is exchanged with the tax department and other government agencies (%) — Source: Project management information / ISOCA - Spending Policy and Managing Public Finances - SM1.1: Government spending policy improves in GPFP beneficiary countries - Indicator: Gap between spending to GDP relative to peers narrows (%) — Source: Expenditure Assessment Tool - Indicator: Countries develop expenditure reform strategy (%) — Source: Project management information - SM1.2: Promoting commitment to spending reforms, as well as raising capacity of MOFs to engage spending line ministries - Indicator: Countries enact new laws (%) — Source: Project management information - SM2.1: Strengthened fiscal policies and legal and institutional frameworks - Indicator: Average score of countries for fiscal institutions supporting fiscal sustainability improves — Source: PIMA Database, Institution 1 - SM2.2: The capacity of ministry of finance to plan, implement and sustain PFM reforms is enhanced - Indicator: Countries have strategic and/or operational PFM action plans (%) — Source: Project management information - SM2.3: The capacity to plan, implement and sustain infrastructure governance reforms is enhanced - Indicator: Average score of countries for national and sectoral planning institutions improves — Source: PIMA Database, Institution 2 - SM2.4: A more credible medium-term budget framework is integrated with the budget process - Indicator: The average gap between medium-term expenditure forecast and outturn declines (percent of GDP) — Source: Project management information - SM2.5: A more comprehensive and unified annual budget is published - Indicator: Average score of countries on budget comprehensiveness and unity improves — Source: PIMA Database, Institution 7 - SM2.6: Budget execution processes and Treasury Management are strengthened - Indicator: The average gap between current expenditure outturn and forecast declines (percent of GDP) — Source: Project management information - SM2.7: Comprehensiveness, frequency, and quality of fiscal reports is enhanced - Indicator: Average score of countries on annual financial statements completeness and timeliness improves — Source: PEFA, indicator 29 - SM2.8: Strengthened identification, monitoring, and management of fiscal risks - Indicator: Countries with budget documentation presenting information on fiscal risks (%) — Source: Open Budget Survey, Question 42 - Complementary Areas: Training, Tools, Research - R/S3.1: Participants effectively acquire knowledge and skills in fiscal, macroeconomic, and structural policy issues and use them subsequently on the job and/or in their interaction with the Fund - Indicator: Participants demonstrate that they have effectively acquired knowledge and skills at the Absolute Learning level as measured by pre- and post-course test (%) — Source: Project management information - Indicator: Number and percentage of women participating in training and peer-learning events — Source: Project management information - R/S4.1: Analytical tools/models are developed and/or applied in policy analysis and implementation - Indicator: Countries apply fiscal and/or macroeconomic tools (%) — Source: Project management Information - R/S4.2: High quality working papers and technical notes with clear application in CD work are published - Indicator: Number of analytical research papers prepared and published — Source: Project management information - TADAT Outcomes - RM5.1: TADAT geographical footprint is increased - Indicator: Number of first and repeat TADAT assessments in regions with historically less coverage — Source: Project management information - RM5.2: Training and assessment are of high quality - Indicator: Results of training and assessment surveys are positive — Source: Project management information - RM5.3: TADAT tool is relevant - Indicator: Tool and training materials are reviewed and updated — Source: Project management information - Note: Operational Indicators are a subset of Project Indicators for program reporting purposes. - Note: Calculations % based on GPFP beneficiary countries’ outcomes (Numerator) / the number of countries receiving CD through the initiative in the specific area (denominator). ### Strategic Results Framework — Risk and Mitigation Matrix - Program-level risks and mitigations - PL1 Risk: External shocks (social, political, economic, etc.) impact government revenue. - Mitigation: Work with the IMF country teams and other IMF departments to analyze emerging fiscal risks and propose potential fiscal policies to minimize fiscal risks. - PL2 Risk: Government revenue measures adversely impact the tax ratio. - Mitigation: Work with IMF country teams and authorities in monitoring revenue measures and their impact on the tax ratio and propose reforms to boost the tax ratio. - PL3 Risk: Macroeconomic shocks affect the level and allocation of government expenditures, potentially posing risks to key public service delivery. - Mitigation: Monitor macroeconomic developments in coordination with IMF country teams and discuss with authorities their contingency plans to manage risks to public service provision. - PL4 Risk: Exogenous shocks destabilize the fiscal position and the fiscal reform program. - Mitigation: Review CD delivery under the program and react flexibly to take account of changes in exogenous conditions. - Cross-cutting risks and mitigations - Risk: Potential delay in demand for CD despite IMF outreach efforts, largely due to low commitment of MoF staff to adopt and implement practices which may be seen as not being part of the MoF’s core mandate. - Mitigation: Assist authorities in recognizing the integration of these CD activities within their broader reform agenda (particularly for PFM). - Risk: Lack of political support or prioritization of cross-cutting reforms. - Mitigation: Take advantage of momentum obtained through international fora (e.g., COP on climate) and link with IMF surveillance work to highlight importance of themes to political authorities. - Core focus area risks and mitigations - Risk: Implementation of reforms is impeded by lack of political commitment and management ownership, frequent rotation of management and staff, weak management and staff capacity, or external shocks such as war, political instability, health crisis, etc. - Mitigations: - Use FAD fiscal tools to assess and propose robust strategies, considering critical risks. - Work with other development partners to assess political economy issues and propose ways to address them. - Invest in leadership and managerial training. - Monitor milestone implementation regularly and carefully and discuss the status implementation with the authorities. - Complementary area risks and mitigations - Risk: Overlap of reforms with other development partners stretches limited country capacity and reduces effectiveness of CD delivery program. - Mitigation: Coordinate reforms with major development partners on a country-by-country basis. - TADAT risks and mitigations - Risk: The TADAT Findings are not used to inform strategic management processes or reform formulation. - Mitigation: The T-Sec liaises with the authorities and supporting partners to ensure full understanding of TADAT findings and how they can be embedded in the reform planning processes. This may include follow through CD as part Module II in the Revenue Component. ### Annex V. Transition Plan: Legacy Funding Programs to the GPFP - Purpose and scope - Deliver continuity for ongoing CD projects that meet country needs while ensuring transparency and partner support. - Focus on transition of ongoing relevant CD in the current 3 thematic Funds (RMTF, MNRW and TADAT), which will be phased out with the onset of the GPFP. - Address bilateral financing for fiscal CD received in addition to contributions to the GPFP. - Funding timelines and expectations - TADAT is anticipated to have sufficient funding available through April 2024 (i.e., the end of FY24). - MNRW is anticipated to have remaining funds to complete its planned activities under approved projects that can be extended (with SC approval) into FY25. - RMTF is expected to expend all funds before its stated end date of April 2024. - The TADAT has secretariat functions that need funding to be endorsed prior to the start of FY25. - Continuity of long-term expert (LTX) contracts - The plan ensures continuity of current LTX contracts within the CD projects anticipated to continue under the GPFP. - SC endorsement of workplans with LTX delivery is needed before the internal administrative process of contracting them can begin, which takes a minimum of eight weeks. - Objective: avoid a financing gap that could adversely impact CD support to countries. - Inaugural GPFP governance milestone - The GPFP will hold its first (inaugural) SC meeting in January 2024, providing an opportunity to roll into the GPFP some existing CD projects. - Availability of funding commitments and funds received for the GPFP by early January 2024 will inform the size of the portfolio presented in the January meeting. - Approach to development of GPFP workplan and project selection criteria - A transition team will review existing projects and requests from authorities to identify priority projects for financing under the GPFP and specify which will be part of the inaugural GPFP workplan. - Priority criteria (not cumulative): - Traction and ownership by the authorities is a precondition for all existing projects to be transitioned. - Existing projects with externally financed LTX and HQBC contracts where contract renewal is expected in Q4 FY24 or Q1 FY25 but only possible with financing from GPFP (this includes the TADAT secretariat). - New CD requests with strong reform momentum requiring multi-year support. - All projects will be ranked based on urgency. Project budgets would be presented for a maximum of 12 months. - Additional financing can be sought through a simple project amendment proposal once the GPFP has sufficient funds to cover a full-scale workplan. - Based on the review, FAD staff will prepare a list of projects for endorsement by the GPFP steering committee. - Projects not presented at the January SC meeting may be prioritized and presented at the SC meeting for the official mid-year launch of the GPFP. - Phasing out legacy thematic funds - Proposed safeguard track for MNRW to ensure its work plan can be implemented fully using available funding; this requires SC endorsement to extend the MNRW until end FY25 (April 30, 2025), or until all funds are exhausted (whichever comes first). - RMTF is expected to exhaust all funds prior to the start of FY25, and TADAT by end-FY24; similar safeguard tracks may be proposed for endorsement by respective SCs as needed. - No separate SC meetings of the legacy Funds will be held; decisions requiring SC endorsement (e.g., amendments of existing projects) are proposed to be handled on a Lapse-of-time (LOT) basis. - Legacy fund project progress reports and financial reports will be integrated into GPFP reporting and circulated to legacy SCs for consideration. - Bilateral funded projects during transition - Intent is to eventually fund most fiscal CD through the GPFP; however, for the first two years, bilateral funding may continue in parallel. - Ongoing public finance CD projects financed through bilateral subaccounts will continue without change—financed by the bilateral resources and reported upon as agreed—until they conclude. - Future assessment of the need for bilateral CD vehicles in the fiscal area will use the same criteria for selecting GPFP projects, the existing GPFP workplans, and the geographical/topical priorities of potential bilateral development partners. --- _Source: https://www.imf.org/-/media/files/capacity-developement/partners/gpfp-program.pdf_