## ppea2023023

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---

### EXECUTIVE SUMMARY — Context and overview
- The FY24 budget is set against a complex global economic backdrop and heightened demand for Fund support.
- Membership faces an increasingly shock-prone world and needs to strengthen resilience to longer-term structural challenges.
- Strong sustained demand for Fund engagement leaves work pressures elevated.
- March 30, 2023

### FY24–FY26 budget framework
- Seeks to align resources with institutional priorities and emerging needs, recognizing the need for difficult trade-offs.
- Second of a three-phase augmentation is allocated.
- A management fee under the Resilience and Sustainability Trust is operationalized.
- Temporary pandemic-related resourcing continues to be unwound.
- The three-step augmentation framework foresees a real net administrative budget increase averaging 2 percent per year in FY23-25, returning to a flat real trajectory at the augmented level thereafter.

### FY24 administrative budget (proposed) — key figures and features
- Total: $1,411 million ($1,328 million in FY23 dollars).
- Key features:
  - Includes a 2 percent augmentation.
  - Includes a one-off $7 million allocation for overseas Annual Meeting travel.
  - Builds on continued reprioritization while supporting greener, digital, and more inclusive global economy work through augmentation funding.
- Operational note:
  - The Fund will need to remain agile, reprioritizing as needed, given rapidly evolving needs and high budget utilization.

### External funding and capacity development
- Externally funded spending expected to continue to recover as in-person capacity development picks up.
- Proposed 3 percent real increase in externally financed spending limit (to $250 million, $236 million in FY23 dollars).

### FY24 capital budget (proposed) — key figures
- Total: $108 million (Table 11 shows FY24 Proposed 108.3 million in current dollars including CCE).
- Key drivers:
  - Resumption of facilities-related investments, including hybrid workspace and field-based needs.
  - Continued stabilization of information technology investments.
  - Projected increase in cloud costs contributes to the higher overall capital envelope.

### Sustainability and fiscal anchor
- FY24–FY26 budget is consistent with the Fund’s medium-term income position and precautionary balance target.
- Fund maintains an expenditure-based anchor (real flat framework) reflecting decade-long reprioritization and savings while supporting accumulation of precautionary balances.

### Risks and operational pressures — selected indicators
- Elevated risks include:
  - Volatile inflation outlook.
  - Uncertainty around demand for Fund programs.
  - Complex modernization-related needs.
  - High utilization and sustained work pressures.
- Workload and wellness indicators:
  - Average overtime remains high relative to pre-pandemic levels, particularly for senior staff.
  - Annual leave has recovered on average but remains low for some staff; projected annual leave remains below minimums for some and cumulative leave balances are stubbornly high.
  - An internal task-force report highlighted the impact of high sustained work pressures on staff wellness.
- Enterprise risk management is being strengthened.

### Income and budget framework — use of income and medium-term dynamics
- Budget framework avoids overdependence on extraordinary lending income; net income above expenses supports accumulation of reserves and precautionary balances.
- Total spending envelope, capital budget, and net administrative budget (gross expenditure minus receipts) are subject to annual approval.
- Under existing policies, projected operational income will remain well above expenses through FY29.
- Reimbursements to the GRA from the PRGT, SDR department, and RST contribute to income, though reimbursements from the PRGT are suspended until FY26.
- Improved non-lending income projections reflect recent upward shift in the medium-term SDR interest rate path and ongoing build-up of reserves.
- With the proposed FY24-26 budget, the SDR25 billion target for precautionary balances is expected to be reached in late FY24 or early FY25.

### FY23 developments, spending and outputs — selected figures
- FY23 country engagement non-travel spending expected to grow by $17 million (or 3 percent) compared to FY22; including travel, spending expected to rise by $72 million (13 percent) versus FY22.
- FY23 lending projected to include up to 33 operations (21 UCT and 5 precautionary), below the 40 operations envisaged at budget approval.
- RSF programs approved for five countries as of early March 2023.
- FY23 priorities: inflation, food and energy insecurity, trade spillovers, debt sustainability, Safeguard Policy Review, establishment of a Food Shock Window.
- FY23 spending (excluding travel) expected to increase across most workstreams.

### FY23 utilization and resource table highlights (Millions of U.S. dollars)
- FY23 resources, including carryforward: $1,396m, of which $1,371m allocated.
- Structural Budget / Proj. Outturn / Utilization (percent):
  - Gross Expenditures: 1,333 / 1,325 / 99
  - Personnel: 1,015 / 1,053 / 104
  - Travel: 80 / 55 / 69
  - Buildings/IT/Other: 223 / 217 / 97
  - Contingency: 15 / --
  - Receipts: (38) / (32) / 84
  - Net Expenditures: 1,295 / 1,293 / 100
- Memorandum items:
  - General Utilization (excl. OED/IEO): 1,207 / 1,215 / 101
  - Externally Funded CD: 230 / 185 / 81

### Personnel, travel, buildings, receipts — selective details and pressures
- Personnel:
  - Temporary pandemic-related positions wound down (from 135 to 88); approved staff positions rose slightly in FY23 supported by augmentation.
  - Vacancy rates declined intra-year; execution expected to exceed structural personnel budget by 4 percentage points.
- Travel:
  - A quarter of travel-related resources repurposed centrally in FY23 (relative to 50 percent in FY22).
  - Average airfare prices about 30 percent above pre-pandemic levels.
- Buildings, IT, other services:
  - Utilization projected to increase from 91 percent in FY22 to 97 percent in FY23.
  - Offsetting items include first in-person Annual Meetings in three years and increased operational costs in field offices.
- Receipts:
  - FY23 receipts projected to increase 24 percent relative to FY22, while remaining 17 percent below budget.

### Budget pressures (Box 2) — selected cost changes
- Travel: Average airfares close to 30 percent higher than pre-pandemic rates.
- IT Services: Recent contract renewals included a 6 percent increase.
- Other vendors: Recent contract renewal for creative solutions saw an 8 percent CPI-linked increase.
- Commercial data and library subscriptions: price increases of 8 to 12 percent in recent years (prior to pandemic 3 to 5 percent).
- Food services: Food costs increased by about 12 percent.
- Annual Meetings: Audio-visual labor cost increased by 28 percent.
- Medical Benefit Plan and other personnel benefits: index of medical costs risen by 5.2 percent in FY23.

### Medium-term outlook and operational priorities
- Extraordinary uncertainty from ongoing macro shocks and structural imperatives requires agility within the medium-term budget framework.
- Augmentation resources continue to be allocated during FY24 and FY25, with unwinding of extraordinary temporary resourcing.
- Overall staffing levels projected to level out during the three-year budget period at higher levels funded by augmentation.
- Current requests and informal enquiries total 42 new financial operations in FY24; about 40 percent of potential new operations would support members from the Sub-Saharan Region.

### Administrative and capital budget envelopes — selected table highlights (Millions of FY23 U.S. Dollars)
- FY24 structural budget gross administrative budget: 1,562 (proposal) / 1,510 (structural budget outturn est.)
- Net administrative budget: 1,295 / 1,293; proposal net administrative budget 1,328 for FY24, 1,348 for FY25, 1,348 for FY26.
- Receipts line items: (268) / (217) with proposal receipts (278) / (281) / (283) for FY24–FY26.
- Capital budget: 78 (proposal) / 91 (outturn est.) with subsequent years 108, 109, 103 as indicated.
- Carryforward: 93, 86; General carryforward est. 79, 72; FY24 general carryforward limit, 6 percent (7 percent in FY23).

### Evolution of Staff (Box 4) — allocated staff FTEs (excludes contractual positions)
- FY 18: 2,983
- FY 19: 2,983
- FY 20: 3,013
- FY 21: 3,108
- FY 22: 3,180
- FY 23: 3,270
- FY24 (Proj): 3,330
- FY25 (Proj): 3,332
- FY26 (Proj): 3,332
- Implication: Staffing increases from augmentation intended to support priority country-facing work; overall staffing expected to remain broadly level FY24–FY26.

### Augmentation — FY23-24 Key Deliverables (Box 7) — allocation and priorities
- About 70 percent of augmentation resources directed to strengthen direct country support, including about 25 percent for Fund-financed CD.
- Remaining funds support analytical and policy work, multilateral surveillance, and internal training.

Climate Change — FY24 Proposed Allocation
- About 20-25 country cases identified for in-depth climate work in FY23; about 30 countries expected to receive in-depth climate-related support in FY24.
- Coverage expected in 15-20 Article IVs and 10-15 RSFs in FY24.
- 4 FSAPs will have an in-depth climate component.
- Public Investment Management Assessment module rollout to 13 countries.

Digital Money — FY24 Proposed Allocation
- FY23 included 14 CBDC CD missions, 4 Article IVs and 3 FSAPs with in-depth digital money coverage.
- FY24 will increase Article IVs and FSAPs focused on financial stability risks from digital money adoption.
- Analytical focus: cross-border payments platforms, digital money and the international monetary system, macro-implications of crypto assets, supervision and regulation.

Macrofinancial Surveillance — FY24 Proposed Allocation
- Deepen integration of macrofinancial linkages and systemic risk analysis in bilateral surveillance.
- Internal review in FY23 covered progress in macro-financial integration in 71 2022 Article IV staff reports.
- Toolkit development and a 12-month pilot to enhance follow-up of FSAP findings and Article IV in 6 countries.

Fragile and Conflict Affected States (FCS) — FY24 Proposed Allocation
- Six CES finalized in FY23 to date, another 9 to be completed by end-FY24; additional 6-8 CESs anticipated in FY24.
- Three new resident representatives planned: Yemen, Comoros, and Papua New Guinea (one already recruited).
- 11 additional local economists (7 in AFR, 3 in MCD, 1 in APD).
- 3 Fund-financed long-term experts (LTX) in addition to 9 LTX financed by IMF02 in FY23.

Inclusion/Gender — FY24 Proposed Allocation
- Gender coverage expected in at least 13 country reports in FY24 (9 and 46 Article IV reports covered gender and inclusion respectively in FY23).
- Guidance for “light touch” and “deep dive” gender analysis issued to area departments in March 2023.

Capacity Development (CD) — FY23 and FY24 expectations
- FY23 CD spending expected to total $321 million (up from $264 million in FY22; FY19 pre-crisis level $354 million).
  - Fund-financed CD: $136 million (up 17 percent from FY22).
  - Externally financed CD: $185 million (up 26 percent).
- FY24 CD expectations:
  - A quarter of augmentation resources allocated to CD, focused on FCS (46 percent), climate (24 percent) and digital money (17 percent).
  - $7 million increase in externally financed CD.
  - CD share of Fund output expected to increase to 27.9 percent.
  - Fund- to externally financed CD balance expected to remain about 42/58.

### Breakdown of real changes by department — highlights (Table 8 / Table 9)
- Area departments: $27.5 million increase relative to FY23 structural budget, including $9.3 million from augmentation.
- Non-CD functional departments: $22.1 million increase including $5.7 million from augmentation.
- CD departments: $22.8 million increase, including $9.2 million from augmentation.
- Corporate functions: $19.9 million increase including $2.2 million from augmentation.
- Key figures from Table 8 (Fund-Financed Budget Adjustments, FY23–24):
  - Area total (structural budget): 333.5
  - Functional Non-CD total (structural budget): 188.9
  - Functional CD total (structural budget): 305.3
  - Support (structural budget): 317.7
  - Total (all departments, structural budget): 1,294.6
  - Grand total (Table 8): 1,294.6 (with Central adjustments reflected)
- Key figures from Table 9 (FTE Changes by Department, FY23–24):
  - Total (excl. donor financed): 2,993.1
  - Donor financed: 110.6
  - Grand Total: 3,103.7
  - FY23 Budget (total FTE): 2,993.1
  - FY24 Proposed Adjustments (selected totals preserved as in Table 9):
    - Structural increase of which Augm.: 54.1
    - Transitional: 78.3
    - of which Crisis: 88.0
    - New Structural Spending (FTE): 219.4
    - Structural Savings (FTE): 115.7
    - Net Structural Needs (FTE): 103.7
    - of which Augm. (FTE): 65.2
    - New Temporary Needs (FTE): 118.4

### FY23 capital spending and FY24 considerations (Table 10 & Box 10/11)
- FY23 Capital nominal spending estimated at $91.3 million (including $78.3 million direct capital spending and $13 million in cloud-related licenses).
- FY23 outturn projected at $91.3 million versus $165.7 million in available resources in FY23 (available over three cycles).
- Facilities FY23 spending estimated at $33.7 million; lifecycle projects compose two-thirds of spending.
- IT-intensive capital FY23 outturn projected at $44.6 million; Cloud license spending in FY23 expected to be $13.0 million.
- Cloud license costs rising: $9.5 million budgeted in FY22 to $20.3 million projected for FY24; additional $2.4 million through FY26 associated with ongoing projects.
- Actions: review and modification of cloud strategy; optimization and consolidation of cloud licenses; improved cost monitoring.
- Strengthening capital governance:
  - TRM established late FY22; ITD realignment initiated in FY23.
  - Three-year build-out milestones: Year 1 Realign & Build; Year 2 Enhance; Year 3 Embed.

### Proposed FY24 capital envelope — detailed highlights (Table 11)
- Proposed FY24 capital envelope: $108.3 million in current dollars including CCE (FY24 Proposed 108.3).
- Facilities (Building Facilities) FY24 proposed: $47.4 million (about $28.5 million higher than FY23 and $11.4 million above last year’s FY24 estimate).
  - Lifecycle replacements and repairs FY24 includes $33.7 million; approximately $20 million for large HQ1 building systems including:
    - chillers $3m
    - elevators $3m
    - generator $3m
    - electrical substations $12m
  - Audiovisual FY24 funding needs: $2.3 million.
  - New investments (total $12.8 million) include:
    - $5.5 million workplace redesign and HQ space configuration
    - $5 million field office opening/expansion/improvement
    - $2.3 million for building efficiency and sustainability investments
- IT-intensive capital including CCE: $60.8 million (compared to $59 million in FY23).
  - Cloud subscriptions rising to $20.3 million (CCE FY24).
  - IT capital investments reduced by $3.5 million to $40.5 million.
  - Key modernization projects total $18.0 million (Nexus, iData, iDW-related modules, HR Modernization).
  - Other new IT investments total $14.0 million in FY24, including $6.0 million in information security.
- Table 11 excerpted figures (selected rows):
  - Total (Capital + Cloud): FY23 77.9; FY24 Proposed 108.3; FY25 Indicative 110.1; FY26 Indicative 104.8.
  - Total (Capital): FY23 62.9; FY24 Proposed 88.0; FY25 Indicative 87.2; FY26 Indicative 80.8.
  - Building Facilities: FY23 18.9; FY24 Proposed 47.4; FY25 Indicative 51.0; FY26 Indicative 45.8.
  - Information Technology (Capital Investments): FY23 44.0; FY24 Proposed 40.5; FY25 Indicative 36.2; FY26 Indicative 35.0.
  - Cloud Capital Equivalent: FY23 15.0; FY24 Proposed 20.3; FY25 Indicative 22.9; FY26 Indicative 24.0.

### Risks (Section VII) — selected risk assessments and mitigations
- Core country activity (Increase in Country/Program Needs)
  - Residual risk assessment: Possible; Moderate.
  - Mitigations: Periodic risk updates, contingency planning, small central contingency reserve, risk-based resource allocation.
- Augmentation Implementation (delays in acquiring skillsets; escalation of demand)
  - Residual risk assessment: Possible; Somewhat major.
  - Mitigations: Human resources strategy, periodic review of priorities, cross-departmental coordination, accountability structures.
- Inflation Developments
  - Residual risk assessment: Possible; Somewhat moderate.
  - Mitigations: OBP monitoring of prices, internal reprioritization, use of central contingency.
- Staff Health and Safety
  - Residual risk assessment: Likely; Somewhat moderate.
  - Mitigations: Reprioritization at work program level, monitoring work pressure indicators, implementing IMF’s Mental Health Strategy recommendations.
- Modernization Projects
  - Residual risk assessment: Possible; Moderate.
  - Mitigations: Revamped governance framework for IT-intensive capital projects; portfolio review.
- CD Fundraising
  - Residual risk assessment: Possible; Somewhat major.
  - Mitigations: Diversify donor support; increase flexibility of donor resources; 2023 CD Strategy Review.
- Implementation of Hybrid Model
  - Residual risk assessment: Possible; Minor.
  - Mitigations: Best practices adoption; technology; flexible space options; facilities renovations; audiovisual investments.

### SECTION VIII. SUMMARY PROPOSAL FOR FY24 — selected proposals and decision items (Table 14)
- Net administrative budget: 1,410.9 (Millions of U.S. dollars)
  - General: 1,316.2
  - OED: 87.1
  - IEO: 7.6
- Annual augmentation: 28.7
- Overseas Annual Meetings: 7.0
- Receipts: 294.9
  - RST: 5.1
  - Externally financed: 250.5
- Gross administrative budget (excl. carryforward): 1,705.8
  - General: 1,609.5
  - OED: 88.6
  - IEO: 7.6
- FY23 Fund-financed carryforward (upper limit): 86.3
  - General: 72.4
  - OED: 13.3
  - IEO: 0.6
- Total gross available resources (upper limit): 1,807.7
  - General: 1,697.6
  - OED: 102.0
  - IEO: 8.2

Proposed Decisions (summarized)
- Decision 1. FY24 Administrative Budget
  - Approve net administrative expenditures for Financial Year 2024 totaling US$1,410.9 million, including US$28.7 million of the second tranche of augmentation resources:
    - Up to US$87.1 million for OED administrative expenditures
    - Up to US$7.6 million for IEO administrative expenditures
    - Up to US$1,316.2 million for other administrative expenditures of the Fund
  - Approve limit on gross administrative expenditures for Financial Year 2024 totaling US$1,807.7 million, including US$5.0 million in receipts linked to the RST and US$16.4 million of the second tranche of the real increase in space for externally funded CD.
  - Increase net and gross appropriations to reflect any underspend from FY23 up to specified carryforward limits (total up to US$86.3 million for Fund-financed carryforward).
- Decision 2. Capital Budget appropriations for Financial Year 2024: Total capital appropriations 108.3 (Millions of U.S. dollars)
  - Building Facilities: 47.4
  - Information Technology: 40.5
  - IT Cloud Capital Equivalent: 20.3
- Decision 3. Adopt revised methodology for calculation of the U.S. CPI-based Fund deflator and related transitional arrangements (as set out in Section B of Annex III of EBAP/23/23 (3/30/23)).

### Fund deflator — methodology update and application
- Previous projection-based methodology produced a net gap of about 5.2 percent of the net administrative budget for FY21-23.
- New methodology:
  - Calculate average CPI inflation over the calendar year using monthly U.S. CPI data (CPI-U).
  - Backward-looking and includes a one-time transitional adjustment to rebase the Fund deflator.
  - Transition factor aligns FY21-24 index with what it would have been had latest calendar year inflation been used starting in FY21.
- Transition factor and FY24 deflator:
  - Transition factor: -1.7 percentage points (multiplicative).
  - For FY24, average CY22 US CPI growth over CY21 is 8.0 percent.
  - With transition factor, FY24 Fund deflator is 6.2 percent.
  - FY24 deflator applied to the budget before augmentation and one-time Annual Meetings travel.
  - Augmentation-specific deflator: 7.9 percent (augmentation adjustment: -0.1 percentage points).
  - Overseas Annual Meetings deflator: 8.0 percent (no transition factor applied).
- FY24 Net Administrative Budget derivation (Table 3):
  - FY23 Budget (FY23 dollars) — Budget before augmentation/travel: 1,271.8
  - FY24 Deflator (percent) applied to base budget: 6.2
  - Resulting FY24 Budget (FY24 dollars) for base: 1,350.6
  - Augmentation (FY23 dollars): 22.8; FY24 Budget (FY24 dollars) augmentation: 53.3
  - Overseas Annual meetings FY23 dollars: 6.5; FY24 dollars: 7.0
  - Total FY23 total: 1,294.6 (FY23 dollars); FY24 total (FY24 dollars): 1,410.9

### Annex IV — Selected Policy Reviews and Evaluations in CY22-23 — selected points
- IMF Engagement with Small Developing States (SDS): MIP estimates total implementation costs of about 22 FTEs over FY23-FY28 (average of 3.8 FTEs a year).
- Safeguards Assessments 2022 Review: near-term transitional resource implications estimated at 2-3 FTEs.
- Proposal to Establish a Resilience and Sustainability Trust (33 active RSF programs): incremental direct costs $9-10 million (27-29 FTEs annually); trust operation and safeguards $5-6 million (16-18 FTEs annually); fully loaded gross costs about $18 million.
- ERM implementation: 9 FTEs already added in FY22-23; introductory training estimated at 0.5 FTE included in FY24 proposal.
- Selected FY24 budget and staffing table highlights:
  - Personnel (FY24 Prop. Budget): 1,239 (Millions)
  - Total Gross Expenditures (FY24 Prop. Budget): 1,706
  - Total Net Expenditures (FY24 Prop. Budget): 1,411
  - Travel (FY24 Prop. Budget): 147
  - Buildings and other expenditures (FY24 Prop. Budget): 304
  - Receipts (FY24 Prop. Budget): 295
  - Budgeted Staff FTE, Grand Total (FY24 Prop.): 3,330
  - Gross Administrative Spending by FTF (Total, FY24 Est. Resources 1/): 1,595.8 (Millions of FY23 U.S. Dollars)
  - Country Operations (FY24 Est. Resources 1/): 654.9 (Millions of FY23 U.S. Dollars)
  - Capacity Development (FY24 Est. Resources 1/): 217.5 (Millions of FY23 U.S. Dollars)
  - Total (FY24 Est. Resources 1/): 1,595.8 (Millions of FY23 U.S. Dollars)

*Source: ppea2023023 - FY2024–FY2026 Medium-Term Budget (selected excerpts).*

### EXECUTIVE SUMMARY

### EXECUTIVE SUMMARY

### Context and overview
- The FY24 budget is set against a complex global economic backdrop and heightened demand for Fund support.
- Membership faces an increasingly shock-prone world and needs to strengthen resilience to longer-term structural challenges.
- Strong sustained demand for Fund engagement leaves work pressures elevated.
- March 30, 2023

### FY24–FY26 budget framework
- The budget seeks to align resources with institutional priorities and emerging needs, recognizing the need for difficult trade-offs given sizable demands.
- Second of a three-phase augmentation is allocated.
- A management fee under the Resilience and Sustainability Trust is operationalized.
- Temporary pandemic-related resourcing continues to be unwound.
- The three-step augmentation framework foresees a real net administrative budget increase averaging 2 percent per year in FY23-25, returning to a flat real trajectory at the augmented level thereafter.

### FY24 administrative budget (proposed)
- Total: $1,411 million ($1,328 million in FY23 dollars).
- Key features:
  - Includes a 2 percent augmentation.
  - Includes a one-off $7 million allocation for overseas Annual Meeting travel.
  - Builds on continued reprioritization to meet critical needs in traditional areas, while supporting work toward a greener, digital, and more inclusive global economy through augmentation funding.
- Operational note: The Fund will need to remain agile, reprioritizing as needed, given rapidly evolving needs and high budget utilization.

### External funding and capacity development
- Externally funded spending is expected to continue to recover as in-person capacity development picks up.
- As part of the three-year increase in externally funded spending limit agreed in FY22, a 3 percent real increase in this limit (to $250 million, $236 million in FY23 dollars) is proposed, supporting the structural transformation agenda.

### FY24 capital budget (proposed)
- Total: $108 million.
- Key drivers:
  - Resumption of facilities-related investments, including hybrid workspace and field-based needs.
  - Continued stabilization of information technology investments.
  - Projected increase in cloud costs contributes to the higher overall capital envelope.

### Sustainability and fiscal anchor
- The FY24–26 budget is consistent with the Fund’s medium-term income position and precautionary balance target.
- The Fund maintains an expenditure-based anchor (real flat framework) for the budget, reflecting decade-long reprioritization and savings while supporting accumulation of precautionary balances.

### Risks and operational pressures
- Risks to the budget remain elevated, including:
  - Volatile inflation outlook.
  - Uncertainty around the demand for Fund programs.
  - Complex modernization-related needs.
  - High utilization and sustained work pressures.
- Workload and wellness indicators:
  - Average overtime remains high relative to pre-pandemic levels, particularly for senior staff.
  - Annual leave has recovered on average but remains low for some staff; projected annual leave remains below minimums for some and cumulative leave balances are stubbornly high.
  - A recent internal task-force report highlighted the impact of high sustained work pressures on staff wellness.
- Enterprise risk management continues to be strengthened.

*Source: ppea2023023 - EXECUTIVE SUMMARY (FY2024-FY2026 MEDIUM-TERM BUDGET), March 30, 2023.*

### 7.      Income and Budget (Figure

### 7.      Income and Budget (Figure

### Budget framework and income use
- The budget framework recognizes the need to avoid overdependence on extraordinary lending income.
- Net income above expenses supports accumulation of reserves and precautionary balances.
- The Fund’s total spending envelope, the capital budget, and the net administrative budget (i.e., gross expenditure minus receipts) are subject to annual approval.
- These decisions determine space for externally financed expenditures through receipts, including for CD.
- Shifts in salaries are decided independently, on an annual basis, under the rule-based compensation system in the Review of the Staff Compensation and absorbed within the budget ceiling both directly and through contributions to the Staff Retirement Plan (SRP) and the Medical Benefits Plan (MBP).

### FY24–26 dynamics and projections
- The FY24–26 budget remains consistent with a projected surplus in the Fund’s medium-term income position and continued progress towards the precautionary balance target.
- Under existing policies, projected operational income will remain well above expenses through FY29, reflecting high demand for Fund support.
- Reimbursements to the GRA from the PRGT, SDR department, and the recently created RST also contribute to income, though the former is suspended until FY26.
- Improved non-lending income projections reflect the recent upward shift in the medium-term SDR interest rate path and the ongoing build-up of reserves.
- With the proposed FY24-26 budget, the SDR25 billion target for precautionary balances is expected to be reached in late FY24 or early FY25.
- The Review of the Fund’s Income Position for FY23 and FY24 provides further analysis of the assumptions underpinning the projections.

### FY23 developments — shock environment and Fund response
- Russia’s invasion of Ukraine, the rise in inflation in major markets to levels not seen in 40 years, global financial tightening, and related cost-of-living and food security crises have set back post-pandemic recovery and introduced complex challenges for policy makers.
- Members face limited policy space, already high debt, increasingly difficult policy trade-offs to tackle inflation and address heightened macro-financial risk, slowing growth, and rising inequality.
- The Fund responded with financing, real-time granular advice, and enhanced CD support, including new tools under the RST and a Food Shock Window.
- FY23 is the first year of implementation of strategies supported by the three-phase augmentation; key deliverables for FY23 are broadly on track.
- Most net new positions in the five priority areas are expected to be filled by the end of FY23, though competition for key skillsets (particularly climate and digital money work) has been challenging.

### FY23 spending and outputs
- FY23 spending (excluding travel) is expected to increase across most workstreams, drawing on augmentation resourcing, the increase in external CD funding, and continued pandemic-linked crisis resourcing (at reduced levels relative to FY22).
- All figures are expressed in FY23 dollars unless otherwise indicated.
- Country engagement:
  - Non-travel spending on direct country operations is expected to grow by $17 million (or 3 percent) compared to FY22.
  - Including travel, spending is expected to rise by $72 million (13 percent) versus FY22.
  - FY23 lending is projected to include up to 33 operations, of which 21 UCT and 5 precautionary, below the projected 40 operations envisaged at budget approval.
  - RSF programs for five countries—Barbados, Costa Rica, Jamaica, Rwanda, and Bangladesh—have been approved as of early March 2023.
- Policy, analytic, multilateral surveillance and Fund financing:
  - Non-travel spending projected to increase by 1 percent over FY22 to about $2 million, with travel-inclusive increase of $14 million (3 percent).
  - FY23 priorities include work on inflation, food and energy insecurity, trade spillovers, debt sustainability, Safeguard Policy Review, and establishment of a Food Shock Window.
- Corporate functions:
  - Additional spending versus FY22 ($15 million or 4 percent) reflects higher utilization of allocated budgets, incremental temporary support for HR modernization, investments to strengthen Enterprise Risk Management, and establishment of the Office of Transformation Management.
- Externally financed CD spending (including travel) projected at about $185 million, below the $230 million budget, but $10 million above the level projected in the April 2022 budget.
- Personnel chargebacks are expected to exceed projection by about $1 million, about $4 million above FY22 levels.

### Projected utilization and FY23 resource table highlights
- Utilization of the net administrative budget is projected at 100 percent (101 excluding OED/IEO), versus 97.2 percent in FY22, and 99.3 percent pre-pandemic (FY20).
- Drivers of higher utilization: resumption of travel and in-person engagements, filling augmentation-related vacancies, increased building occupancy, higher use of facilities and IT administrative resources.
- About 1 percent in general carryforward resources ($8 million) is projected to be used in FY23.
- Table 1 excerpt (Millions of U.S. dollars, unless otherwise noted):
  - FY23 resources, including carryforward: $1,396m, of which $1,371m allocated.
  - Structural Budget / Proj. Outturn / Utilization (percent):
    - Gross Expenditures: 1,333 / 1,325 / 99
    - Personnel: 1,015 / 1,053 / 104
    - Travel: 80 / 55 / 69
    - Buildings/IT/Other: 223 / 217 / 97
    - Contingency: 15 / --
    - Receipts: (38) / (32) / 84
    - Net Expenditures: 1,295 / 1,293 / 100
  - Memorandum items:
    - General Utilization (excl. OED/IEO): 1,207 / 1,215 / 101
    - Externally Funded CD: 230 / 185 / 81

### Personnel, travel, buildings, receipts details
- Personnel:
  - Temporary pandemic-related positions allocated in FY21 wound down (from 135 to 88), but approved staff positions rose slightly in FY23 supported by augmentation.
  - Vacancy rates have steadily declined intra-year; execution expected to exceed structural personnel budget by 4 percentage points.
- Travel:
  - A quarter of travel-related resources were repurposed centrally to meet FY23 needs (relative to 50 percent in FY22).
  - Average airfare prices about 30 percent above pre-pandemic levels.
- Buildings, IT, and other services:
  - Utilization projected to increase from 91 percent in FY22 to 97 percent in FY23.
  - Underspend drivers: lower-than-budgeted facilities costs, earlier-than-budgeted phase-out of Covid protocols, higher translation chargebacks, and lower printing costs.
  - Offsetting items: first in-person Annual Meetings in three years, increased operational costs in field offices, higher matching under the Giving Campaign, and price pressures for IT, commercial data and library subscriptions, utilities, food prices and contract services.
- Receipts:
  - FY23 receipts projected to increase 24 percent relative to FY22, while remaining 17 percent below budget.
  - Shortfall drivers: lower-than-projected parking fees, publication income, HQ2 retail lease income and Concordia occupancy.
  - Partial offsets: higher-than-projected CD-related fees (3 percent above budget).

### Budget pressures (Box 2)
- Budget utilization: resumption of normal operations is unwinding temporary underspend in travel, buildings, and technology; structural resourcing expected to be fully utilized with some drawdown of carryforward resources.
- Cost pressures and recent changes:
  - Travel: Average airfares are close to 30 percent higher than pre-pandemic rates.
  - IT Services: Recent contract renewals for strategic partners included a 6 percent increase.
  - Other vendors: Recent contract renewal for creative solutions saw an 8 percent CPI-linked increase.
  - Commercial data and library subscriptions: price increases of 8 to 12 percent in recent years (prior to pandemic 3 to 5 percent).
  - Utilities: costs for electricity/gas will be readjusted in FY26.
  - Food services: Food costs increased by about 12 percent.
  - Annual Meetings: Audio-visual labor cost has increased by 28 percent.
  - Medical Benefit Plan and other personnel benefits: index of medical costs has risen by 5.2 percent in FY23.
  - Legal services: renewal of multi-year legal contracts will take place in summer 2023 (last renewal in 2020).

### Medium-term outlook and operational priorities (Section IV)
- The medium-term outlook is marked by extraordinary uncertainty from ongoing macro shocks (Russia’s invasion of Ukraine, pandemic restrictions, inflation including food and energy prices) and longer-term structural imperatives.
- The Fund will need to remain agile within the medium-term budget framework, reprioritizing activities and maximizing benefits of the hybrid work model.
- Augmentation resources will continue to be allocated during FY24 and FY25, with concurrent unwinding of extraordinary temporary resourcing, recognizing the one-off nature of underlying funding.
- Overall staffing levels are projected to level out during the three-year budget period at higher levels funded on a steady-state basis by the augmentation.
- Increased demand for financing:
  - Current requests and informal enquiries total 42 new financial operations in FY24, some of which may not materialize.
  - About 40 percent of potential new operations would support members from the Sub-Saharan Region.

### Administrative and capital budget envelopes (Table 2 highlights)
- Table 2 (Millions of FY23 U.S. Dollars) notes:
  - FY24 structural budget gross administrative budget: 1,562 (proposal) / 1,510 (structural budget outturn est.)
  - Net administrative budget: 1,295 / 1,293; proposal net administrative budget 1,328 for FY24, 1,348 for FY25, 1,348 for FY26.
  - Receipts line items: (268) / (217) with proposal receipts (278) / (281) / (283) for FY24–FY26.
  - Capital budget: 78 (proposal) / 91 (outturn est.) with subsequent years 108, 109, 103 as indicated.
  - Memorandum items: Carryforward 93, 86; General carryforward est. 79, 72; FY24 general carryforward limit, 6 percent (7 percent in FY23).
- Note: Changes in FY24 reflect RST-related receipts and rebasing of expected parking revenues.

_International Monetary Fund — FY2024-FY2026 MEDIUM-TERM BUDGET (Selected excerpts: Section 7 Income and Budget; Figures and Tables referenced)_;

### Box 4. Evolution of Staff

### Box 4. Evolution of Staff

### Key findings on staffing trends
- Budgeted staff positions have risen since the onset of the crisis, driven by temporary pandemic-related resourcing.  
- These one-off resources are now being unwound, albeit with underlying needs still significant in the context of the multiple shocks confronting the global economy, requiring significant reprioritization.  
- Augmentation-related staffing increases will support priority work in support of members’ structural transformation.  
- Overall staffing levels are expected to remain broadly level during the FY24-26 period.

### Allocated staff FTEs (excludes contractual positions)
- FY 18: 2,983
- FY 19: 2,983
- FY 20: 3,013
- FY 21: 3,108
- FY 22: 3,180
- FY 23: 3,270
- FY24 (Proj): 3,330
- FY25 (Proj): 3,332
- FY26 (Proj): 3,332

### Implications for operations and priorities
- Staffing increases from augmentation are intended to support priority country-facing work, including structural transformation efforts.  
- Unwinding of one-off pandemic-related staffing implies a need for reprioritization to align permanent resources with sustained demands from multiple global shocks.  
- Expected broadly flat staffing in FY24–FY26 suggests operational planning assumes resource stability rather than continued growth.

### Related operational context (work model and footprint)
- The Fund is transitioning to a post-pandemic hybrid work model that combines office presence and telework, with travel resuming and field offices returning to in-person phases.  
- Hybrid model budget implications (initial estimates and recurring impacts):  
  - Capital investments: $14 million in FY23 and $8.6 million in FY24.  
  - Recurring expenditures: $1.1 million in FY23 and $1.4 million in FY24.  
  - Estimated cost avoidance from accommodating staff growth within HQ footprint without external leasing: $13-16 million per year.  
  - Short-term efficiencies from lower building occupancy are expected to be offset by losses in parking revenue and higher food services costs given vendor contract structures.

*Source: ppea2023023 - Box 4. Evolution of Staff, FY2024-FY2026 Medium-Term Budget (excerpt).*

### Box 7. Augmentation—FY23-24 Key Deliverables

### Box 7. Augmentation—FY23-24 Key Deliverables

### Overview
- Implementation of the strategies supported by augmentation in FY23 is broadly on track, with continuing evolution with experience.
- About 70 percent of augmentation resources will be directed to strengthen direct country support, including about 25 percent for Fund-financed CD.
- Remaining funds will support analytical and policy work, multilateral surveillance, and internal training, which will be key to mainstreaming.

### Climate Change — FY24 Proposed Allocation
- Country engagements:
  - FY23 progress broadly on track; about 20-25 country cases identified for in-depth climate work through surveillance and RSF operations—more than planned originally, given strong demand for the RST.
  - Fiscal and statistics CD and training were successfully piloted.
  - In FY24, about 30 countries are expected to receive in-depth climate-related support, including coverage in 15-20 Article IVs and 10-15 RSFs.
  - Work is commencing on catalyzing climate finance in RSF countries.
  - The number of Article IVs in FY24 is lower than originally envisaged recognizing resource needs for RSF operations; this shift will affect coverage of adaptation/transition management for smaller and medium-sized countries in Article IV consultations (the same group that benefits primarily from support under the RSF).
  - Continued agility required as the number of RSF-related engagements is still uncertain.
  - The mitigation policies of the 20 largest greenhouse gas emitters will be covered in Article IVs over a 3-year period as planned.
  - 4 FSAPs will have an in-depth climate component, largely on account of climate stress testing.
  - CD delivery countries will focus on climate work, including further rollout of the Public Investment Management Assessment module to 13 countries to help identify reform priorities for climate responsive public investments and to support RSF operations.
- Other workstreams:
  - Climate issues figured prominently in the Fall 2022 WEO, GFSR, and REOs.
  - Foundational analytic work was presented in staff climate notes, departmental, policy and working papers.
  - Coordination efforts with key partners to leverage synergies.
  - Analytical work in FY24 will focus on climate financing and climate policy advice for fossil fuel exporters, green innovation and cross-border effects of different climate policies (carbon pricing vs. green subsidies).

### Digital Money — FY24 Proposed Allocation
- Key country engagements:
  - FY23 progress broadly on track.
  - In-depth coverage of central bank digital currency (CBDC) and other digital money, fintech, and crypto asset issues in 4 Article IVs and 3 FSAPs.
  - CD activities include 14 CBDC missions across all regions, two regional conferences on CBDC, 5 bilateral CD missions on regulatory issues, and 6 regional seminars on fintech, including cryptos.
  - In FY24, focus will remain on countries with potentially large spillovers and where digital money and fintech issues can become systemic, increasing the number of Article IVs and FSAPs, focused on financial stability risks from digital money adoption.
  - Several countries will receive in-depth CD and regional training on regulation and supervision of Fintech and digital money, reflecting continued strong demand.
- Other workstreams:
  - FY23 policy and analytical work includes fintech notes on regulation and supervision of crypto assets, digital currencies and energy consumption; papers on CBDC, crypto assets, and the impact of crypto assets on capital flow management; and the launch of a knowledge hub.
  - Staff collaborate closely with the World Bank, the BIS, the FSB, and other standard setting bodies.
  - In FY24, analytical work will focus on cross-border payments platforms, digital money and the international monetary system, macro-implications of crypto assets, supervision and regulation of digital assets and fintech, institutional frameworks for monitoring fintech developments, digital finance, CBDCs, fast payments, blockchain, asset tokenization, and FMIs.

### Macrofinancial Surveillance — FY24 Proposed Allocation
- Key country engagements:
  - In line with the 2022 Surveillance Guidance Note, focus is on deepening integration of macrofinancial linkages, systemic risk analysis and macro-prudential policy advice in bilateral surveillance, including through training and workshops.
  - In FY23, work includes an internal review of progress in macro-financial integration in 71 2022 Article IV staff reports.
- Other workstreams:
  - Bolster analysis of policy effects and sources of financial stability risks, toolkit development (e.g., growth-at-risk analysis, credit gap and credit cycle analysis, systemic risk analysis), training, and workshops.
  - A 12-month pilot to enhance the follow-up of FSAP findings and Article IV in 6 countries has been initiated.

### Fragile and Conflict Affected States (FCS) — FY24 Proposed Allocation
- Key country engagements:
  - Six country engagement strategies (CES) finalized in FY23 to date, with another 9 to be completed by end-FY24.
  - Staff are further integrating fragility and conflict drivers into Article IV consultations and policy advice, while CD in core areas continued.
  - In FY24, staff anticipate an additional 6-8 CESs.
  - Three new resident representatives will be placed in Yemen, Comoros, and one already recruited for Papua New Guinea.
  - 11 additional local economists (7 in AFR, 3 in MCD, and 1 in APD).
  - 3 Fund-financed long-term experts (LTX) to strengthen the Fund’s presence and CD delivery, in addition to the 9 LTX financed by IMF02 resources in FY23.
  - RCDCs serving FCS members will receive additional resources.
- Other workstreams:
  - Policy and analytical work included notes and working papers on conflict and terms of trade shocks, the food crisis, refugees, climate, and FCS.
  - The FCS Seminar Series will continue, including seminars and workshops, in collaboration with external partners (World Bank, OECD, UNHCR, WFP).
  - In FY24, staff will finalize development of a new FCS internal learning curriculum, organize seminars on FCS issues and integrate FCS-specific material in existing training.

### Inclusion/Gender — FY24 Proposed Allocation
- Key country engagements:
  - Gender and inclusion issues are expected to be covered in 9 and 46 Article IV reports, respectively in FY23.
  - Gender coverage is expected in at least 13 country reports in FY24.
  - FY23 capacity development events included external training, and bilateral technical assistance on gender-responsive budgeting and legal rights.
  - Gender outreach missions were held in Europe and Africa, with further outreach planned.
  - Internal training, seminars and peer learning on gender are proceeding apace.
  - A 30-institution strong network of external stakeholders and the new External Advisory Network will support analytical and operational efforts.
- Other workstreams:
  - Social safety nets were discussed in the October 2022 Fiscal Monitor and the April 2023 edition will cover the distributional implications of inflation.
  - Analytical and policy work focuses inter alia on the social impact of high energy and food prices, the global food crisis, pension spending and social safety nets, gender inequalities, gender and fintech, legal gender equality and gender gaps.
  - Building on the Gender Data Hub and the Inequality Toolkit, toolkits and datasets will be further developed in FY24.
  - Guidance for country teams on completing “light touch” and “deep dive” analysis of gender issues was issued to area departments in March 2023.
  - Additional guidance on gender and guidance on social spending is planned for FY24.

### CD Composition and Evolution (selected findings and FY24 expectations)
- FY23 CD spending:
  - Overall CD spending is expected to total $321 million by the end of FY23, up from $264 million in FY22 and approaching pre-crisis levels ($354 million, FY19).
  - This includes $136 million in Fund-financed CD, up 17 percent from FY22, and $185 million in externally financed CD, up 26 percent.
  - In-person engagement is ramping up rapidly across departments, even as virtual delivery remains a key modality.
- FY24 CD spending expectations:
  - As programmed, a quarter of augmentation resources have been allocated to CD, focused on FCS (46 percent), climate (24 percent) and digital money (17 percent).
  - The $7 million increase in externally financed CD will also support increases focused on structural transformation areas.
  - Share of Fund output: CD (including indirect costs) is expected to increase to 27.9 percent of total Fund’s outputs, close to pre-pandemic level.
  - Funding source: The balance of Fund- to externally financed CD will remain broadly stable, at about 42/58.
  - Regional distribution: CD is expected to increase in all regions, with a rising share of total CD in APD and MCD, reflecting in part increased allocation to FCS.
  - Workstreams: Revenue administration, tax and expenditure policy, PFM, debt, and financial supervision and regulation will remain the main areas in planned CD delivery, along with rising CD demand on macroeconomic frameworks and growing CD needs on digitalization, gender, climate change, and governance supported by increased resourcing.
- Carryforward policy:
  - The Board endorsed a carryforward policy for externally financed expenditures allowing the use of unutilized resources up to 3 percent of the externally financed budget in the following FY.

### Budget Context and Change by Output (selected figures and priorities)
- Country operations:
  - Bilateral surveillance and lending ($461 million) are proposed to increase by $17 million.
  - Spending expectations for Fund-financed direct CD, excluding Fund-wide overheads ($63 million) are projected to rise by $3 million.
  - FY24 budget comprises a second year of the increase in the limit on external funding to support enhanced CD related to the Fund’s structural transformation agenda, with an increase of $7 million (3 percent).
- Policy and analytics ($107 million) represent an increase of $2 million.
  - Policy work includes reviews of the Transparency Policy and Data Provision to the Fund.
  - On lending policy, work will focus on the Review of Precautionary Instruments and the Update on Crisis Response and Possible Ways Forward.
  - Other policy work includes initial stages of the Review of CD Strategy and workstreams on debt, comprising an update on the contractual approach and the Common Framework and a discussion on debt restructuring challenges.
  - Analytical priorities include geo-economic fragmentation; policy responses to commodity shocks; operationalizing the integrated policy framework (IPF); monetary-fiscal interactions in inflation booms; non-bank financial intermediaries; interplay between capital flows, CFMs and Crises; energy transition; climate challenges in fragile states; international coordination of asymmetric policy mixes (green subsidies/carbon pricing); and green innovation.
- Multilateral surveillance and global cooperation and standards ($178 million) will remain unchanged in net terms.
  - Work will focus on further analysis of economic interconnections and spillovers, including implications of policy shifts in systemic economies.
  - Global cooperation will continue the AML/CFT Program and G20 guidance/notes on macro implications of crypto and on collateral in Debt financing.
- Fund governance and finances ($168 million, unchanged in net terms).
  - Focus on concluding the 16th General Review of Quotas before mid-Dec 2023 and the Fund’s Governance Review.
  - On Fund finances, work will include the ex-post report on the use of SDRs following the 2021 General SDR Allocation and initial review of the Resilience and Sustainability Trust.
- Corporate functions ($393 million, unchanged in net terms).
  - Resourcing will support multi-year HR modernization follow-on to the 1HR program, implementation of recommendations of the Institutional Safeguards Review, broader work on diversity and inclusion, strengthening oversight and risk management, hybrid model implementation, field office connectivity, review of the communications strategy, and standup of the Office of Transformation Management.

*Source: Box 7. Augmentation—FY23-24 Key Deliverables (from the supplied IMF content).*

### 24.      Breakdown of real changes by department. (Figure 15 and Tables 8-9).

### 24. Breakdown of real changes by department. (Figure 15 and Tables 8-9)

### Area departments: objectives and budget impact
- $27.5 million increase relative to FY23 structural budget, including $9.3 million from augmentation.
- Departmental focuses:
  - AFR: program work, newly established instruments (RSF and the FSW under the RCF), enhanced engagement with FCS.
  - APD: respond to rising demand for Fund financing in the region; link work agenda to India’s G20 Presidency and Japan’s G7 chairmanship.
  - EUR: program work, including for countries affected by Russia’s war in Ukraine; analysis and surveillance on high inflation, lower growth, tighter financial conditions.
  - MCD: scale up engagement with FCS; respond to surge in demand and complexity for Fund programs, including the RSF.
  - WHD: provide financial support to help countries address vulnerabilities exposed by recent global developments; build resilience to external shocks through the RST; advise on optimal policy responses to multiple crises.

### Non-CD functional departments: objectives and budget impact
- $22.1 million increase including $5.7 million from augmentation.
- Departmental focuses:
  - FIN: complete RST operationalization; roll a new strategy to raise concessional resources; support the 16th General Quota Review; HR Modernization.
  - RES: lead analytical work on global economic challenges; develop modeling tools to assess policies (including in LICs), IPF issues, food security.
  - SPR: support countries with financial arrangements (including through the RSF); in-depth Article IV Consultation in augmentation areas; debt issues; step up engagement with various forums for global cooperation.
  - COM: leverage the Morocco AMs; center Fund messaging on Fund actions (e.g., RST, FSW); call for pragmatic multilateralism (including on debt, climate, and digital money); support for the 16th General Quota Review; undertake a Communication Strategy Update.

### CD departments: objectives and budget impact
- $22.8 million increase, including $9.2 million from augmentation.
- Departmental focuses:
  - FAD: advice to address global challenges amid largely exhausted fiscal buffers and tightened financing conditions; emphasize protecting vulnerable groups and robust policy frameworks.
  - ICD: center of innovation in training including on augmentation areas; use blended CD delivery; pursue integration of CD and surveillance via support to ADs and RCDCs in CD Strategy Review context.
  - LEG: help members strengthen resilience, including anticorruption and rule of law in FCS and sovereign debt; priorities include lending toolkit, the 16th GQR, ERM, ISR.
  - MCM: support members with persistent inflation, growing debt and financial stability risks; operationalize the IPF; enhance systemic risk analysis; deepen macrofinancial surveillance.
  - STA: focus on next generation of statistical manuals; data provision for Surveillance; G20 data gaps initiative; debt transparency; integration of CD with surveillance and lending, with focus on FCS.

### Corporate functions: objectives and budget impact
- $19.9 million increase including $2.2 million from augmentation.
- Departmental focuses:
  - CSF: calibrate work processes, services, and spaces to the hybrid work model; maintain staff safety; advance creative and language services support.
  - ITD: improve internal ITD governance to drive modernization projects; stabilize ITD’s new operating model; support hybrid work model; strengthen cyber security maturity; develop IT and Cybersecurity Strategy.
  - HRD: support institutional change from Institutional Safeguards Review and Staff surveys; HRD operations improvement through enhanced staff skills, stabilized processes and technology.
  - SEC: support completion of complex Fund-supported program and policy reviews; 16th GQR; Morocco AMs; modernization efforts; improve Board operations and internal governance.
  - TRM: build governance framework for IT-intensive capital projects with ITD; refine tools and processes for project/change management; strengthen business process reform for modernization.

### Key figures from Table 8 (Fund-Financed Budget Adjustments, FY23–24)
- Area total (structural budget): 333.5
- Functional Non-CD total (structural budget): 188.9
- Functional CD total (structural budget): 305.3
- Support (structural budget): 317.7
- Other center/units examples: OED 100.8; IEO 80.1; Central HR programs 13.5
- Total (all departments, structural budget): 1,294.6
- FY24 proposed adjustments (selected columns preserved as in Table 8):
  - Structural increase of which Augm. (total): 22.8
  - Transitional: 52.2
  - of which Crisis: 35.4
  - New Structural Spending: 80.0
  - Structural Savings: 46.8
  - Net Structural Needs: 33.2
  - of which Augm. 26.6
  - New Temporary Needs: 26.6
  - Crisis: 65.8 (offset in Central resources row as (65.8))
- Central resources: 6.6
- Grand total (Table 8): 1,294.6 (with Central adjustments reflected)

### Key figures from Table 9 (FTE Changes by Department, FY23–24)
- Total (excl. donor financed): 2,993.1
- Donor financed: 110.6
- Grand Total: 3,103.7
- FY23 Budget (total FTE): 2,993.1
- FY24 Proposed Adjustments (selected totals preserved as in Table 9):
  - Structural increase of which Augm.: 54.1
  - Transitional: 78.3
  - of which Crisis: 88.0
  - New Structural Spending (FTE): 219.4
  - Structural Savings (FTE): 115.7
  - Net Structural Needs (FTE): 103.7
  - of which Augm. (FTE): 65.2
  - New Temporary Needs (FTE): 118.4

### Augmentation resources (Figure 16)
- Augmentation resources allocated primarily to area and functional departments for bilateral surveillance and lending.
- Experts from functional departments will support country teams for Article IV consultations and program engagements.
- Funds to AFR and MCD mainly focus on FCS.
- Resources to FAD and MCM reflect roles in climate, digital money, and macrofinancial surveillance.
- Resourcing for support departments related to service provision to the additional workforce.

### FY23 Capital spending and FY24 considerations
- FY23 Capital nominal spending is estimated at $91.3 million, including $78.3 million in direct capital spending and $13 million in cloud-related licenses.
- This compares to $165.7 million in available resources in FY23 (available over three cycles) and an outturn of $89.8 million in FY22.
- Facilities:
  - FY23 spending estimated at $33.7 million, versus $72.6 million in FY23 available resources and a $21.5 million outturn in FY22.
  - Lifecycle projects compose two-thirds of spending (HQ1 furniture replacement completion, audio-visual updates, HQ1 restrooms and sidewalk upkeep, back-office equipment replacements).
  - About $12.5 million in lapsed funds projected largely due to pause in furniture replacement during the pandemic.
- IT-intensive capital:
  - FY23 outturn projected at $44.6 million versus available resources of $62.6 million in FY23 and a $60.0 million outturn in FY22.
  - Approximately $18.0 million in unused funding from prior years expected to be available in FY24.
  - Key Modernization projects: FY23 spending estimated at $20.8 million (compared to $36.0 million in FY22).
  - Other projects: FY23 outturn for other IT investments and infrastructure end-of-life projects estimated at $23.8 million (FY22: $24.0 million).
  - Cloud Capital Equivalent (CCE): Cloud license spending in FY23 expected to be $13.0 million, relative to $15.0 million budgeted and $9.5 million budgeted in FY22.
- Table 10 highlights (FY22 FY23 Est.):
  - Total Capital: FY22 89.8; FY23 (Est.) 91.3; Spending FY23 Avail. 165.7
  - Facilities: FY22 21.5; FY23 (Est.) 33.7; FY23 Avail. 72.6
  - IT Cloud Capital Equivalent: FY22 9.1; FY23 (Est.) 13.0; FY23 Avail. 15.0
  - Information Technology total: FY22 60.0; FY23 (Est.) 44.6; FY23 Avail. 62.6
  - Key Modernization Projects: FY22 36.0; FY23 (Est.) 20.8; FY23 Avail. 26.5
  - New Investments: FY22 9.7; FY23 (Est.) 11.8; FY23 Avail. 21.1
  - Infrastructure end-of-life: FY22 14.3; FY23 (Est.) 12.0; FY23 Avail. 15.0
  - Memorandum item IT Capital + Cloud: FY22 69.1; FY23 (Est.) 57.6; FY23 Avail. 77.6

### Cloud and MSP cost pressures (Box 10)
- Cloud license costs rising faster than programmed:
  - $9.5 million budgeted in FY22 to $20.3 million projected for FY24.
  - Additional $2.4 million through FY26 in future cloud costs associated with ongoing projects.
- Actions and targets:
  - Review and modification of the cloud strategy to optimize cloud use based on business value.
  - Better estimation of cloud costs and more informed decision-making.
  - Optimization and consolidation of cloud licenses where feasible.
  - More robust tools and processes to monitor costs and ensure financial sustainability.
- MSP costs: challenges include high MSP learning curve, high MSP staff turnover, price pressures from volatile IT market; effects on costs and schedules for ongoing projects and long-term support risks.
- Improvement options being explored: insourcing specialized/niche areas; strengthen focus on scope, SLAs and rates; strengthen MSP capacity and skills; outsource commoditized services; improve vendor management systems and tools.

### Strengthening capital governance for IT-intensive projects (Box 11)
- TRM established in late FY22 and ITD realignment initiated in FY23 to strengthen oversight and program skills.
- Three-year build-out milestones:
  - Year 1 - Realign & Build:
    - Update governance/oversight and central support framework; standardize roles & Fund-wide end-to-end procedures; reprioritize IT-intensive capital portfolio and restructure ITD.
  - Year 2 - Enhance:
    - Build out training and capacity to assist departments with modernization process; develop IT strategy and roadmap aligned with modernization agenda; deepen staff engagement and report trends on staff satisfaction.
  - Year 3 - Embed:
    - Review progress; set objectives for maturation of governance framework; ensure standardized change management and business process review; review training curriculum for program and change management.

*Italic: Source document: ppea2023023 - 24. Breakdown of real changes by department. (Figure 15 and Tables 8-9).*

### 28.      Proposed budget (Table 11). The proposed FY24 capital envelope is $108.3 million in

### 28.      Proposed budget (Table 11). The proposed FY24 capital envelope is $108.3 million in

### Proposed FY24 capital envelope — overview
- The proposed FY24 capital envelope is $108.3 million in current dollars including CCE, relative to $77.9 million in FY23 (Table 10).
- Drivers of the increase:
  - Resumption of facilities-related investments after a period of stabilization.
  - Expenses related to field offices.
  - Projected increase in cloud costs.
- Purpose of the envelope:
  - Support hybrid work and augmentation-related staff growth.
  - Replace aging building equipment.
  - Fund priority projects related to security and ongoing key modernization.

### Facilities (Building Facilities)
- FY24 facilities budget proposed: $47.4 million.
  - This is about $28.5 million higher than FY23 and $11.4 million above last year’s FY24 estimate.
- Rationale for prior reduced funding:
  - Improve sequencing of large building equipment and systems lifecycle replacements.
  - Reassess investments needed to accommodate hybrid work model and space needs.
- Risk mitigation:
  - CSF secured a construction cost analysis firm to validate and monitor project budgets and schedules in response to market volatility, inflation variability, and supply chain impacts.
- Lifecycle replacements and repairs:
  - FY24 includes $33.7 million for lifecycle replacements, of which approximately $20 million is for large and critical HQ1 building systems equipment replacements and refurbishments, including:
    - chillers $3m
    - elevators $3m
    - generator $3m
    - electrical substations $12m
- Audiovisual:
  - FY24 audiovisual funding needs: $2.3 million (lower than previous years due to build-up of previously appropriated funds caused by supply chain and pandemic-related delays).
  - AV investments remain critical to enable the hybrid work model and support increased broadcast service demands. Future AV funding needs expected to return to previous levels.
- New investments (total $12.8 million) include:
  - $5.5 million to continue workplace redesign and HQ space configuration to accommodate staff growth (avoiding external lease costs estimated at $13-16 million per year).
  - $5 million for field office opening, expansion and improvement supporting new programs and FCS strategy implementation.
  - $2.3 million for initial investments to improve building efficiency and advance sustainability goals.
- Reiteration: CSF has engaged a construction cost analysis firm to assist in validation and ongoing monitoring of project budgets and schedules.

### IT-intensive capital
- Proposed IT-intensive capital budget including CCE: $60.8 million, compared to $59 million in FY23.
  - Increase driven by cloud subscriptions rising to $20.3 million.
  - Offset by a $3.5 million reduction in IT capital investments to $40.5 million.
- Focus and funding approach:
  - Slightly lower upfront envelope for modernization, focusing on completing in-train projects and scoping new projects.
  - Any additional FY24 needs for HR modernization or other pipeline projects will be funded from available resources within the overall FY24 IT-intensive capital envelope.
  - Investments include information security, vendor and third-party risk management, data privacy, critical business systems, and lifecycle replacements.
- Cloud Capital Equivalent (CCE):
  - FY24 cloud costs projected to increase to $20.3 million.
- Key modernization projects (total $18.0 million):
  - Priority to implement ongoing modernization projects and ensure robust assessment of business needs, delivery capacity, and project readiness.
  - Nexus:
    - Replaces the Fund’s document management platform.
    - Final and largest release delayed from CY22 due to implementation partner staffing interruptions and design updates to reinforce security.
    - A separate Nexus-based project for automated dissemination of CD documents expected in FY24.
  - iData:
    - Modernizes economic data management and dissemination systems; replacing end-of-life legacy systems.
    - Project budget being updated to address higher-than-expected Managed Service Provider and software license costs; timeline and contingency measures also being updated.
  - iDW-related Modules:
    - First of five modules (supporting Teams and One-Drive) completed in FY23.
    - Other modules rescheduled to moderate modernization pace; two scoping projects expected to commence in FY24:
      - modern Intranet to improve internal communications and knowledge sharing.
      - document workflow and review system to support interdepartmental review transparency and comprehensiveness (will take into account Institutional Safeguards Review and associated OIA review).
    - Other modules (client-relationship management, document analytics) to be taken up as capacity constraints ease.
  - HR Modernization:
    - Work reset following lessons from the 1HR program; 1HR to close formally by end-FY23.
    - A three-stage effort by HRD to stabilize HR operations, simplify policies and procedures, and resume technology implementation.
    - Additional FY24 program needs will be funded from the FY24 IT-intensive capital envelope; regular updates in semi-annual modernization reports and OIA reviews.
  - Pipeline:
    - Additional transformation projects to be considered in FY24, including scoping for modernization of budget systems and revamp of imf.org.
- Other new IT investments total $14.0 million in FY24, including $6.0 million in information security.
  - Includes investments in core banking and SWIFT systems; procurement, third-party risk and vendor management platform; the EU Pillar Assessment.
- Modernization-related prerequisite projects: $0.3 million (second and final phase of Corporate Data Warehouse).
- Lifecycle replacements and IT infrastructure total $8.5 million for FY24:
  - Upgrades of network equipment, servers, storage capacity; upgrade of Fund laptops and conference room equipment to support hybrid work.
- Table 11 excerpted figures (selected rows):
  - Total (Capital + Cloud): FY23 77.9; FY24 Proposed 108.3; FY25 Indicative 110.1; FY26 Indicative 104.8.
  - Total (Capital): FY23 62.9; FY24 Proposed 88.0; FY25 Indicative 87.2; FY26 Indicative 80.8.
  - Building Facilities: FY23 18.9; FY24 Proposed 47.4; FY25 Indicative 51.0; FY26 Indicative 45.8.
  - Lifecycle replacements and repairs: FY23 12.7; FY24 Proposed 33.7; FY25 Indicative 33.4; FY26 Indicative 26.3.
  - HQ1/HQ2/Concordia: FY23 6.5; FY24 Proposed 31.4; FY25 Indicative 28.4; FY26 Indicative 21.3.
  - Audio-visual: FY23 6.2; FY24 Proposed 2.3; FY25 Indicative 5.0; FY26 Indicative 5.0.
  - New Investments (Facilities): FY23 4.1; FY24 Proposed 12.8; FY25 Indicative 15.6; FY26 Indicative 17.5.
  - Information Technology (Capital Investments): FY23 44.0; FY24 Proposed 40.5; FY25 Indicative 36.2; FY26 Indicative 35.0.
  - Key Modernization Projects (& pre-reqs): FY23 22.0; FY24 Proposed 18.0; FY25 Indicative 18.0; FY26 Indicative 18.0.
  - Cloud Capital Equivalent: FY23 15.0; FY24 Proposed 20.3; FY25 Indicative 22.9; FY26 Indicative 24.0.

### Medium-term facilities and IT investments
- Medium-term facilities investments include:
  - Funding to complete current HQ1 building systems lifecycle projects.
  - New workplace redesign investments to support staff growth and hybrid needs.
  - Initial planning and design work for HQ2 building renovation (HQ2 planning needed as building systems reach lifecycle replacement point).
  - Renovation of the auditorium in HQ1.
  - Meeting space to support virtual/hybrid missions.
  - Efforts to further the greening of Fund operations.
- IT-intensive investments:
  - Will be informed by forthcoming IT strategy and road-mapping process to provide structured assessment of business needs and delivery capacity.

### Risks (Section VII)
- OBP conducted an enterprise risk self-assessment for the FY24-26 Medium-term Budget (Table 13). Key risks and mitigations:
  - Core country activity (Budget allocation risk: Increase in Country/Program Needs)
    - Risk: Uncertainty in global economic and financial developments affecting demand for Fund services, including more complex UCT programs, expanded operations, RSF-related work, catalyzing private climate financing, and emergency lending (food shock window).
    - Mitigations: Periodic risk updates on program activity scenarios, incorporation of risk into budget planning, contingency planning, small central contingency reserve, and risk-based resource allocation.
    - Residual risk assessment: Possible; Moderate.
  - Implementation of strategies supported by augmentation (Budget execution risk: Augmentation Implementation)
    - Risk: Delays in acquiring/onboarding requisite skillsets; escalation of demand faster than absorption capacity.
    - Mitigations: Multipronged human resources strategy, periodic review of output priorities, coordination of cross-departmental work, transparent accountability structures.
    - Residual risk assessment: Possible; Somewhat major.
  - Inflation uncertainty (Budget execution risk: Inflation Developments)
    - Risk: Unexpected price increases in non-personnel categories (travel, services, economic data) could strain resources.
    - Mitigations: OBP monitoring of underlying prices, internal reprioritization, some use of central contingency.
    - Residual risk assessment: Possible; Somewhat moderate.
  - Staff health and safety (Budget execution risk: Staff Health and Safety)
    - Risk: High work pressures may affect health and execution of core activities; evidence in health and well-being scorecard.
    - Mitigations: Reprioritization at work program level, monitoring work pressure indicators, implementing IMF’s Mental Health Strategy recommendations.
    - Residual risk assessment: Likely; Somewhat moderate.
  - Travel (Budget execution risk: Travel)
    - Risk: Resumption of in-person missions and spikes in travel prices could exceed budgeted spending.
    - Mitigation: Prioritize travel consistent with essential in-person missions; OBP monitoring.
    - Residual risk assessment: Possible; Somewhat moderate.
  - Modernization Projects (Budget execution risk: Modernization Projects)
    - Risk: Delays, ramp-up pressures, cost overruns; legacy systems leading to fragmented processes and higher administrative costs.
    - Mitigations: Revamped governance framework for IT-intensive capital projects; IT-intensive capital portfolio review.
    - Residual risk assessment: Possible; Moderate.
  - CD Fundraising (Budget risk: CD Fundraising)
    - Risk: Competing donor demands and increased CD execution could reduce donor-funded CD resources over medium term.
    - Mitigations: Diversify donor support; increase flexibility of donor resources and funding vehicles; coordinated Fund-wide effort including Board; upcoming 2023 CD Strategy Review to address CD financing model.
    - Residual risk assessment: Possible; Somewhat major.
  - Implementation of Hybrid Model (Budget execution risk: Implementation of Hybrid Model)
    - Risk: Adaptation challenges, office space and tech constraints could reduce effectiveness and increase hybrid model costs.
    - Mitigations: Adoption of best practices; new technology; flexible space options; facilities renovations and capital investments including audiovisual infrastructure; optimization of in-person travel vs virtual engagement.
    - Residual risk assessment: Possible; Minor.

- Additional risk notes:
  - Key modernization project delays and gaps could lead to cost overruns, staff pressures, and unrealized productivity gains; historic underinvestment has left legacy systems not fit for purpose.
  - CD fundraising risks are elevated over the next two years for several RCDCs and thematic funds starting new funding phases, and for the Fund’s new transformation areas requiring additional resources.

*International Monetary Fund — FY2024–FY2026 Medium-Term Budget (excerpted content).*

### SECTION VIII. SUMMARY PROPOSAL FOR FY24

### SECTION VIII. SUMMARY PROPOSAL FOR FY24

### Proposal and Budget Structure
- Separate appropriations and expenditure ceilings are proposed within the total administrative appropriations for:
  - Offices of the Executive Directors (OED)
  - Independent Evaluation Office (IEO)
  - Other administrative expenditure in the Fund
- The capital budget comprises:
  - Building facilities
  - Information Technology
  - IT cloud capital equivalent (Cloud Capital Equivalent)

### Table 14 — Proposed Appropriations, Financial Year 2024 (selected figures)
- Net administrative budget: 1,410.9 (Millions of U.S. dollars)
  - General: 1,316.2
  - OED: 87.1
  - IEO: 7.6
- Annual augmentation: 28.7
- Overseas Annual Meetings: 7.0
- Receipts: 294.9
  - RST: 5.1
  - Externally financed: 250.5
- Gross administrative budget (excl. carryforward): 1,705.8
  - General: 1,609.5
  - OED: 88.6
  - IEO: 7.6
- FY23 Fund-financed carryforward (upper limit): 86.3
  - General: 72.4
  - OED: 13.3
  - IEO: 0.6
- FY23 externally financed carryforward (upper limit): 6.9
- Other Fund-financed transitional resources: 8.7
- Total gross available resources (upper limit): 1,807.7
  - General: 1,697.6
  - OED: 102.0
  - IEO: 8.2

### Capital budget (Decision 2)
- Total capital appropriations for Financial Year 2024: 108.3 (Millions of U.S. dollars)
  - Building Facilities: 47.4
  - Information Technology: 40.5
  - IT Cloud Capital Equivalent: 20.3

### Memorandum items (Table 14)
- Net administrative budget in mil. of FY23 dollars: 1,327.6
  - General: 1,238.5
  - OED: 82.0
  - IEO: 7.2
- Overseas Annual Meetings budget in mil. of FY23 dollars: 6.5
- Fund-financed carryforward, upper limit (in percent): 6.0 (General), 8.0 (OED), n.a. (IEO)
- Externally financed carryforward, upper limit (in percent): 3.0

### Proposed Decisions (summarized)
- Decision 1. FY24 Administrative Budget
  - A. Approve net administrative expenditures for Financial Year 2024 totaling US$1,410.9 million, including US$28.7 million of the second tranche of the augmentation resources:
    - Up to US$87.1 million for OED administrative expenditures
    - Up to US$7.6 million for IEO administrative expenditures
    - Up to US$1,316.2 million for other administrative expenditures of the Fund
  - B. Approve limit on gross administrative expenditures for Financial Year 2024 totaling US$1,807.7 million, including US$5.0 million in receipts linked to the RST and US$16.4 million of the second tranche of the real increase in space for externally funded CD linked to expanded work on the structural transformation agenda:
    - Sub-limits: US$102.0 million (OED), US$8.2 million (IEO), US$1,697.6 million (other)
  - C. Increase net and gross appropriations to reflect any underspend from FY23 as follows:
    - a. Amounts appropriated for net administrative expenditures for FY23 not spent by April 30, 2023 are authorized to be carried forward in a total amount of up to US$86.3 million:
      - US$13.3 million (OED), US$0.6 million (IEO), US$72.4 million (other)
    - b. Other increases reflecting OED excess underspend above individual office carryforward limits and IEO underspend above its carryforward limit, as determined in FY22 year-end closure
    - c. The gross administrative expenditures and sublimit on other administrative expenditures may be increased by up to US$6.9 million from any externally funded carry forward
- Decision 2. Capital Budget appropriations for Financial Year 2024 (see Capital budget figures above)
- Decision 3. Adopt a revised methodology for calculation of the U.S. CPI-based Fund deflator and related transitional arrangements as set out in Section B of Annex III of EBAP/23/23 (3/30/23)

### FY23 Budget Developments — Key operational points (Annex I / Box 1)
- Full structural budget utilization is expected.
- Use of 1 percentage point of general carryforward is projected in FY23.
- Across all department types, projected FTEs are expected to remain within the total budget.
- Allocation of temporarily funded positions has meant personnel execution above the structural budget.
- Travel spending has risen, with monthly volumes recovering quickly and ticket prices elevated.
- Lower-than-budget execution driven by:
  - facilities costs
  - phase out of Covid-19 safety protocols
  - improved translation chargebacks
  - IT services, and subscriptions and printing
- Security spending is projected to stabilize and return to pre-pandemic levels.
- Receipts are expected to improve relative to FY22 as externally funded CD, Concordia, HQ2 retail lease and Parking revenues recover.

### Fund Deflator — Rationale and methodology update (Annex III)
- Context and motivation:
  - Since FY21 the Fund deflator has been based 100 percent on US CPI.
  - The projection-based methodology used during FY21-23 did not provide an effective proxy under extraordinary inflation pressures and one-sided U.S. CPI forecast errors.
  - The net gap for FY21-23 totals about 5.2 percent of the net administrative budget; without corrective action, this gap effectively eliminates the augmentation approved in FY22.
  - Carryforward resources are largely allocated and are one-off; the gap is structural and requires a methodological fix.
- New methodology:
  - Calculate average CPI inflation over the calendar year using monthly U.S. CPI data (CPI-U) published by the U.S. Bureau of Labor Statistics.
  - The methodology is backward-looking (average CY preceding the budget) and includes a one-time transitional adjustment to rebase the Fund deflator.
  - Positive gaps between the Fund deflator and structural salary changes will be saved to cover future negative differentials.
- Transition factor:
  - The transition factor aligns the FY21-24 index with what it would have been had latest calendar year inflation been used starting in FY21.
  - The notional FY21-23 index using previous calendar-year CPI: 107.9
  - The projection-based CPI under the former methodology: 109.8
  - Transition factor: -1.7 percentage points (multiplicative, reflecting compounding)
- FY24 Deflator and adjustments:
  - For FY24, average CY22 US CPI growth over CY21 is 8.0 percent.
  - With the transition factor, the FY24 Fund deflator is 6.2 percent.
  - Application:
    - The FY24 deflator (6.2 percent) is applied to the budget before augmentation and one-time Annual Meetings travel.
    - Augmentation adjustment: -0.1 percentage points (required percentage difference in FY23 projection-based Fund deflator (4.8 percent) versus actual average CY21 US CPI (4.7 percent)), yielding an augmentation-specific deflator of 7.9 percent for the augmentation envelope.
    - Overseas Annual Meetings travel: no transition factor is applied; deflator remains 8.0 percent for that envelope.
  - Table 1 / Table 2 figures (selected):
    - Projection-based deflator FY21: 2.4; FY22: 2.3; FY23: 4.8
    - Actual CPI, latest CY FY21: 1.8; FY22: 1.2; FY23: 4.7
    - Required change (percent) FY21: -0.6; FY22: -1.0; FY23: -0.1
    - Projection-based deflator index FY21: 102.4; FY22: 104.8; FY23: 109.8
    - Actual CPI, latest CY index FY21: 101.8; FY22: 103.1; FY23: 107.9
    - Required change (percent) FY21: -0.6; FY22: -1.6; FY23: -1.7

### FY24 Net Administrative Budget derivation (Table 3)
- FY23 Budget (FY23 dollars) — Budget before augmentation/travel: 1,271.8
- FY24 Budget (FY23 dollars) — Budget before augmentation/travel: 1,271.8
- FY24 Deflator (percent) applied to base budget: 6.2
- Resulting FY24 Budget (FY24 dollars) for base: 1,350.6
- Augmentation (FY23 dollars): 22.8
  - FY24 Deflator for augmentation: 7.9
  - FY24 Budget (FY24 dollars) augmentation: 53.3
  - Augmentation (FY) values: 22.8; 26.6; 28.7 (as presented in Table 3)
- Overseas Annual meetings:
  - FY23 dollars: 6.5
  - FY24 Deflator applied: 8.0
  - FY24 dollars: 7.0
- Total:
  - FY23 total: 1,294.6 (FY23 dollars)
  - FY24 total: 1,327.6 (FY23 dollars)
  - FY24 total (FY24 dollars): 1,410.9

*Source: ppea2023023 - SECTION VIII. SUMMARY PROPOSAL FOR FY24*

### Annex IV. Selected Policy Reviews and Evaluations in CY22-23

### Annex IV. Selected Policy Reviews and Evaluations in CY22-23

### Surveillance: Selected evaluations and policy reviews
- Independent Evaluation Office – IMF Engagement with Small Developing States (SDS) – May 2022; Implementation Plan (IP) (para 8) – March 2023
  - Recommendations entailed initial set-up costs and longer-term increases in budgetary resources.
  - The MIP estimates total implementation costs of about 22 FTEs over the period of FY23-FY28 (average of 3.8 FTEs a year).
  - Some items not originally included in the work program (e.g., update to SGN in near-term and medium-term review) will be funded through reprioritization.
- Modification to the Transparency Policy – June 2022
  - Proposes targeted modification to allow automatic deletion of specific elements of the Debt Sustainability Framework for Market Access Countries in specific circumstances prior to publication.
  - No cost implications were identified.
- Review of the Fund's Policy on Multiple Currency Practices - Proposals for Reform (para 33) – July 2022
  - New policy not expected to have significant resource implications in the steady state; transitional resources may be needed for initial operationalization.
- IMF Strategy Toward Mainstreaming Gender (para 53-59) – July 2022
  - Fund’s net increase in work on gender expected to remain within the resourcing agreed under the budget augmentation framework.
- Elements of Effective Policies for Crypto Assets – February 2023
  - Puts forward nine core elements to inform a comprehensive, consistent, and coordinated policy framework for crypto assets.
  - No resources implications were identified.
  - Fund work on crypto assets is expected to remain within the agreed budget augmentation framework.
- Review of the Role of Trade in the Work of the Fund (para 56) – March 2023
  - Does not provide quantified cost estimates; states recommendations to be achieved through reprioritization within the existing budget envelope.
- Review of the Implementation of the 2018 Framework for Enhanced Fund Engagement on Governance – (para 47) April 2023
  - Bulk of cost of proposed framework improvements will be covered by savings on pandemic-related governance safeguards and externally funded CD.
  - Gross additional cost is estimated at 1 FTE and is expected to be met through reprioritization within the overall budget envelope.
- Review of Climate Macroeconomic Assessment Program (CMAP/CCPA Pilots) – To be discussed April 2023
  - Proposes to deliver streamlined CMAPs only in exceptional cases and to scale up targeted climate CD, while coordinating with the World Bank.
  - No resources implications were identified.

### Lending, facilities, and crisis response reviews
- Review of the Fund's Sovereign Arrears Policies and Perimeter – March 2022
  - Comprehensive review proposed improvements to and clarifications of the framework.
  - No resources implications were identified.
- Proposal for a Food Shock Window – September 2022
  - Proposes a time-bound food shock window under the Rapid Financing Instrument (RFI) and the Rapid Credit Facility (RCF) for emergency support to members facing urgent balance-of-payments needs from a food price shock.
  - No resources implications were identified.
- Independent Evaluation Office - The IMF’s Emergency Response to the COVID-19 Pandemic — March 2023
  - Recommends developing special policies and procedures that could be quickly activated to address needs and circumstances of global crises and reinforcing institutional preparedness to deal with global crises and other large shocks.
  - The forthcoming MIP will discuss operationalization and costing of the evaluation recommendations.
- Temporary Modifications to the Fund’s Annual and Cumulative Access Limits – March 2023
  - Proposes temporary changes to limits on access under the Fund’s General Resources Account (GRA) and discusses possible changes for the Poverty Reduction and Growth Trust (PRGT).
  - No resources implications were identified.
- Changes to the Fund’s Financing Assurances Policy in the Context of UCT Financing – March 2023
  - Proposes policy changes to enable the Fund to proceed with UCT financing in conditions of exceptionally high uncertainty.
  - No resources implications were identified.

### Safeguards, resources, and trust funding
- Safeguards Assessments 2022 Review of Experience (para 60) – December 2022
  - Found the Safeguards Policy continues to be appropriate and proposed refinements.
  - Proposals have primarily near-term transitional resource implications estimated at 2-3 FTEs.
  - Potential structural resource needs, including those from the recently established RSF, will be considered in future budget discussions as demand becomes clearer.
- Review of the Adequacy of RST Resources and PRGT Resources – September 2022
  - Sufficient resources were raised for the RST to start lending operations.
  - For the PRGT, loan resources attained two-thirds of target, while only one-third of the subsidy resources target was achieved, leaving a substantial shortfall.
  - Transitional resources will be provided in the FY24 budget to begin implementation of an expanded fundraising strategy.
- Proposal to Establish a Resilience and Sustainability Trust (para 56) – April 2022
  - Discussed steady-state costs based on 33 active RSF programs.
  - Incremental direct costs for operations would be in the range of $9-10 million, or 27-29 FTEs annually.
  - Cost to operate the Trust and safeguard its resources was estimated at $5-6 million, or 16-18 FTEs annually.
  - Fully loaded gross costs at about $18 million.

### Capacity Development (CD) and related evaluations
- Independent Evaluation Office - The IMF and Capacity Development (Executive Summary and para 29) – September 2022; Management Implementation Plan — (forthcoming)
  - Many evaluation recommendations are already included in the medium-term budget (e.g., rollout of CDMAP, CD Strategy Review).
  - Draft MIP assesses near-term resource implications to be manageable; medium-term implications to be discussed as part of the FY2025-26 budget.
  - Main actions—conducting the strategy review and developing a subsequent CD Guidance Note—are covered by the current budget. Other short-term actions will be absorbed within existing departmental budgets.
  - Other recommendations would be quantified as part of the review and considered in the broader budget context.

### Internal support, governance, and risk management reviews
- Review of Institutional Safeguards – June 2022; Implementation plan (IP) – (para 45) December 2022
  - Found Fund’s safeguards mechanisms robust with opportunities to bolster data and analytical integrity frameworks and strengthen the internal disputes system.
  - IP noted budget implications will be incorporated in the FY24 and future budgets through reprioritization; trade-offs to be discussed with Management in the context of Accountability Framework and Board’s Work Program.
- Enterprise Risk Management (ERM) Policy, Framework, Road Map and Risk Tolerance – (para 139). December 2022
  - Noted implementation of the ERM framework will entail significant resource costs.
  - Additional staff in ORM: 9 FTEs already added in FY22-23.
  - Introductory training estimated at 0.5 FTE across the Fund; the latter included in the FY24 budget proposal.
  - Over time, pilot programs will further clarify costs to departments on RCSAs and DRSA and will be taken up in future budget discussions.

### Key budget and staffing figures from tables and summaries
- MIP estimates total implementation costs of about 22 FTEs over FY23-FY28 (average of 3.8 FTEs a year).
- Safeguards proposals: near-term transitional resource implications estimated at 2-3 FTEs.
- ERM implementation: 9 FTEs added in FY22-23; introductory training estimated at 0.5 FTE.
- Proposal to Establish a Resilience and Sustainability Trust (33 active RSF programs):
  - Incremental direct costs: $9-10 million, or 27-29 FTEs annually.
  - Trust operation and safeguards: $5-6 million, or 16-18 FTEs annually.
  - Fully loaded gross costs: about $18 million.
- Table highlights (selected exact figures from statistical tables):
  - Personnel (FY24 Prop. Budget): 1,239 (budget column shows "1,239" under FY24 Prop. Budget).
  - Total Gross Expenditures (FY24 Prop. Budget): 1,706.
  - Total Net Expenditures (FY24 Prop. Budget): 1,411.
  - Travel (FY24 Prop. Budget): 147.
  - Buildings and other expenditures (FY24 Prop. Budget): 304.
  - Receipts (FY24 Prop. Budget): 295.
  - Budgeted Staff FTE, Grand Total (FY24 Prop.): 3,330.
  - Gross Administrative Spending by FTF (Total, FY24 Est. Resources 1/): 1,595.8 (Millions of FY23 U.S. Dollars).
  - Country Operations (FY24 Est. Resources 1/): 654.9 (Millions of FY23 U.S. Dollars).
  - Capacity Development (FY24 Est. Resources 1/): 217.5 (Millions of FY23 U.S. Dollars).
  - Multilateral Surveillance - Multilateral Surveillance (FY24 Est. Resources 1/): 92.7 (Millions of FY23 U.S. Dollars).
  - Fund Governance and Fund Finances (FY24 Est. Resources 1/): 162.7 (Millions of FY23 U.S. Dollars).
  - Corporate Functions (FY24 Est. Resources 1/): 397.8 (Millions of FY23 U.S. Dollars).
  - Total (FY24 Est. Resources 1/): 1,595.8 (Millions of FY23 U.S. Dollars).
- Capital expenditures table (selected figures):
  - FY 23 New appropriations (51): 18.9, 44.0, 15.0, 0.0, 77.9 (by column as shown).
  - FY 24 New appropriations (Proposed) (56): 47.4, 40.5, 20.3, 0.0, 108.3 (by column as shown).
  - FY 23 Expenditures (Est.) (53): 33.7, 44.6, 13.0, 0.0, 91.3 (by column as shown).
  - FY 23 Remaining funds (Est.) (55): 26.4, 18.0, 0.0, 0.0, 44.4 (by column as shown).

*Annex IV. Selected Policy Reviews and Evaluations in CY22-23 (from the FY2024-FY2026 Medium-Term Budget document).*

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_Source: https://www.imf.org/-/media/files/publications/pp/2023/english/ppea2023023.pdf_