## FY2023—OUTPUT COST ESTIMATES AND BUDGET OUTTURN (ppea2023045)

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### EXECUTIVE SUMMARY — FY23 context and Fund response
- Global environment: spillovers from Russia’s invasion of Ukraine, high inflation, global financial tightening, and intensified geopolitical fragmentation increased uncertainty and raised demand for Fund support.
- Fund response: provided financing, granular policy advice, and enhanced capacity development (CD) support; launched operations supported by the Resilience and Sustainability Trust (RST).
- Strategic priorities under phased augmentation: climate change, digital money, macrofinancial surveillance, fragility, and inclusion; FY23 focused on foundational work, development of core tools, analytical capacity, and pilot engagements.

### EXECUTIVE SUMMARY — Budget utilization, augmentation, and workload
- Total net administrative expenditures (outturn): $1,293 million.
- Structural budget utilization: 100 percent (101 percent excluding OED/IEO).
- General carryforward resources used in FY23: $8 million.
- First year of phased budget augmentation implemented: $21.8 million first phase; projected return to a flat real envelope starting in FY26.
- Drivers of higher utilization: increased in-person engagements; rising prices including travel; progress in filling vacancies; increased building occupancy; higher use of contractual services.
- Reprioritization and crisis funding (FY21–FY23):
  - Crisis positions: 128 FTEs in FY21; 135 FTEs in FY22; 88 FTEs in FY23.
- Work pressures:
  - Average overtime above pre-pandemic levels, particularly for senior staff; B-level staff across most departments exceeded the 15 percent threshold.
  - Annual leave rates recovered relative to earlier pandemic periods but demand remained high, contributing to stress.

### EXECUTIVE SUMMARY — Key outputs and country engagement spending
- Country engagements (excluding travel) rose 8 percent ($44 million) year-on-year.
- Including travel, country engagements increased 18 percent ($96 million).
- Approved programs in FY23: 38 (33 UCT including precautionary; 7 emergency).
  - FY22 comparators: 18 UCT and 5 emergency operations.
- Spending on UCT operations excluding travel rose 16 percent relative to FY22 ($14 million).
- FY23 RST delivery costs estimated at $8 million; FY23 trust management spending was $4 million.
- RSF became operational in October 2022 with 5 pilot programs approved in FY23.
- Bilateral surveillance:
  - Spending on country surveillance excluding travel decreased by 3 percent ($6 million) relative to FY22.
  - Bilateral outputs in FY23: 117 Article IV consultations completed; 8 FSAPs completed (FY22: 126 Article IVs; 11 FSAPs).

### EXECUTIVE SUMMARY — Capacity development (CD)
- Departmental CD spending (direct spending and departmental overheads, excluding Fund-wide overheads): $337 million, up 31 percent.
- Fund-financed CD spending: $148 million (43 percent of departmental spending), up 23 percent relative to FY22.
- Externally funded CD spending: $189 million (57 percent), up 37 percent versus FY22; represented 85 percent of the $222 million available envelope.
- Execution of external resources: 85 percent, a 27 percent increase versus FY22.
- Including Fund-wide overheads, CD represents 29 percent of Fund spending; fully loaded Fund-financed CD represents 56 percent of total CD spending and externally funded CD 44 percent.

### EXECUTIVE SUMMARY — Spending per country and by income level
- Average direct country spending excluding travel (internal and external resources): $2.3 million, increased by 7 percent relative to FY22.
- Including travel, average direct country spending: $2.6 million, increased 17 percent.
- Excluding externally funded CD, average direct country spending: $1.8 million, increased 4 percent.
- Average spending for surveillance countries: $1.2 million (increase of 3 percent relative to FY22).
- For countries with Fund arrangements, year-on-year increase in average spending: 13 percent.
- By income group (average direct spending excluding travel):
  - G7 countries: decreased by about 25 percent to $1.9 million.
  - Emerging economies: increased by 9 percent to $2.3 million.
  - Low-income developing countries: rose 10 percent to $3.1 million.

### EXECUTIVE SUMMARY — Capital and IT
- Capital spending in FY23: $96 million.
- Sixty percent of capital spending focused on IT-intensive projects and licenses.
- Capital priorities: post-pandemic resumption of facilities-related investments to support hybrid work and staff growth; stabilization of IT-intensive capital investments.
- Cloud license (Cloud Capital Equivalent) expenses: $13 million in FY23 (budgeted $15 million); cloud license expenses continued to rise steadily.

### EXECUTIVE SUMMARY — Outputs, staffing, and workload measures
- In-person missions in FY23: 4,528 missions to 196 countries.
- Article IV consultations completed in FY23: 117.
- FSAPs completed in FY23: 8.
- Approved lending operations in FY23: 38.
- Externally financed spending in FY23: $195 million.
- Allocated staff FTEs and crisis position evolution:
  - Crisis positions fell from peaks in FY21–FY22 to 88 FTEs in FY23.

---

### MULTILATERAL SURVEILLANCE AND GLOBAL STANDARDS — FY23 focus and spending
- Flagship publications in FY23 mainly focused on inflation, food and energy insecurity, trade spillovers, and debt sustainability.
- Spending on multilateral surveillance excluding travel increased by 2 percent compared to FY22.
- FY23 direct spending excluding travel for Multilateral Surveillance and Global Standards summarized (millions of FY23 U.S. dollars). Sources: TRACES, TIMS, iBBIS, and staff estimates.

### DIRECT SPENDING PER COUNTRY AND REGIONAL PATTERNS
- Spending increased for all country groups, driven by growth in number and complexity of lending programs and CD delivery.
- Vulnerable countries: spending remained high, reflecting a shift to UCT arrangements and provision of CD services.
- CD delivery drove up average spending on FCS and small developing states.
- Most regions saw an increase in spending on direct country engagements, particularly through CD delivery and lending operations.

### GLOBAL COOPERATION, POLICY, ANALYTICAL, AND GOVERNANCE WORK
- Global cooperation and standards: FY23 direct spending excluding travel remained broadly unchanged relative to FY22; ramp-up of coordination on climate change, digital money, and fragility.
- Policy-related spending excluding travel increased by 4 percent.
  - Key work: IMF Strategy Toward Mainstreaming Gender; Review of the Implementation of the 2018 Framework for Enhanced Fund Engagement on Governance; Review of Institutional Safeguards.
  - Quinquennial CD Strategy Review initiated, expected to be completed in 2025.
- Analytical work excluding travel rose by 8 percent versus FY22; main focuses: impact of food and energy crisis, inflation, debt vulnerabilities, and foundational work across priority areas.
- Fund Governance/Finances spending excluding travel remained unchanged relative to FY22; activities included operationalization of the RST, establishment of the Food Shock Window, work on the 16th General Review of Quotas, and mobilization for PRGT concessional capacity.
- Corporate functions excluding travel rose $22 million (6 percent) over FY22; central spending totaled $19 million. Receipts of $17 million mainly included Trust Fund Management Fees, Fund-sponsored sharing agreements, and publication sales.

### AUGMENTATION-SUPPORTED PRIORITY TOPICS — direct Fund-financed spending
- Externally financed spending on highlighted priority topics: about $30 million (about 15 percent of external spending).

- Debt:
  - Direct spending: $45 million (broadly stable).
  - Focus: debt sustainability, restructuring, statistics, debt transparency, new DSA for market access countries, rollout of the Sovereign Risk and Debt Sustainability Framework (SRDSF) including natural-disaster and exhaustible-resource modules.

- Governance/Corruption:
  - Direct spending estimated at $21 million in FY23, an increase of $2 million from FY22.

- Climate change:
  - Real direct spending: $44 million in FY23, a $19 million increase from FY22.
  - Article IVs covering climate change in-depth: 15 (5 discussed mitigation for large emitters; 10 addressed adaptation and/or transition management).
  - Six FSAPs included a climate component; 5 RSF arrangements approved by the Board.

- Digital money:
  - Estimated spending: $16 million, an increase of $6.6 million in FY22.
  - Activities: CBDCs analytic and legal frameworks, payment systems modernization, fintech and crypto-assets oversight/regulation, CD on CBDC design, and 9 deliveries of two new external training courses on DM issues.
  - Article IVs and FSAPs covering digital money: 4 Article IVs and 6 FSAPs.

- Macrofinancial surveillance:
  - FY23 direct spending on core financial work: $96 million, an increase of $14 million from FY22.
  - Focus: monitoring rising financial vulnerabilities, corporate sector stress, spillovers from the war in Ukraine, deepening macrofinancial analysis, development of tools and how-to notes.

- Inclusion and Gender:
  - Spending totaled $16 million, an increase of $2 million from FY22.
  - Activities: country analysis on pandemic impacts, gender, labor market and inequality, social spending; toolkits and datasets; gender outreach missions.

- Fragile and Conflict-affected States (FCS):
  - Overall direct spending on the 37 FCS countries: $93 million in FY23 (increase of $6 million); $103 million including travel.
  - Direct CD spending, mostly externally financed: increased to $37 million from $30 million.
  - Non-CD FCS spending: $56 million, 60 percent associated with Fund lending.
  - FY23 CES completions: 6 (South Sudan, Guinea-Bissau, Zimbabwe, Somalia, Yemen, Iraq).
  - Staff Guidance Note on FCS Strategy implementation published March 2023.

### BOX 4 — FY23 augmentation-supported work (high-level)
- About 70 percent of augmentation resources allocated in FY23 went to strengthen country support, including about 25 percent for CD delivery.
- Climate Change: 15 Article IV country engagements with in-depth coverage; 6 FSAPs with climate components; 5 RSF arrangements.
- Digital Money: 4 Article IVs and 6 FSAPs covered DM/fintech/crypto; CD on CBDC and payment systems; 9 deliveries of new external training courses.
- Macrofinancial Surveillance: integration into bilateral surveillance; progress assessment in 71 Article IVs; piloted FSAP follow-ups in six Article IVs; development of tools (growth-at-risk, credit gap/cycle, sovereign-bank nexus).
- Fragile and Conflict-Affected States: CES implementation on track; strengthened field presence; policy and analytical work on conflict, terms-of-trade shocks, food crisis, refugees, and climate.
- Inclusion/Gender: Board-approved Strategy on mainstreaming gender (July 2022); 2 Article IVs covered in-depth gender issues; 20 country documents covered gender more lightly; 44 Article IVs addressed inclusion.
- Corporate Departments: about 16 percent of augmentation resources to support HR, corporate services, IT, communications, and safe deployment of personnel in field offices.

### SPENDING BY DEPARTMENT AND OUTPUTS
- Selected patterns:
  - CD departments (FAD, ICD, LEG, MCM) saw increased CD spending, boosted by external resources.
  - Area Departments: spending slightly increased versus FY22 and FY19, reflecting support to members with protracted challenges and increased complexity of financing arrangements.
  - Functional non-CD Departments: increased spending on policy and analytical work, RST implementation, and Fund governance.
  - Support Departments: spending broadly stable as a share of total with a slight increase versus FY22.
- OED/IEO:
  - OED spending fell by about $2 million due to high turnover.
  - IEO spending was $1 million below last year driven by recruitment delays and limited travel.

---

### SECTION III — SPENDING BY INPUTS: Major budget categories overview
- Personnel spending: about 78 percent of gross administrative spending (slight decline from FY22).
- Travel spending: rose with return to in-person engagement and airfare price increases.
- Buildings and IT: transition to hybrid work stabilized in FY23.
- Table 2 summary (FY22–23, Millions of FY23 U.S. dollars):
  - Gross expenditures: FY22 Outturn 1,530; FY23 Outturn 1,562.
  - Personnel: FY22 Outturn 1,126; FY23 Outturn 1,165; FY23 Total personnel spending reported elsewhere as $1,182 million.
  - Travel: FY22 Outturn 140; FY23 Outturn 122 (with business travel spending $46 million).
  - Buildings and other expenses: FY22 Outturn 250; FY23 Outturn 260.
  - Receipts: FY22 Outturn -258; FY23 Outturn -268.
  - Net expenditures: FY22 Outturn 1,272; FY23 Outturn 1,295.
  - General Net Admin Budget: FY22 Budget 1,184; FY22 Outturn 1,163; FY23 Budget 1,207; FY23 Outturn 1,216.
  - Total net available resources: FY22 Budget 1,382; FY22 Outturn 1,237; FY23 Budget 1,396; FY23 Outturn 1,294.

### PERSONNEL — FY23 specifics
- Total personnel (staff and contractual) spending: $1,182 million, representing 103 percent of the structural budget, supported by temporary carryforward resources.
- Total staff positions rose by 90:
  - Crisis-related staff positions: 135 in FY22 declined to 88 in FY23.
  - 137 new positions added, mainly to support strategic priority areas through augmentation resources.
- Year-end Fund-wide vacancy rate: about 0.5 percent (14 vacancies) versus 0.9 percent (27 vacancies) in FY22.
- FY23 budget deflator: 4.8 percent (set based on projected inflation in January 2022); actual average FY23 inflation: 7.5 percent.
- Methodology change: FY24–26 Medium-term budget will rely on actual inflation in the previous calendar year for US-CPI based deflator.

### PRICE PRESSURES (NON-PERSONNEL)
- Average airfares close to 30 percent higher than pre-pandemic levels.
- Contract renewals for IT services and creative solutions increased by 6-8 percent.
- Commercial data and library subscriptions increased by 8-12 percent in recent years.
- Food costs increased by 12 percent.

### TRAVEL — FY23 details
- A quarter of baseline Fund-financed travel-related resources were repurposed centrally to meet FY23 temporary needs (relative to 50 percent in FY22).
- Business travel spending: $46 million (rose above the 75 percent allocated level but below pre-crisis levels).
- Settlement and evacuation travel declined by 18 percent year-on-year.
- In-person missions in FY23: 4,528.
  - By Region FY23: AFR 1,270; APD 854; EUR 886; MCD 517; WHD 1,001.
  - By Department Type FY23: Area 895; CD Functional 2,863; Non-CD Functional 446; Support and Governance 324.
  - By Funding Source FY23: Fund Financed 2,522; Externally Financed 2,006.

### BUILDINGS, IT, SECURITY, AND RECEIPTS
- Building utilization increased from 91 percent in FY22 to 98 percent in FY23.
- Security spending: decreased in real terms by about $2 million to $39 million relative to FY22; HQ security remains above historical levels due to Covid-19 protocols.
- FY23 receipts: 229 (Millions of U.S. dollars), about 15 percent below budget and a 37 percent nominal increase relative to FY22 outturn.
  - Externally financed CD receipts: FY23 Outturn $195 million versus FY23 Budget $230 million.
  - Trust fund management fees: about $1 million above projection.
  - Concordia revenues increased by $2 million compared to FY22.
  - Parking receipts were $2 million higher than FY22.

---

### SECTION IV — CAPITAL SPENDING
- Total capital funds appropriated between FY21–23 available in FY23: $166 million (facilities $88 million; IT-intensive capital $78 million, including CCE $15 million).
- FY23 spending totaled $96 million:
  - Facilities spending: approximately $38 million.
  - IT-intensive capital spending: approximately $58 million (including $45 million in direct spending and $13 million in cloud-related licenses).
- About $45 million in remaining funds will carry over to FY24.

### FACILITIES CAPITAL — FY23 composition
- FY23 facilities spending: $38 million, a 73 percent increase ($16 million) compared to FY22; utilization 52 percent (vs. 26 percent in FY22).
- Lifecycle replacements: $26 million.
  - Major projects: HQ1 furniture refresh $6 million; audio-visual equipment upgrades $4 million; HQ1 chiller plant modernization $3 million; HQ1 restroom renovations $2 million.
- New investments: $11 million.
  - Workplace redesign $7 million; collaboration zones about $2 million; acoustic treatment $2 million.
- Contingencies and project planning: $1 million.
- Approximately $8 million in funding expired under three-year appropriation rules (generator about $3 million; furniture about $2 million).
- Remaining HQ1 Renewal funds after project closure: about $16 million returned.

### CARRYFORWARD, FUND DEFLATOR, CAPITAL BUDGET, AND CCE
- Carryforward (CF) definition and formula:
  - CF_t = min (U_t, x B_t), where U_t = underspend in current FY (B_t + CF_{t-1} – E_t); B_t = net administrative budget in current FY; CF_{t-1} = carryforward from previous FY; E_t = net expenditures in current FY; x = ratio limit of CF.
- CF limits and recent changes:
  - General CF limit: rose to 6 percent following the GFC, reverted to 3 percent in FY12; Board approved increases from 3 to 5 percent in 2020, then to 8 percent in 2021; reduced to 7 percent in FY23 and 6 percent in FY24.
  - IEO CF limit: increased from 5 to 8 percent in FY21, dropped to 5 percent in FY23 and increased to 8 percent in FY24.
  - OED CF limit: maximum of 20 percent of approved budget or dollar equivalent of two Advisor FTE positions; OED central carryforward discontinued effective FY21.
- Fund deflator:
  - From FY21, based on expected U.S. CPI data underlying published January WEO update.
  - For FY24–26 Medium-term Budget, Board approved change to use actual average US CPI in the calendar year preceding the budget, with a one-time transitional adjustment.
- Capital budget:
  - Purpose: finance IT-intensive capital investments and building improvements/repairs.
  - Availability: capital budgets available for three years; unspent appropriations lapse.
- Cloud Capital Equivalent (CCE):
  - Sub-category within capital budget for cloud subscription costs; treatment approved by Board April 2021 to reflect migration to cloud-hosted platforms.

---

### ANNEX II — CAPACITY DEVELOPMENT (CD): spending, delivery, and donors
- Total departmental CD spending (including departmental overheads and travel, excluding Fund-wide overheads): $337 million, a 31 percent increase from FY22.
  - Fund-financed: $148 million (43 percent of departmental spending), up 23 percent versus FY22.
  - Externally financed: $189 million (57 percent), up 37 percent versus FY22.
- CD delivery modalities (share of direct spending, excluding departmental overheads):
  - Field-based work: 52.0
  - Duty station-based Work: 21.2
  - Interactive learning and workshops: 20.7
  - Resident advisor: 4.1
  - Peer-to-peer engagement: 1.6
  - Online learning: 0.3
  - Total: 100.0
- Training and workshops:
  - Interactive synchronous, self-paced online learning, and peer-to-peer engagements represented around 23 percent of total CD Delivery.
  - ICD largest provider for training by spending, followed by FAD.
  - AFR region highest share of participants, followed by WHD and APD.
  - Share of FCS participants about 16 percent.
  - Over 60 percent of training (excluding online learning) delivered through RTCs and RTACs.
  - Self-paced asynchronous online learning accounted for 46 percent of training in FY23.
  - Program reached around 160,000 participants from the public since launch.
- Training participation (official participants only, FY19–FY23):
  - Total participants: FY19 16,988; FY20 17,724; FY21 14,666; FY22 24,134; FY23 19,937.
  - Asynchronous participants: FY19 4,413; FY20 7,930; FY21 5,069; FY22 9,440; FY23 9,167.
  - Synchronous participants: FY19 12,575; FY20 9,794; FY21 9,597; FY22 14,694; FY23 10,770.
  - Asynchronous (percent of total): FY19 26; FY20 53; FY21 35; FY22 39; FY23 46.
  - Synchronous (percent of total): FY19 74; FY20 47; FY21 65; FY22 61; FY23 54.

### EXTERNAL FINANCING — FY21–23 partner contributions
- Total partner contributions over FY21–23: $516 million.
- Top contributors (Contributions in Mil. of U.S. dollars; Share percent of total):
  - Japan: 123 (24)
  - European Commission: 61 (12)
  - Switzerland: 48 (9)
  - Germany: 37 (7)
  - France: 24 (5)
  - Kuwait: 23 (4)
  - Kazakhstan: 20 (4)
  - Netherlands: 17 (3)
  - China: 16 (3)
  - Norway: 14 (3)
  - Korea: 13 (3)
  - Austria: 13 (3)
  - United Kingdom: 10 (2)
  - Singapore: 8 (2)
  - Mauritius: 8 (1)
  - Luxembourg: 7 (1)
  - Canada: 6 (1)
  - Belgium: 6 (1)
  - Australia: 5 (1)
  - United States: 5 (1)
  - Mexico: 4 (1)
  - Sweden: 4 (1)
  - Saudi Arabia: 3 (1)
  - Gabon: 2 (0)
  - Sri Lanka: 2 (0)
  - Other donors and institutions: 36 (7)
    - of which private foundations: 2 (0)

- Contributions by vehicle type (Contribution in mil of US dollars; Share percent):
  - Multi-partner: 232 (60)
  - Thematic & Country Funds: 95 (41)
  - Regional Technical Assistance Centers: 111 (48)
  - Regional Training Centers: 26 (11)
  - Bilateral: 152 (40)
  - Total: 384 (100)

### CD OUTLOOK AND FUNDRAISING
- Significant resources required to finance new phases of existing vehicles over the coming two years and new CD in Fund transformation areas.
- Fundraising activity: Ten RCDCs, the Ukraine Fund, the Financial Sector Stability Fund (FSSF), the Data for Decisions Fund (D4D) and a large new Public Finances initiative are in, or will enter soon, a fundraising period.

---

### ANNEX III — STATISTICAL TABLES (selected figures)
- Administrative Budget, FY19–24 (Table 1) — selected outturns and budgets (Millions of FY23 U.S. dollars):
  - Personnel Outturns: FY19 995; FY20 1,028; FY21 1,049; FY22 1,106; FY23 1,182; FY24 Budget 1,278.
  - Travel Outturns: FY19 126; FY20 97; FY21 16; FY22 26; FY23 104; FY24 Budget 147.
  - Buildings & Other Outturns: FY19 224; FY20 225; FY21 203; FY22 214; FY23 236; FY24 Budget 265.
  - Total Gross Expenditures Outturns: FY19 1,346; FY20 1,350; FY21 1,268; FY22 1,346; FY23 1,522; FY24 Budget 1,706.
  - Receipts Outturns: FY19 214; FY20 199; FY21 142; FY22 166; FY23 229; FY24 Budget 295.
  - Total Net Expenditures Outturns: FY19 1,131; FY20 1,150; FY21 1,126; FY22 1,180; FY23 1,293; FY24 Budget 1,411.

- Net Fund-Financed Administrative Expenditures by Department (selected FY23 Outturns):
  - Area (aggregate): FY23 311.
  - Functional CD (aggregate): FY23 272.
  - Support (aggregate): FY23 292.
  - Grand Total (Net Fund-Financed) FY23: 1,186.

- Fund-Financed FTEs (selected totals):
  - Total Fund-financed FTEs (reported totals): FY19 2,867; FY20 2,865; FY21 2,878; FY22 2,886; FY23 2,877; FY24 2,928.
  - Budgeted Staff FTE Grand Total: FY19 2,983; FY20 3,013; FY21 3,108; FY22 3,180; FY23 3,270; FY24 3,316.
  - Crisis FTEs (FY21–FY24): FY21 90; FY22 135; FY23 88; FY24 43.

- Business travel and seminar expenditures (Table 10, selected):
  - Business travel and seminars total Outturn FY23: 92 (percent of total gross expenditures FY23: 6.0).
  - By financing FY23: Fund-financed 55; Externally financed 37.

- IT-Intensive Capital Spending (Table 14, totals):
  - Totals IT-Intensive Capital Spending: Total Approved 211.2; Total Spent in Previous Years 138.3; FY23 Outturn 45.0.
  - Key Modernization Projects (and pre-reqs) FY23 Outturn: 17.4.
  - iDATA FY23 Outturn: 6.8.
  - Nexus (New DM) FY23 Outturn: 5.1.
  - Infrastructure end-of-life FY23 Outturn: 13.3.
  - PC Refresh & Hybrid Model FY23 Outturn: 8.7.

- Facilities Projects (Table 13, FY23):
  - FY23 Total Available Funds: 72.6; FY23 Outturn 38.0; Lapsed Funds 7.5; Remaining Funds 27.1.
  - Lifecycle, Repair, Recurring Outturn: 25.6; Lapsed 7.0; Remaining 15.6.

*Source: ppea2023045 - FY2023—OUTPUT COST ESTIMATES AND BUDGET OUTTURN (International Monetary Fund).*

### EXECUTIVE SUMMARY

### EXECUTIVE SUMMARY

### FY23 context and Fund response
- Global environment: spillovers from Russia’s invasion of Ukraine, high inflation, global financial tightening, and intensified geopolitical fragmentation increased uncertainty and raised demand for Fund support.
- Fund response: provided financing, granular policy advice, and enhanced capacity development (CD) support; launched operations supported by the Resilience and Sustainability Trust (RST).
- Strategic priorities under phased augmentation: climate change, digital money, macrofinancial surveillance, fragility, and inclusion; FY23 focused on foundational work, development of core tools, analytical capacity, and pilot engagements.

### Budget utilization and augmentation
- Total net administrative expenditures (outturn): $1,293 million.
- Structural budget utilization: 100 percent (101 percent excluding OED/IEO).
- General carryforward resources used in FY23: $8 million.
- FY23 marked first year of implementation of phased budget augmentation ($21.8 million first phase), with a projected return to a flat real envelope starting in FY26.
- Drivers of higher utilization: increased in-person engagements; rising prices including travel; progress in filling vacancies; increased building occupancy; higher use of contractual services.
- Reprioritization and crisis funding (FY21-FY23): temporary ramp-up of staff in FY21 and FY22 (128 FTEs in FY21; 135 FTEs in FY22); crisis positions declined to 88 FTEs in FY23 as travel resumed and carryforward limits were reduced.

### Work pressures and staff workload
- Work pressures remained elevated in FY23: average overtime above pre-pandemic levels, particularly for senior staff; B-level staff across most departments exceeded the 15 percent threshold.
- Annual leave rates have recovered relative to earlier pandemic periods, but sustained demand contributed to stress and strained work-life balance.

### Spending by output area — key movements
- Broad-based increase in country engagement spending:
  - Country engagements (excluding travel) rose 8 percent ($44 million) year-on-year.
  - Including travel, country engagements increased 18 percent ($96 million).
- Lending activity and RST/RSF:
  - Total approved programs in FY23: 38 (33 UCT including precautionary; 7 emergency).
  - FY22 comparators: 18 UCT and 5 emergency operations.
  - Spending on UCT operations excluding travel rose 16 percent relative to FY22 ($14 million).
  - FY23 RST delivery costs estimated at $8 million; FY23 trust management spending was $4 million.
  - RSF became operational in October 2022 with 5 pilot programs approved in FY23.
- Bilateral surveillance:
  - Spending on country surveillance excluding travel decreased by 3 percent ($6 million) relative to FY22.
  - Bilateral outputs in FY23: 117 Article IV consultations completed; 8 FSAPs completed (FY22: 126 Article IVs; 11 FSAPs).
- Capacity development (CD):
  - Departmental CD spending (direct spending and departmental overheads, excluding Fund-wide overheads) reached $337 million, up 31 percent.
  - Fund-financed CD spending: $148 million (43 percent of departmental spending), up 23 percent relative to FY22.
  - Externally funded CD spending: $189 million (57 percent), up 37 percent versus FY22; represented 85 percent of the $222 million available envelope.
  - Execution of external resources: 85 percent, a 27 percent increase versus FY22.
  - Including Fund-wide overheads, CD represents 29 percent of Fund spending; fully loaded Fund-financed CD represents 56 percent of total CD spending and externally funded CD 44 percent.

### Spending per country and by income level
- Average direct country spending excluding travel (internal and external resources) increased by 7 percent to $2.3 million relative to FY22.
- Including travel, average direct country spending increased 17 percent to $2.6 million.
- Excluding externally funded CD, average direct country spending increased 4 percent to $1.8 million.
- Average spending for surveillance countries: $1.2 million (increase of 3 percent relative to FY22).
- For countries with Fund arrangements, year-on-year increase in average spending: 13 percent.
- By income group (average direct spending excluding travel):
  - G7 countries: decreased by about 25 percent to $1.9 million.
  - Emerging economies: increased by 9 percent to $2.3 million.
  - Low-income developing countries: rose 10 percent to $3.1 million.

### Capital spending and IT
- Capital spending in FY23: $96 million.
- Sixty percent of capital spending focused on IT-intensive projects and licenses.
- Capital spending priorities: post-pandemic resumption of facilities-related investments to support hybrid work and staff growth; stabilization of IT-intensive capital investments.
- Cloud license expenses continued to rise steadily in FY23.

### Outputs, staffing, and workload measures
- In-person missions in FY23: 4,528 missions to 196 countries.
- Article IV consultations completed in FY23: 117.
- FSAPs completed in FY23: 8.
- Approved lending operations in FY23: 38.
- Externally financed spending in FY23: $195 million.
- Allocated staff FTEs and crisis position evolution reflect temporary pandemic-era ramp-ups and subsequent reductions as travel resumed; crisis positions fell from peaks in FY21-FY22 to 88 FTEs in FY23.

### Paper structure (sections summarized)
- Section II: FY23 administrative spending by main output areas and priority topics, and spending by department.
- Section III: FY23 outturn by key input categories.
- Section IV: Execution of the capital budget.
- Annexes include Technical Annex—Concept and Methodologies; Capacity Development; Statistical Tables.

*Source: ppea2023045 - EXECUTIVE SUMMARY (FY2023—OUTPUT COST ESTIMATES AND BUDGET OUTTURN).*

### 8. Multilateral surveillance (Figure 7). Flagship publications in FY23 mainly focused on

### 8. Multilateral surveillance (Figure 7). Flagship publications in FY23 mainly focused on

### Multilateral surveillance and global standards — spending and focus
- Flagship publications in FY23 mainly focused on inflation, food and energy insecurity, trade spillovers, and debt sustainability.
- Spending on multilateral surveillance excluding travel increased by 2 percent compared to FY22.
- Figure 7 summarizes Direct Cost excluding travel for Multilateral Surveillance and Global Standards in FY23 (millions of FY23 U.S. dollars). Sources: TRACES, TIMS, iBBIS, and staff estimates.

### Direct spending per country and regional patterns (Figure 5 highlights)
- Spending increased for all country groups, mainly driven by a growth in number and complexity of lending programs and CD delivery.
- Spending for vulnerable countries remained high, reflecting a shift to Upper Credit Tranche (UCT) arrangements and provision of CD services.
- CD delivery drove up the average spending on FCS and small developing states.
- Most regions saw an increase in spending on direct country engagements, particularly through CD delivery and lending operations.
- Sources for data: TRACES, TIMS, iBBIS, staff estimates.
- Note: Direct country support spending only. Excludes travel, and communications related work, as well as Fund-wide overheads.

### Global cooperation and standards (paragraph 9)
- FY23 direct spending excluding travel remained broadly unchanged relative to FY22.
- Contributions to international fora marked by the ramp-up of coordination on climate change, digital money, and a focus on fragility.
- Continued work on global standard setting, methodologies, and manuals in core areas.

### Policy spending (paragraph 10)
- Policy-related spending excluding travel increased by 4 percent.
- Key policy work included:
  - IMF Strategy Toward Mainstreaming Gender.
  - Review of the Implementation of the 2018 Framework for Enhanced Fund Engagement on Governance.
  - Review of Institutional Safeguards.
- Staff started the quinquennial CD Strategy Review, expected to be completed in 2025.

### Analytical work (paragraph 11)
- Spending excluding travel in analytical work rose by 8 percent compared to FY22.
- Main analytical focuses: impact of food and energy crisis, inflation, debt vulnerabilities, and foundational work across priority areas to support a greener, digital, and more inclusive global economy.

### Governance and finances (paragraph 12)
- Spending excluding travel remained unchanged relative to FY22.
- Activities included operationalization of the RST, establishment of the Food Shock Window, ongoing work on the 16th General Review of Quotas, and mobilization of resources to increase concessional lending capacity of the PRGT.

### Corporate functions and central spending (paragraphs 13–14)
- Corporate activities excluding travel were broadly stable as a share of spending, while rising slightly in dollar terms: $22 million or 6 percent over FY22.
- Increases reflected higher utilization of budgets and investments in HR service delivery stabilization, HR modernization, dispute resolution strengthening, standup of the Office of Transformation Management, and HR, IT, and facilities-related augmentation implementation.
- Central spending totaled $19 million, covering overseas personnel-related expenses, other travel-related costs, security, and other personnel-related spending.
- Receipts of $17 million mainly included Trust Fund Management Fees, Fund-sponsored sharing agreements, and publication sales.

### Priority topics — direct Fund-financed spending (paragraphs 15–16, Figure 8)
- Externally financed spending on highlighted priority topics was about $30 million (about 15 percent of external spending).
- Debt:
  - Direct spending remained broadly stable at $45 million.
  - Focus: debt sustainability, restructuring, statistics, debt transparency, new DSA for market access countries, rollout of the Sovereign Risk and Debt Sustainability Framework (SRDSF) including natural-disaster and exhaustible-resource modules.
- Governance/Corruption:
  - Direct spending estimated at $21 million in FY23, an increase of $2 million from FY22.
  - Focus: supporting Fund lending, review of governance commitments in crisis spending, review of the 2018 framework for enhanced Fund engagement on governance.

### Augmentation-supported priority topics (paragraph 16 and Box 4)
- Climate change:
  - Real direct spending totaled an estimated $44 million in FY23, a $19 million increase from FY22.
  - Activities: foundational work, piloting in country engagements, policy guidance, tools and models, data subscriptions, climate-related indicators, climate macroeconomic assessment program pilots, internal organizational changes, technical assistance and training, and participation in international climate fora.
  - In Article IVs: 15 covered in-depth climate change issues (5 discussed mitigation policies for large emitters; 10 addressed adaptation and/or transition management).
  - Six FSAPs included a climate component; 5 RSF arrangements approved by the Board.
- Digital money:
  - Estimated spending totaled $16 million, an increase of $6.6 million in FY22.
  - Activities: analytic and legal frameworks for CBDCs, assessments of impact on the international monetary system, CD on CBDC design and impacts, modernization of payment systems, oversight/regulation of fintech and crypto-assets, and 9 deliveries of two new external training courses on DM issues.
- Macrofinancial surveillance:
  - FY23 direct spending on core financial work estimated at $96 million, an increase of $14 million from FY22.
  - Focus: monitoring rising financial vulnerabilities from the pandemic, corporate sector stress, spillover effects from the war in Ukraine, policy response advice, deepening macrofinancial analysis, onboarding and support to country teams, and development of tools and how-to notes.
- Inclusion and Gender:
  - Spending totaled $16 million, an increase of $2 million from FY22.
  - Focus: country analysis on pandemic impacts, gender, labor market and inequality, social spending; toolkits and datasets for country teams; gender outreach missions; external stakeholder network building.
- Fragile and Conflict-affected States (FCS):
  - Overall direct spending on the 37 FCS countries increased by $6 million to $93 million in FY23 ($103 million, including travel).
  - Direct CD spending, mostly externally financed, increased to $37 million from $30 million.
  - Non-CD FCS spending increased to $56 million, 60 percent of which was associated with Fund lending.
  - Augmentation supported increased field presence, HQ-based integration of CD and surveillance, and strengthened centralized policy function.
  - Area Departments channeled more than half of the resources to fragile states—mostly in AFR, MCD, and EUR—in support of country operations, particularly program work.
  - In FY23, 6 Country Engagement Strategies (CES) were completed (South Sudan, Guinea-Bissau, Zimbabwe, Somalia, Yemen, Iraq) and published in Article IV and/or program review staff reports.
  - The new Staff Guidance Note on the FCS Strategy implementation was published in March 2023.

### Box 4 — FY23 augmentation-supported work (high-level summary)
- About 70 percent of augmentation resources allocated in FY23 went to strengthen country support, including about 25 percent for CD delivery.
- Climate Change: country engagement in 15 Article IVs; 6 FSAPs with climate components; 5 RSF arrangements; technical assistance and training delivered across regions; policy and toolkit development; IMF participation in international climate fora.
- Digital Money: 4 Article IVs and 6 FSAPs covered digital money, fintech, and crypto-asset issues; CD on CBDC and payment systems; 9 deliveries of new external training courses; policy and analytical work on crypto assets and CBDC cross-border effects.
- Macrofinancial Surveillance: integration of macrofinancial linkages into bilateral surveillance, progress assessment in 71 Article IVs, piloted FSAP follow-ups in six Article IVs, development of tools such as growth-at-risk analysis, credit gap and credit cycle analysis, and sovereign-bank nexus analysis.
- Fragile and Conflict-Affected States: CES implementation on track; strengthened field presence with long-term experts, resident representatives, and local economists; policy and analytical work on conflict, terms of trade shocks, food crisis, refugees, and climate.
- Inclusion/Gender: Board-approved Strategy on mainstreaming gender (July 2022); 2 Article IVs covered in-depth gender issues; 20 country documents covered gender more lightly; 44 Article IVs addressed inclusion; CD on gender-responsive budgeting and legal rights; new external training course on gender, inequality, and macroeconomics.
- Corporate Departments: support departments and COM received about 16 percent of augmentation resources in FY23 to support HR, corporate services, IT, communications, and safe deployment of personnel in field offices.

### Spending by department and outputs (section B, paragraphs 17 and Figures 10–12)
- Focus: direct support to member countries guided Fund activity in FY23.
- Selected CD departments (FAD, ICD, LEG, MCM) saw an increase in CD spending, boosted by external resources; area departments shifted focus to lending operations.
- Area Departments: spending slightly increased compared to FY22 and FY19, reflecting heightened support to members with protracted policy challenges, increased number and complexity of financing arrangements, complex debt restructuring, and FCS engagement; contributed to mainstreaming climate change in surveillance.
- Functional non-CD Departments: reported an increase in spending on policy and analytical work, RST implementation, and Fund governance work.
- Functional CD Departments: increase in spending in FY23 relative to FY22 and FY19 driven by rising demand for CD services (climate change and digital money) and increased support to area departments for integrating CD and surveillance, particularly for FCS members.
- Support Departments: spending broadly stable as a share of total with a slight increase compared to FY22.
- Other:
  - Small Offices: spending remained broadly stable.
  - OED/IEO: OED spending fell by about $2 million due to high turnover. IEO spending was $1 million below last year, driven by recruitment delays and limited travel.
- Figures 10–12 present Outputs by Department, Change in Outputs by Department, and FY23 Spending by Department (Millions of FY23 U.S. Dollars). Sources: TRACES, TIMS, iBBIS. Excludes IMF Center and Miscellaneous for certain figures. Department acronyms used include: CFX: Corporate functions; MSGS: Multilateral Surveillance/Global Standards; BS: Bilateral Surveillance; LOE: Lending; PA: Policy/Analytics; FGF: Fund Governance/Finances.

*Source: FY2023—OUTPUT COST ESTIMATES AND BUDGET OUTTURN (International Monetary Fund).*

### SECTION III. SPENDING BY INPUTS

### SECTION III. SPENDING BY INPUTS

### A. Spending by Major Budget Categories — Overview
- Personnel spending represented about 78 percent of gross administrative spending, a slight decline from FY22, but broadly in line with historical averages.
- Travel spending rose with the return to in-person engagement following the pandemic and with a sharp increase in related prices.
- Spending on building and IT, including the transition to a hybrid work model, stabilized in FY23.
- Table 2 (summary figures, FY22–23, Millions of FY23 U.S. dollars) highlights:
  - Gross expenditures: FY22 Outturn 1,530; FY23 Outturn 1,562.
  - Personnel: FY22 Outturn 1,126; FY23 Outturn 1,165; FY23 Total personnel spending reported elsewhere as $1,182 million (see Personnel subsection).
  - Travel: FY22 Outturn 140; FY23 Outturn 122 (with business travel spending $46 million).
  - Buildings and other expenses: FY22 Outturn 250; FY23 Outturn 260.
  - Receipts: FY22 Outturn -258; FY23 Outturn -268.
  - Net expenditures: FY22 Outturn 1,272; FY23 Outturn 1,295.
  - General Net Admin Budget: FY22 Budget 1,184; FY22 Outturn 1,163; FY23 Budget 1,207; FY23 Outturn 1,216.
  - Total net available resources: FY22 Budget 1,382; FY22 Outturn 1,237; FY23 Budget 1,396; FY23 Outturn 1,294.

### Personnel
- Total personnel (staff and contractual) spending of $1,182 million represented 103 percent of the structural budget, supported by temporary carryforward resources.
- Total staff positions rose by 90:
  - Crisis-related staff positions declined from 135 in FY22 to 88 in FY23.
  - 137 new positions added, mainly to support strategic priority areas through augmentation resources.
- Year-end Fund-wide vacancy rate (based on both structural and temporary positions) fell to about 0.5 percent (14 vacancies) compared to 0.9 percent (27 vacancies) in FY22.
- FY23 budget deflator was 4.8 percent (set based on projected inflation in January 2022); actual average FY23 inflation was 7.5 percent.
- Methodology change: FY24–26 Medium-term budget agreed to rely on actual inflation in the previous calendar year for US-CPI based deflator.

### Price pressures (non-personnel)
- Significant price pressures affected non-personnel costs:
  - Average airfares close to 30 percent higher than pre-pandemic levels.
  - Contract renewals for IT services and creative solutions increased by 6-8 percent.
  - Commercial data and library subscriptions increased by 8-12 percent in recent years.
  - Food costs increased by 12 percent.

### Travel
- A quarter of baseline Fund-financed travel-related resources were repurposed centrally to meet FY23 temporary needs (relative to 50 percent in FY22).
- Travel execution recovered in FY23 reflecting both volume and airfare cost.
- Overall business travel spending rose above the 75 percent allocated level to $46 million but remained below pre-crisis levels.
- Settlement and evacuation travel declined by 18 percent year-on-year, with continued evacuations from Afghanistan and Ukraine.
- Number of in-person missions rose to 4,528 in FY23 (By Region and Department Type breakdown):
  - By Region FY23: AFR 1,270; APD 854; EUR 886; MCD 517; WHD 1,001.
  - By Department Type FY23: Area 895; CD Functional 2,863; Non-CD Functional 446; Support and Governance 324.
  - By Funding Source FY23: Fund Financed 2,522; Externally Financed 2,006.

### Buildings, IT, and other services
- Utilization increased from 91 percent in FY22 to 98 percent in FY23, slightly below pre-pandemic levels.
- Underspend driven by lower-than-budgeted IT expenditures, reduced printing needs, and an overperformance of cost recovery and chargebacks.
- Underspend partly offset by higher-than-budgeted contract-based services and costs from first in-person Annual/Spring Meetings in three years (in-person + hybrid).
- Other increases derived from higher building occupancy (headquarters and field offices), contractual services, subscriptions, and representation.

### Security-related spending
- Fund-wide security spending decreased in real terms by about $2 million to $39 million relative to FY22 and was $1.6 million below pre-pandemic levels.
- HQ security remains above historical levels largely due to Covid-19 health and safety protocols (e.g., testing).
- IT security spending remained stable.
- Field security spending unchanged compared to FY22 and reflects a return to historical levels after a pandemic-driven uptick.
- Business Continuity saw a marginal decrease versus FY22 due to staffing reorganization and reduced crisis spending.

### Receipts
- FY23 receipts reached 229 (Millions of U.S. dollars), about 15 percent below budget and a 37 percent nominal increase relative to FY22 outturn.
- Underspend mainly reflects lower-than-budgeted externally financed CD receipts: FY23 Outturn $195 million versus FY23 Budget $230 million (outturn above April 2022 projection of $180 million).
- Trust fund management fees about $1 million above projection.
- Concordia revenues increased by $2 million compared to FY22.
- Parking receipts were $2 million higher than FY22, still about $1 million lower than the pre-pandemic period.

### SECTION IV. CAPITAL SPENDING — Overview
- Total of $166 million in capital funds appropriated between FY21–23 were available in FY23, split between facilities ($88 million) and IT-intensive capital funding ($78 million, including the Cloud Capital Equivalent ($15 million)).
- FY23 spending totaled $96 million:
  - Facilities spending approximately $38 million.
  - IT-intensive capital spending approximately $58 million (including $45 million in direct spending and $13 million in cloud-related licenses).
- About $45 million in remaining funds will carry over to FY24.

### Facilities capital
- FY23 spending $38 million, a 73 percent increase ($16 million) compared to FY22; utilization of available funds was 52 percent (vs. 26 percent in FY22).
- Composition:
  - Lifecycle replacements: $26 million.
    - Major projects delivered: HQ1 furniture refresh $6 million; audio-visual equipment upgrades $4 million; HQ1 chiller plant modernization $3 million; HQ1 restroom renovations $2 million.
  - New investments: $11 million.
    - Workplace redesign $7 million; piloting collaboration zones about $2 million; acoustic treatment $2 million.
  - Contingencies and project planning: $1 million.
- Approximately $8 million in funding expired under three-year appropriation rules (generator about $3 million; furniture about $2 million).
- Remaining HQ1 Renewal funds following project closure (about $16 million) returned.

### IT-Intensive Capital Expenditures
- FY23 IT-intensive spending $58 million, $11 million lower (16 percent) relative to FY22; utilization 74 percent of available resources (78 percent in FY22).
- FY23 spending focus on stabilization and completion of ongoing modernization projects:
  - 39 percent ($17 million, including $3 million pre-requisite projects) of FY23 IT spending supported key modernization projects.
  - Infrastructure end-of-life and other new investment projects: $28 million.
  - Cloud license expenses (Cloud Capital Equivalent) $13 million in FY23 (budgeted $15 million).
- Additional specifics:
  - Total IT-Intensive Capital Spending (FY23 Outturn): 211 Approved; 138 Total Spent in Previous Years (through FY23); 45 FY23 Outturn (figure categories reflect table structure).
  - Key categories (Table 6, FY23 Outturn in Millions of FY23 U.S. dollars):
    - Key Modernization Projects (and pre-reqs): Total Approved 106; Total Spent in Previous Years 72; FY23 Outturn 17.
    - Nexus (New DM): Approved 26; Spent previously 20; FY23 Outturn 5.
    - iDATA: Approved 32; Spent previously 17; FY23 Outturn 7.
    - HR Modernization: FY23 Outturn 1 (1HR Closeout and SRP CCBR/VSP reforms activity noted).
    - Pre-requisite/foundational projects: Approved 16; Spent previously 14; FY23 Outturn 3.
    - New Investments: Approved 65; Spent previously 32; FY23 Outturn 14.
    - Infrastructure end-of-life: Approved 40; Spent previously 35; FY23 Outturn 13.

### Key modernization projects and select details
- HR Modernization 2.0: $1 million in FY23. 1HR program finalizing close-out; reset HR modernization program under design. SRP-CCBR reforms implemented ahead of May 1, 2023 effective date; related project closed out in summer. Two other projects approved for implementation (special cases under CCBR reforms and Dual Systems Integration).
- iData: $7 million in FY23. Focused on modernizing economic data management and dissemination platforms; development expected to complete in FY24 and close in FY25. Project budget increased by $8 million to address higher-than-expected Managed Service Provider and software license costs. Post-implementation recurring cost estimates increased to $1.3 million per year versus $0.9 million in net savings originally projected.
- Nexus (New Document Management): $5 million in FY23. Delivered two small releases (Nov 2021 and Aug 2022). Project budget increased by about $1 million during FY23 due to delays and vendor-related data migration quality issues; final deployment timing under review.
- iDW-related projects ($1 million in FY23): Document Workflow and Review project completed scoping/planning, implementation commencing Q1 FY24; Intranet replacement scoping progressing with implementation proposal expected Q2 FY24.
- Pre-requisite/Foundational projects ($3 million in FY23): Corporate Data Warehouse project to close in FY24 after completing Travel, Workday, and Clarity systems work; Identity and Access Management migration of internal systems expected to complete in FY24, with external access migration options being evaluated.
- Other IT investments and lifecycle replacements: New investment spending $14 million in FY23 ($10 million in FY22). Major items included Core Banking system (iFin) upgrades, Oracle Upgrade, Proactive Crown Jewels Protection ($6 million). Lifecycle replacements $13 million (PC refresh and network infrastructure upgrades $11 million).
- Cloud Capital Equivalent (CCE): Cloud license spending in FY23 totaled $13 million versus $15 million budgeted.

### Annex I — Technical Annex (Concept and Methodologies)
- Financial Year (t): May 1(t-1) to April 30(t). Example: FY22 = May 1, 2022 to April 30, 2023.
- Administrative Budget identity:
  - Gross (total spending envelope)
  - - Receipts (donor funding + revenue)
  - = Net (spending that needs funding)
- Total Available Resources = Net + Carryforward

*Source: ppea2023045 - SECTION III. SPENDING BY INPUTS (IMF).*

### 1. Carryforward. The right to spend budget allocations beyond the period for which

### 1. Carryforward. The right to spend budget allocations beyond the period for which

### Carryforward (CF) rules and limits
- The CF is the minimum of the underspend in the current year or CF limit of the current year’s approved net administrative budget:  
  CF_t = min (U_t, x B_t)  
  Where:  
  U_t = underspend in current FY (B_t + CF_{t-1} – E_t)  
  B_t = net administrative budget in current FY  
  CF_{t-1} = carryforward from previous FY  
  E_t = net expenditures in current FY  
  x = ratio limit of CF
- CF limits and changes:
  - General CF limit: rose to 6 percent following the GFC, reverted to 3 percent in FY12; Board approved increases from 3 to 5 percent in 2020, then to 8 percent in 2021; reduced to 7 percent in FY23 and 6 percent in FY24. Temporary, exceptional levels supported ramp-up in work to address pandemic-related needs.
  - IEO CF limit: increased from 5 to 8 percent in FY21, dropped to 5 percent in FY23 and increased to 8 percent in FY24.
  - OED CF limit: for each office is set at a maximum of 20 percent of the approved budget or the dollar equivalent of two Advisor FTE positions. The OED central carryforward was discontinued effective FY21 in line with the streamlining of OED central budget accounts.

### Operational definition
- CF_t is constrained by the underspend U_t and by the product x B_t (the ratio limit times current net administrative budget).

---

### Fund deflator
- From FY21, the Fund deflator was based on expected U.S. CPI data underlying the published January WEO update.
- For the FY24-26 Medium-term Budget, the Board approved a change from FY24 onwards to use actual average US CPI in the calendar year preceding the budget, with a one-time transitional adjustment to address the shift from a forward- to a backward-looking Fund deflator.

---

### Capital budget
- Purpose: finance IT-intensive capital investments and building improvements and repairs.
- Availability: capital budgets are available for a period of three years, after which unspent appropriations lapse.
- Covered projects: acquisition of building or IT equipment; construction, major renovation, or repairs; major IT software development or infrastructure projects.

---

### Cloud Capital Equivalent (CCE)
- Defined as a sub-category within the capital budget for cloud subscription costs, per budgetary treatment approved by the Board in April 2021.
- Rationale: introduced in response to migration from a “purchase/build and maintain” software model to cloud-hosted platforms with subscription costs, which would have, all else equal, reduced capital spending and increased administrative spending.

---

### Budget process
- Starting points for the annual budget exercise: Managing Director’s Global Policy Agenda, the IMFC Communiqué, and the Board Work Program.
- Budget translates priorities into reallocations across departments and outputs.
- Board reviews: income and expenditure position, staff compensation, and the capital budget.
- Committee on Capacity Building (CCB) and a Board briefing on CD priorities enable links between CD and the budget process.

---

### Annex II. Capacity Development

### A. Spending on CD Activities — Overview
- CD spending recovered to near pre-pandemic levels.
- Total departmental spending (including departmental overheads and travel but excluding Fund-wide overheads) increased to $337 million—a 31 percent increase from FY22—including $148 million in Fund-financed spending and $189 million externally financed spending.
- CD accounts for almost a third of country operations.
- Total activity in FTE terms surpassed pre-pandemic levels.
- Drivers:
  - Externally financed spending grew 37 percent in real terms.
  - Fund-financed spending grew by around 23 percent.
- Outturn was below initial plans due to lower than expected travel in the early part of the year.

### B. CD Distribution
- Delivery modalities (share of direct spending, excluding departmental overheads):
  - Field-based work: 52.0
  - Duty station-based Work: 21.2
  - Interactive learning and workshops: 20.7
  - Resident advisor: 4.1
  - Peer-to-peer engagement: 1.6
  - Online learning: 0.3
  - Total: 100.0
- Training and workshops:
  - Interactive synchronous learning and workshops, self-paced online learning, and peer-to-peer engagements represented around 23 percent of total CD Delivery.
  - ICD is the largest provider for training in terms of spending, followed by FAD.
  - AFR region has the highest share of participants, followed by WHD and APD.
  - The lion’s share of participants came from emerging and middle-income economies; the share of FCS participants was about 16 percent.
  - Over 60 percent of training (excluding online learning) is delivered through RTCs and RTACs.
  - Self-paced asynchronous online learning has grown rapidly; in FY23 this accounted for 46 percent of training.
  - Since launch, the program has reached around 160,000 participants from the public.

- Training participation by mode, FY19–FY23 (official participants only; FY23 data preliminary):
  - Total participants: FY19 16,988; FY20 17,724; FY21 14,666; FY22 24,134; FY23 19,937
  - Asynchronous participants (number): FY19 4,413; FY20 7,930; FY21 5,069; FY22 9,440; FY23 9,167
  - Synchronous participants (number): FY19 12,575; FY20 9,794; FY21 9,597; FY22 14,694; FY23 10,770
  - Asynchronous (percent of total participants): FY19 26; FY20 53; FY21 35; FY22 39; FY23 46
  - Synchronous (percent of total participants): FY19 74; FY20 47; FY21 65; FY22 61; FY23 54

### C. Source of External Financing — Overview and statistics
- Total partner contributions over the FY21-23 period: $516 million (down slightly relative to FY20-22 $571 million).
- Liquidity balances remain comfortable in most CD vehicles given the Fund’s multiyear upfront funding model.
- External support channels: multi-partner vehicles (regional technical assistance centers, thematic and country funds), bilateral programs, and regional training centers hosted by partner countries.
- Recipient members’ contributions to Regional CD Centers (RCDC) share: close to 30 percent.
- IMF COVID-19 Crisis Capacity Development Initiative (CCCDI): contributions from partners reached close to $40 million; focus now on wrapping up short-term activities and integrating longer-term projects into existing CD funding vehicles.

- Partner contributions, FY21-23 (Contributions in Mil. of U.S. dollars; Share percent of total):
  - Total: 516 (100)
  - Japan: 123 (24)
  - European Commission: 61 (12)
  - Switzerland: 48 (9)
  - Germany: 37 (7)
  - France: 24 (5)
  - Kuwait: 23 (4)
  - Kazakhstan: 20 (4)
  - Netherlands: 17 (3)
  - China: 16 (3)
  - Norway: 14 (3)
  - Korea: 13 (3)
  - Austria: 13 (3)
  - United Kingdom: 10 (2)
  - Singapore: 8 (2)
  - Mauritius: 8 (1)
  - Luxembourg: 7 (1)
  - Canada: 6 (1)
  - Belgium: 6 (1)
  - Australia: 5 (1)
  - United States: 5 (1)
  - Mexico: 4 (1)
  - Sweden: 4 (1)
  - Saudi Arabia: 3 (1)
  - Gabon: 2 (0)
  - Sri Lanka: 2 (0)
  - Other donors and institutions: 36 (7)
    - of which: private foundations: 2 (0)

- Contributions by vehicle type (Contribution in mil of US dollars; Share percent):
  - Multi-partner: 232 (60)
  - Thematic & Country Funds: 95 (41)
  - Regional Technical Assistance Centers: 111 (48)
  - Regional Training Centers: 26 (11)
  - Bilateral: 152 (40)
  - Total: 384 (100)

### Outlook
- Significant resources required to finance new phases of existing vehicles over the coming two years, as well as new CD envisaged in the Fund’s transformation areas.
- Fundraising and upcoming efforts:
  - Ten RCDCs, the Ukraine Fund, the Financial Sector Stability Fund (FSSF), the Data for Decisions Fund (D4D) and a large new Public Finances initiative are in, or will enter soon, a fundraising period.

*International Monetary Fund — FY2023—OUTPUT COST ESTIMATES AND BUDGET OUTTURN (selected sections).*

### Annex III. Statistical Tables

### Annex III. Statistical Tables

### Administrative Budget, FY19–24 (Table 1)
- Personnel (Budget / Outturn):
  - FY19: 1,009 / 995
  - FY20: 1,025 / 1,028
  - FY21: 1,055 / 1,049
  - FY22: 1,074 / 1,106
  - FY23: 1,165 / 1,182
  - FY24: 1,278
- Travel (Budget / Outturn):
  - FY19: 135 / 126
  - FY20: 134 / 97
  - FY21: 133 / 16
  - FY22: 134 / 26
  - FY23: 122 / 104
  - FY24: 147
- Buildings and other expenditures (Budget / Outturn):
  - FY19: 215 / 224
  - FY20: 224 / 225
  - FY21: 230 / 203
  - FY22: 239 / 214
  - FY23: 260 / 236
  - FY24: 265
- Contingency (Budget / Outturn):
  - FY19: 12 / 0
  - FY20: 15 / 0
  - FY21: 11 / 0
  - FY22: 12 / 0
  - FY23: 15 / 0
  - FY24: 17
- Total Gross Expenditures (Budget / Outturn):
  - FY19: 1,371 / 1,346
  - FY20: 1,397 / 1,350
  - FY21: 1,429 / 1,268
  - FY22: 1,460 / 1,346
  - FY23: 1,562 / 1,522
  - FY24: 1,706
- Receipts (Budget / Outturn):
  - FY19: 236 / 214
  - FY20: 239 / 199
  - FY21: 243 / 142
  - FY22: 246 / 166
  - FY23: 268 / 229
  - FY24: 295
- Total Net Expenditures (Budget / Outturn):
  - FY19: 1,135 / 1,131
  - FY20: 1,158 / 1,150
  - FY21: 1,186 / 1,126
  - FY22: 1,214 / 1,180
  - FY23: 1,295 / 1,293
  - FY24: 1,411

### Gross Administrative Expenditures — Travel; Buildings & Other; Receipts (Tables 3–5)
- Travel expenditures by component (selected FY19–FY23 Budget / Outturn):
  - Expenditures (Business travel): FY19 111 / 99; FY20 107 / 72; FY21 103 / 1; FY22 103 / 11; FY23 104 / 78; FY24 Budget 128
  - Transportation: FY19 110 / 56; FY20 102 / 41; FY21 98 / 1; FY22 91 / 7; FY23 104 / 49; FY24 Budget 127
  - Per diem: FY19 1 / 43; FY20 6 / 31; FY21 5 / 0; FY22 12 / 4; FY23 0 / 29; FY24 Budget 1
- Buildings, IT and other expenses (Budget / Outturn):
  - Total buildings, IT and other expenses: FY19 215 / 224; FY20 224 / 225; FY21 230 / 203; FY22 239 / 214; FY23 260 / 236; FY24 265
  - Building occupancy: FY19 67 / 69; FY20 70 / 69; FY21 73 / 68; FY22 77 / 69; FY23 73 / 76; FY24 76
  - Information technology: FY19 69 / 66; FY20 72 / 67; FY21 73 / 67; FY22 75 / 66; FY23 71 / 69; FY24 68
  - Miscellaneous (notes indicate mainly contractual services): FY19 46 / 55; FY20 57 / 56; FY21 52 / 41; FY22 54 / 50; FY23 83 / 57; FY24 84
- Receipts (Budget / Outturn):
  - Total receipts: FY19 236 / 214; FY20 239 / 199; FY21 243 / 142; FY22 246 / 166; FY23 268 / 229; FY24 295
  - Externally-financed receipts: FY19 196 / 178; FY20 200 / 168; FY21 206 / 118; FY22 210 / 141; FY23 230 / 195; FY24 250
  - General receipts 2/: FY19 40 / 36; FY20 39 / 31; FY21 37 / 23; FY22 36 / 25; FY23 38 / 33; FY24 44

### Net Fund-Financed Administrative Expenditures by Department, FY19–24 (Table 6)
- Selected department outturns (FY19 through FY24 shown; last column is FY24 Outturn where provided):
  - Area: FY19 295 / FY20 300 / FY21 303 / FY22 303 / FY23 311 / FY24 360
  - African: FY19 87 / FY20 89 / FY21 91 / FY22 91 / FY23 94 / FY24 111
  - Asia and Pacific: FY19 43 / FY20 44 / FY21 44 / FY22 46 / FY23 46 / FY24 53
  - European: FY19 68 / FY20 68 / FY21 68 / FY22 68 / FY23 68 / FY24 75
  - Functional non-CD (aggregate): FY19 160 / FY20 165 / FY21 163 / FY22 170 / FY23 168 / FY24 210
  - Functional CD (aggregate): FY19 251 / FY20 260 / FY21 264 / FY22 262 / FY23 272 / FY24 332
  - Support (aggregate): FY19 271 / FY20 274 / FY21 280 / FY22 278 / FY23 292 / FY24 339
  - Grand Total (Net Fund-Financed): FY19 1,135 / FY20 1,134 / FY21 1,158 / FY22 1,150 / FY23 1,186 / FY24 1,411
- Memorandum: "Carry forward" is noted as a component of totals (table footer).

### Fund-Financed FTEs and Budgeted Staff FTE, FY19–24 (Tables 7–9)
- Fund-financed FTEs by department (selected totals and aggregates):
  - Area (Fund-financed FTEs): FY19 785 / FY20 799 / FY21 789 / FY22 799 / FY23 780 / FY24 817
  - African: FY19 220 / FY20 226 / FY21 226 / FY22 229 / FY23 224 / FY24 239
  - Functional non-CD: FY19 501 / FY20 511 / FY21 502 / FY22 522 / FY23 498 / FY24 563
  - Functional CD: FY19 721 / FY20 714 / FY21 732 / FY22 722 / FY23 729 / FY24 787
  - Support: FY19 509 / FY20 500 / FY21 516 / FY22 501 / FY23 533 / FY24 594
  - Total (Fund-financed FTEs, as reported in Table 7 totals): FY19 2,867; FY20 2,865; FY21 2,878; FY22 2,886; FY23 2,877; FY24 2,928; later rows show 2,888 / 2,983 / 2,993 / 3,062 / 3,089 in the table sequence
- Budgeted Staff FTE (Table 8, FY19–FY24 summary):
  - Structural (FY19–FY24): 2,867; 2,878; 2,877; 2,888; 2,993; 3,089
  - Structural - Non-Augmentation (FY19–FY24): 2,867; 2,878; 2,877; 2,888; 2,939; 2,969
  - Structural Augmentation (FY23, FY24): 54; 119
  - Temporary (FY19–FY24): 31; 44; 134; 192; 166; 118
  - Transitional (FY19–FY24): 31; 44; 43; 57; 78; 75
  - Crisis (FY21–FY24): 90; 135; 88; 43
  - Donor financed (FY19–FY24): 85; 91; 98; 100; 111; 109
  - Grand Total (Budgeted Staff FTE, FY19–FY24): 2,983; 3,013; 3,108; 3,180; 3,270; 3,316
- Externally financed FTEs by department (Table 9): total externally financed FTEs reported across years (selected totals): FY19 Total 93; FY20 96; FY21 94; FY22 114; FY23 111; FY24 126; FY24 Approved 109

### Business Travel and Seminar Expenditures, FY19–24 (Table 10)
- By type of cost (FY19 / FY20 / FY21 / FY22 / FY23 / FY24 Budget):
  - Total: 116 / 86 / 2 / 12 / 92 / 135
  - Transportation: 68 / 51 / 1 / 8 / 59 / -
  - Per diem: 48 / 35 / 0 / 4 / 33 / -
- By type of financing (FY19 / FY20 / FY21 / FY22 / FY23 / FY24 Budget):
  - Fund-financed: 70 / 50 / 2 / 11 / 55 / 80.8
  - Externally financed: 46 / 36 / 0 / 2 / 37 / 54
- By department (FY19 / FY20 / FY21 / FY22 / FY23 / FY24 Budget):
  - Area: 29 / 22 / 1 / 6 / 24 / 31
  - TA functional: 65 / 50 / 0 / 2 / 50 / 71
  - Support and Governance: 9 / 5 / 0 / 2 / 8 / 17
- Memorandum item: Business travel and seminar expenditures as percent of total gross expenditures:
  - FY19 8.6; FY20 6.4; FY21 0.1; FY22 0.9; FY23 6.0; FY24 7.9

### Gross Administrative Spending by FTF FY22–24 (Table 11)
- Total by FTF (selected rows, millions of U.S. Dollars):
  - Country Operations (Estimated Resources FY24 / Outturn FY23 / Outturn FY22 / Outturn FY23 percent): 602.4 / 529.4 / 645.4 / 641.4 / 705.3; percent columns show 41.3 / 39.3 / 41.3 / 42.1 / 41.3 across FY22–FY24 context
  - Bilateral Surveillance (FY24 Estimated Resources 269.2; FY23 Outturn 254.7; FY22 Outturn 248.9)
    - Of which Article IV Consultations (FY24 Estimated Resources 180.7; FY23 Outturn 172.1; FY22 Outturn 167.0)
  - Lending & Other Engagement (FY24 Estimated Resources 186.2; FY23 Outturn 178.1; FY22 Outturn 170.1)
    - Programs and Facilities - General Resources (FY24 Estimated Resources 100.6; FY23 Outturn 95.6; FY22 Outturn 92.1)
    - Programs and Facilities - PRGT Resources (FY24 Estimated Resources 73.4; FY23 Outturn 70.9; FY22 Outturn 66.8)
  - Capacity Development (FY24 Estimated Resources 249.8; FY23 Outturn 208.6; FY22 Outturn 226.3)
    - Fund Financed: FY24 64.0; FY23 Outturn 59.1; FY22 Outturn 59.4
    - Externally Financed: FY24 185.9; FY23 Outturn 149.5; FY22 Outturn 166.9
  - Multilateral Surveillance - Global Coop./Standards (FY24 Estimated Resources 184.5; FY23 Outturn 174.4; FY22 Outturn 170.1)
    - Multilateral Surveillance (FY24 98.3; FY23 Outturn 94.5; FY22 Outturn 90.4)
    - Of which WEO (FY24 19.1; FY23 Outturn 18.7; FY22 Outturn 17.5)
  - Fund Governance and Fund Finances (FY24 Estimated Resources 172.7; FY23 Outturn 151.4; FY22 Outturn 158.3)
  - Corporate Functions (FY24 Estimated Resources 422.3; FY23 Outturn 404.6; FY22 Outturn 395.1)
  - Miscellaneous 2/ (FY24 Estimated Resources 22.0; FY23 Outturn 14.1; FY22 Outturn 20.7)
  - Center 3/ (FY24 Estimated Resources 73.6; FY23 Outturn 15.3; FY22 Outturn 58.8)
- Total (All FTFs):
  - Outturn FY22: 1,562.2
  - Outturn FY23: 1,521.8
  - FY24 Estimated Resources: 1,705.9
  - Percent of Total columns for FY22 and FY23 equal 100.0 in the table’s percent presentation

### Capital Expenditures and IT-Intensive Capital Spending (Tables 12–14)
- IT-Intensive Capital Spending, totals (Table 14):
  - Totals IT-Intensive Capital Spending: Total Approved 211.2; Total Spent in Previous Years (through FY23) 138.3; FY23 Outturn 45.0
  - Key Modernization Projects (and pre-reqs): Total Approved 106.5; Spent previously 72.2; FY23 Outturn 17.4
    - Nexus (New DM): 25.8 / 19.7 / 5.1
    - iDATA: 31.9 / 17.2 / 6.8
    - IDW-Related Modules / DWR: 9.0 / 0.6 / 0.1
    - Intranet: 1.2 / 1.1 / 0.7
  - Pre-requisite/foundational projects: 16.4 / 13.7 / 3.3
  - New Investments: 64.6 / 31.5 / 14.3
    - iFin Mandatory Core Banking System Upgrade: 13.5 / 5.3 / 2.7
    - Oracle Exadata Upgrade: 2.4 / 1.4 / 1.5
    - PRISM (Procurement, Risk and Integrated Supplier Management): 5.8 / 1.0 / 1.0
    - Robotic Process Automation (RPA) Second Phase: 1.5 / 1.1 / 0.4
  - Infrastructure end-of-life: 40.2 / 34.6 / 13.3
  - PC Refresh & Hybrid Model: 16.1 / 14.7 / 8.7
  - Other IT projects and security items listed with exact approved / prior spend / FY23 outturn figures (e.g., Proactive Crown Jewels (CJ) Protection 6.4 / 2.9 / 2.1; Modernizing to a cloud-based Single Sign On 0.9 / 0.2 / 0.4)
- Capital expenditures on Facilities Projects (Table 13, FY23):
  - FY23 Total Available Funds 72.6; FY23 Outturn 38.0; Lapsed Funds 7.5; Remaining Funds 27.1
  - New Investments: Available 14.6; Outturn 11.2; Remaining 3.4
  - Lifecycle, Repair, Recurring: Available 48.2; Outturn 25.6; Lapsed 7.0; Remaining 15.6
  - Contingency and Planning Reserves: Available 4.9; Outturn 1.2; Lapsed 0.5; Remaining 3.2
  - Unallocated Pool: Available 4.9; Outturn -; Remaining 4.9

*Source: OBP, PeopleSoft Financials, TRACES, TIMS, IBBIS, CSF, ITD, and staff estimates (as presented in Annex III statistical tables).*

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_Source: https://www.imf.org/-/media/files/publications/pp/2023/english/ppea2023045.pdf_