## EXECUTIVE SUMMARY

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---

### FY24 Context and Global Environment
- FY24 marked by continued global uncertainty and slow, uneven economic recovery.
- Multiple shocks, including conflicts in Ukraine and the Middle East, contributed to geopolitical fragmentation, high debt levels, elevated interest rates, and risks to the economic outlook.
- The Managing Director’s Global Policy Agenda (April 2023 and October 2023) underscored these challenges and the Fund’s role in supporting the membership.

### IMF Response and Key Operational Outputs
- Intensified policy engagement, sustained high demand for financial assistance, and increased capacity development (CD).
- Operational outcomes:
  - 33 approved financing arrangements, 13 of which include climate-related operations.
  - 132 Article IV consultations completed.
  - 7 FSAPs completed.
  - CD delivered to 175 countries.
- Analytical and policy work supported country advice and international collaboration on cross-border issues.

### Budget Execution and Financing
- Net administrative budget execution: 100.0 percent in FY24.
  - General budget (excluding OED and IEO) execution: 100.6 percent.
- Net administrative spending: $1.41 billion.
- Externally financed spending (mainly CD): $216 million; execution of the $250 million envelope: 86.2 percent.
- Drawdown: $8 million one-off carryforward resourcing associated with prior-year underspend.
- Second allocation of three-year augmentation: $28.7m.
- Full use of resources under the first two years of the three-year augmentation; reallocation of about 3.6 percent of budget resources to meet priority needs.
- General carryforward (FY24): 72.

### Capital and Investment Spending
- FY24 capital spending: $110.5 million (up 16 percent relative to FY23).
  - Facilities spending: $49.4 million (up 30 percent to $49 million referenced elsewhere), focused on headquarters space reconfiguration, audio visual and building systems, and field offices.
  - IT-intensive spending: $61.1 million (rose 7 percent), including cloud licenses; FY24 IT-intensive share: 55 percent of capital (direct & cloud).
- Capital spending composition:
  - Facilities: $49.4 million; carryover to FY25: $25.1 million.
  - IT-Intensive (Direct + Cloud): $61.1 million; carryover to FY25: $16.5 million.
  - Cloud Capital Equivalent (FY24 Outturn): $19.4 million.

### Work Pressures, Staffing, and Operational Trade-offs
- Persistent elevated work pressures despite moderation from pandemic peaks.
  - Average overtime (staff only): 11.3 percent in FY24 (above pre-crisis rate of 10 percent and Board-endorsed risk tolerance).
  - Annual leave use has recovered.
  - Health and Wellness Survey: a significant and rising minority rate their mental health as fair, poor, or very poor; work hours and high workload/demands are key stressors.
  - Higher overtime among senior level staff and low uptake of training are concerns.
- Staffing:
  - Total staff rose by 2.7 percent (79 staff) in FY24 and 11.4 percent (313 staff) since FY20.
  - End-FY24 Fund-wide vacancy rate: 1.5 percent (45 vacancies) versus 0.5 percent (14 vacancies) in FY23.
  - Fund-financed long-term contractuals and experts increased by 8 percent in FY24; total increase since FY20: 46 percent (fund-financed) and 33 percent (including externally funded).
- Reprioritization and mitigation:
  - FY24 budget formally reallocated about $50 million in activity (4 percent of the NAB).
  - Additional $8.7 million allocated from central reserves for urgent in-year needs (Ukraine work, COP28 participation, internal safeguards implementation, resource mobilization and concessional financing policy work, and cyber-risk work).
  - Departments met most in-year needs through unprogrammed internal reprioritization, including rationalization of analytical work, reduced training/professional development, reductions in mission size, and increased use of hybrid missions.
- Implication: Withdrawal of temporary crisis resourcing while engagement intensity remains elevated creates difficult trade-offs and requires close monitoring of execution, flexibility to reprioritize, and intensified Board dialogue on medium-term strategic priorities.

### Budget Changes and Strategic Priorities
- Second of three augmentation tranches allocated in FY24 to support structural increases in work on:
  - climate,
  - digital money,
  - macrofinancial surveillance,
  - inclusion and gender,
  - fragile and conflict-affected states.
- Temporary pandemic-related crisis resourcing continued to be unwound, partially reducing net impact of structural increases.
- FY24 reallocations and departmental reprioritizations aimed to free space for critical needs and accelerate ramp-up in key issue areas.

### FY24 Spending Patterns and Output Areas (NAB context)
- FY24 net administrative budget outturn increased by $48 million and 3 percent excluding travel ($64 million and 4 percent including travel) relative to FY23.
- Growth driven largely by increases in direct country operations (notably CD operations) and policy and financial work.
- Spending composition (gross administrative spending shares shown in source):
  - Direct Country Operations: 44
  - Bilateral Surveillance (BiS): 40
  - CD (Capacity Development): 33
  - Multilateral Surveillance & Global Standards (MSGS): 11
  - Policy & Analytics (PA): 8
  - Fund Governance & Finances (FGF): 10
  - Corporate Functions (CFX): 26
- Spending by input (gross administrative spending shares shown in source):
  - Personnel: 77%
  - Travel: 8%
  - IT, Building and Others: 14%
- Travel and mission adjustments:
  - In-person missions: 5,152 to 195 countries.
  - Adoption of hybrid missions and reductions in mission size where reprioritized.
  - Average mission size: 2.1 persons (pre-crisis FY20: 1.7 persons).
  - Mission size distribution (FY24, Percent): 1-2 Persons, 82; 3-5 Persons, 13; 6-10 Persons, 4; >10 Persons, 1.

### Memorandum and Notable Budget Metrics (as presented)
- Gross Fund Financed (FY24 outturn): 1,450
- Net administrative budget (FY24 outturn): 1,410
  - o/w FY Augmentation: 29
- Gross administrative envelope (FY24 outturn): 1,666
- Capital (FY24 outturn): 110
- Total Net Utilization (percent): 100.0
- General (excl. OED/IEO) utilization (percent): 100.6

### Structural Implications and Next Steps
- Continued focus on:
  - Strengthening strategic budget data to understand costs of new activities and inform decisions.
  - Reinforcing management-led reprioritization at departmental level with a medium-term lens.
  - Implementing mental health strategy and other measures to mitigate staff work pressures.
- Paper structure for further detail (sections listed in source).

---

### 7. Direct Country Operations ($ 719 million, 44 percent of total)

### Overview and Aggregate Change
- Direct country operations account for $ 719 million, 44 percent of total.
- Real spending on direct support rose 5 percent ($33 million) in FY24 excluding travel and 7 percent ($44 million) including travel.

### Bilateral Surveillance
- Total: $285 million; 40 percent of direct country support (direct cost excluding travel).
- Real increase: 5 percent ($13 million) excluding travel; 6 percent including travel.
- Bilateral consultations: 132 (117 in FY23).
- FSAPs completed: 7 (as in FY23).
- Other bilateral surveillance activity rose about 5 percent excluding travel.

### Financial Support (Lending)
- Total: $194 million; 27 percent of direct country support.
- UCT arrangements:
  - 33 UCT arrangements approved (versus 31 in FY23): 30 drawing operations and 3 precautionary.
  - Active UCT financial arrangements total: 66 during FY24 (51 in FY23).
- Non-financial programs: expenditures decreased relative to FY23 (PFAs and PCIs: 1 of each in FY24 vs 4 and 3 in FY23).
- RSF operations:
  - 13 of the 33 UCT arrangements included RSF operations (versus 5 in FY23), bringing total RSF operations to 18 countries by end FY24.
  - RSF-related spending (excluding trust management and Fund overheads and including pre-program work) estimated at $11.2 million versus $7 .0 million originally projected.

### CD Delivery
- Total CD: $240 million; 33 percent of direct country support.
- FY24 growth in CD direct country spending: 13 percent to $59 million excluding travel and 12 percent including travel.
- Overall FY24 CD direct spending (including related policy, analytic, and financial operations): $ 382 million.
- IMF01/IMF02 split: 43/5 7 between IMF01/IMF02 ($163 million/$219 million) — source text spacing preserved.
- With Fund-wide overheads (largely Fund-financed), CD spending totaled $526 million, split 58/42 between IMF01/IMF02.
- External funds mainly channeled through multi-partner vehicles, including regional CD centers and global thematic funds such as the Global Public Finance Partnership launched in Spring 2024.
- CD share of overall spending (including related overheads): 32 percent.
- Workstream composition:
  - Domestic Revenue Mobilization, 26 percent
  - Monetary and financial systems, 21 percent
  - Public Financial Management & Expenditure Policy, 19 percent
  - Statistics, 13 percent
  - Legislative frameworks, 5 percent
  - Fiscal CD accounts for about 48 percent of total CD in other descriptions.

### Average Country Spending (exact figures preserved)
- Average direct country spending excluding travel increased 6 percent in FY24 to $2.8 million (8 percent to $3.1 million including travel).
- Average Fund-financed spending excluding travel increased 6 percent to $2.1 million (7 percent to 2.3 million including travel).
- By engagement type:
  - Standard surveillance: $1.5 million, up 6 percent.
  - Intensive surveillance: $2.4 million, up 7 percent.
  - Countries with Fund arrangement: $4.2 million, up 12 percent.
- Vulnerable countries:
  - Average spending increased to $4.2 million (up 25 percent) excluding travel ($4.7 million and 26 percent, including travel).
- FCS and small states:
  - FCS average direct spending: $3.0 million (up 7 percent) excluding travel ($3.4 million and 9 percent including travel).
  - Small developing countries average spending: $2.0 million (up 6 percent) excluding travel ($2.3 million and 7 percent including travel).
- By income level (excluding travel):
  - Emerging markets: $2.8 million, up 7 percent.
  - Low-income developing economies: $3.7 million, up 6 percent.
  - G7: $2.5 million, up 6 percent.
  - G20: $3.4 million, up 14 percent.
  - Other advanced economies: $1.3 million, up 9 percent.
- Including travel, respective increases were: 8 percent ($3.1 million); 7 percent ($4.3 million); 9 percent ($2.7 million); 17 percent ($3.8 million); and 10 percent ($1.5 million).

### Regional Direct Country Spending Shares (CD percent of direct country support, FY24)
- AFR: 36 percent
- APD: 22 percent
- EUR: 6 percent
- MCD: 15 percent
- WHD: 13 percent
- Multi-Regional: 8 percent
- Observations:
  - AFR highest direct country spending, followed by APD.
  - Increases mainly from lending (AFR, WHD), surveillance (APD, EUR), and CD (MCD).
  - AFR and APD largest beneficiaries of CD; MCD saw strongest growth since FY22 in percentage terms.
  - Split between IMF01 and IMF02 funding varies by region.
  - Multiregional delivery (mainly training) majority supported by Fund-financing; other direct activities mainly funded externally.

### Other Major Spending Categories (non–direct country)
- Multilateral surveillance: $101 million, 6 percent of total.
  - FY24 spending excluding travel: $99.2 million (up 1 percent; up 2 percent including travel).
- Global cooperation and standards: $87 million, 5 percent of total.
- Policy: $78 million, 5 percent of total.
  - FY24 spending excluding travel: $76.4 million (up 10 percent; up 10 percent including travel).
- Analytical work: $58 million, 4 percent of total.
  - FY24 spending excluding travel: $57.6 million (up 2 percent; up 2 percent including travel).
- Governance and finances: $166 million, 10 percent of total.
  - FY24 spending excluding travel: $156.2 million (up 3 percent; up 5 percent including travel).
- Corporate functions: $433 million, 26 percent of total.
- Center: $16 million, 1.1 percent of the NAB.
  - Centrally funded expenditures rose in real terms by 2.8 percent ($0.6 million), excluding impact of RST-related receipts.
  - New RST Trust Administration fees: $5.1 million affect central accounts.

---

### FY24 Spending by Issue Area

### Overview
- Fund-financed spending in selected issue areas was above expectations, supported by overtime and unprogrammed internal reallocations.
- Largest overages: climate, debt, and macrofinancial/related financial work.
- Budget/expectation data for externally funded activities not currently available.

### Debt
- Fund-financed direct spending in FY24: $51 million (about 6 percent of total); up $4 million from last year and $11 million above expectations.
- CD spending: $24 million, including $14 million in external financing (about 8 percent of total external funding).
- Fund-financed spending split: 52 percent area departments; 31 percent CD-functional departments; 16 percent non-CD functional departments.
- Externally financed spending concentrated in MCM, FAD, and STA.

### Governance/Anticorruption
- Fund-financed spending: $25 million (3 percent of total); up $4 million since last year and $3 million above expectations.
- CD spending: $13 million, including $10 million external funding (6 percent of total external funding).
- Fund-financed spending split: 59 percent area departments; 33 percent CD-functional; 9 percent non-CD functional.

### Climate
- Fund-financed spending: $57 million (about 7 percent of total); up over $10 million from FY23 and $13 million above expectations.
- CD totaled over $21 million, including $11 million in externally funded resources (6 percent of total).
- Fund-financed spending split: 42 percent area departments; 39 percent CD-functional departments; 19 percent non-CD functional departments.
- Climate deliverables:
  - Climate deep dives present in 22 Article IV reports (target: 15-20).
  - Coordination with the Coalition of Finance Ministers for Climate Action and COP meetings.
- RSF / Lending (Climate-related delivery):
  - End-FY24: 18 countries with RSF arrangements approved (13 in FY24), plus another 13 in pre-program stage.
  - Departments estimate FY24 RSF direct delivery costs at $11.2 million (versus projection $7.0 million).
  - RST trust administration costs: $5 million (in line with expectations).
  - Area departments account for 67 percent of RSF reported cost; spending concentrated in AFR (36 percent) and WHD (15 percent).

### Digital Money
- Fund-financed spending: $22 million (about 3 percent of total); up $3 million and about $2 million above expectations.
- CD work: $14 million, including just under $10 million externally funded.
- Fund-financed spending split: 26 percent area departments; 58 percent CD-functional departments (mainly MCM); 13 percent non-CD functional departments; 3 percent support department (ITD).
- Deliverables: CBDC Handbook launched; research on cross-border payment platforms; guidance on crypto asset risk management.

### Macrofinancial Surveillance and Related Financial Work
- Fund-financed spending: $120 million (14 percent of total); up $10 million relative to FY23 and $29 million above projections.
- Fund-financed spending split: 26 percent area departments; 67 percent CD-functional departments (MCM alone 58 percent); 7 percent non-CD functional departments.
- Focus: integration of macrofinancial analysis into bilateral surveillance, toolkit development, training, IPF pilots.

### Inclusion and Gender
- Fund-financed spending: $22 million (3 percent of total); up just under $5 million relative to FY23 and $6 million above expectations.
- CD spending: $7 million, including $5 million in external funding.
- Fund-financed spending split: 54 percent area departments; 27 percent CD-functional; 20 percent non-CD functional departments.
- Focus: pandemic impact analysis, gender, labor market and inequality, social spending toolkits, gender data hub, guidance on mainstreaming gender.

### Fragile and Conflict-affected States (FCS)
- Fund-financed spending on 39 FCS countries: $86 million (up 22 percent); up $15 million and $7 million above expectations.
- CD spending: $54 million, including $41 million externally financed.
- Total includes $115 million in direct country work, 42 percent of which is CD.
- Fund-financed spending split: 62 percent area departments (particularly AFR and MCD); 25 percent CD-functional departments; 13 percent non-CD functional departments.
- Augmentation-supported increases: field presence, HQ-based integration of CD and surveillance, strengthened centralized policy function.

### Augmentation-supported Highlights (selected)
- Climate Change:
  - 13 RSF approvals (target: 10-15).
  - 22 climate deep dives in Article IVs (target: 15-20).
  - 7 FSAPs (target: 4).
  - New climate data and tools (e.g.: Climate Change Dashboard; Portwatch).
- Digital Money:
  - 9 Article IVs and 5 FSAPs included CBDC/crypto deep dives.
  - About 25 countries received CD on modernizing payment systems and digital money.
- Macrofinancial Surveillance:
  - Improvement in coverage and quality of macrofinancial analysis relative to FY23.
  - New process to integrate FSAP findings into bilateral surveillance.
- Inclusion/Gender:
  - Five Article IVs had a gender deep dive; 30 included light touch; 44 bilateral consultations covered inequality and social issues.
- FCS:
  - 9 Country Strategy Engagements (CES) completed and shared with the Board.
  - Nine new Fund arrangements and emergency financing for three members approved in 2023 with total commitment of US$17.8 billion.
  - 17 LTX placed in RTACs in FY24 (in addition to 12 in FY23).
- Corporate Departments:
  - Support departments and COM received $4 million in FY24 to strengthen recruitment, corporate services, IT, and communications.

---

### Functional, Personnel, Travel, and Capital Details

### Functional and CD Departments Spending
- Functional non-CD Departments’ spending increased by 5 percent year-on-year.
  - Drivers: intensive policy review work; strengthening Fund finances and governance; analytical work and tool development; increased lending operations.
- Functional CD Departments increased spending by 5 percent in FY24.
  - Drivers: support to area departments on complex surveillance cases; analytical work; high CD demand in traditional and emerging areas.
- Support Departments: Administrative spending rose 1 percent; included $2.5 million targeted initial investments on machine learning and Generative AI capabilities.
- Other small offices: spending increased, aligned with additional resources for dispute resolution system offices and risk functions.
- Executive Board and IEO spending broadly aligned to FY23.

### FY24 Budget Utilization and Drivers (Table 2 figures preserved)
- Fund-Financed spending (Millions of FY24 U.S. dollars):
  - Total Gross: Structural Budget 1,455; Outturn 1,450; Utilization 99.6
  - Personnel: Structural Budget 1,118; Outturn 1,137; Utilization 101.7
  - Travel: Structural Budget 93; Outturn 90; Utilization 96.5
  - Buildings/IT/Other: Structural Budget 227; Outturn 224; Utilization 98.5
  - Contingency: Structural Budget 170; Outturn -
  - Receipts: Structural Budget -44; Outturn -40; Utilization 89.6
  - Total Net: Structural Budget 1,411; Outturn 1,410; Utilization 100.0
- Memorandum:
  - Gross budget envelope utilization: Structural Budget 1,551; Outturn 1,450; Utilization 93.5
  - General (excl. OED/IEO): Structural Budget 1,316; Outturn 1,325; Utilization 100.6
  - Capital Budget: Structural Budget 108; Outturn 110; Utilization 102.0

### Personnel
- Staff accounted for 68 percent of gross Fund-financed expenditures; non-staff personnel (excluding vendors) another 9 percent; total $1.1 billion or 78 percent of gross Fund-financed expenditures.
- Total including externally funded personnel: $1.29 billion and 77 percent of total gross expenditures.
- FY24 adjusted budget deflator: 6.2 percent, set based on average U.S. inflation during calendar year 2022 under an updated methodology linking the deflator to actual price movement with a one-year lag.

### Travel and Missions
- Fund-financed travel budget execution: 96.5 percent.
- In-person missions: 5,152 in FY24.
- Business travel (excluding HR- and seminar-related travel): $56 million in FY24 (compared to $46 million in FY23 and $47 million pre-crisis (FY20) in FY24 dollars).

### Buildings, IT, and Other Services
- Administrative budget execution on buildings, IT, and other services: 98.5 percent.
- Underspend partly offset by higher-than-budgeted cybersecurity, IT purchases, Giving Program, commercial data, cloud support, consulting services, and departmental sundries.

### Security-related Administrative Spending
- Fund-wide security spending increased marginally by $0.6 million relative to FY23.
- IT security increase: $2.5 million to strengthen cyber protection.

### Receipts (Table 4 selected items)
- Total receipts (FY24 Outturn): 258.7 (Structural Budget 273.9; FY23 Outturn 295.0).
- Externally financed CD (direct cost) FY24 Outturn: 218.8.
- General receipts FY24 Outturn: 39.8.
- Trust fund fees FY24 Outturn: 15.3.
- SRP Administration FY24 Outturn: 6.4.
- RST Trust Administration FY24 Outturn: 5.1.

### Capital Spending — Detailed Items and Tables
- Total capital funds appropriated between FY22-24 available in FY24: $153.1 million (Facilities $74.6 million; IT-intensive $78.5 million; Cloud Capital Equivalent licenses $20.3 million).
- FY24 spending totaled $110.5 million:
  - $49.4 million in facilities; carryover to FY25: $25.1 million.
  - $61.1 million in IT-intensive projects; carryover to FY25: $16.5 million.
- Table 5 (Nominal Capital Expenditures, FY23-24, Millions of U.S. dollars):
  - Total Capital: FY23 Outturn 95.2; Approved Funds Available 108.2; FY24 Outturn 110.5; Carryover to FY25 41.7
  - Facilities: FY23 Outturn 38.0; Approved Funds Available 47.4; FY24 Outturn 49.4; Carryover to FY25 25.1
  - IT-Intensive (Direct + Cloud): FY23 Outturn 57.2; Approved Funds Available 60.8; FY24 Outturn 61.1; Carryover to FY25 16.5
  - Direct Capital Investments (IT): FY24 Outturn 41.7; Carryover to FY25 16.5
  - Transformation (IT): FY24 Outturn 18.6; Carryover to FY25 8.9
  - Cloud Capital Equivalent: Approved 12.7; Funds Available 20.3; FY24 Outturn 19.4; Carryover 0.9

### IT-Intensive Projects (FY24 specifics)
- Transformation projects (direct IT-intensive spending $18.6 million):
  - HR Modernization: $2.6 million.
  - iData: $9.3 million.
  - Nexus: $4.5 million.
  - iDW-related projects: $2.2 million.
  - Common Review System: $1.1 million.
  - Intranet update project: $1.2 million.
- Other IT investments and lifecycle replacements ($14 million; including $2.5 million in cybersecurity).
- Cloud license spending (CCE) FY24 Outturn: $19.4 million ($12.7 million in FY23).

---

### Annex I — Technical Annex (selected points)

### Budget Process, Fiscal Year Definition, and Carryforward Limits
- Budget process begins with the Managing Director’s Global Policy Agenda and IMFC Communiqué; budget translates priorities into allocations across outputs, issue areas, departments, and inputs.
- Financial Year (t): May 1(t-1) to April 30(t). E.g., FY24 = May 1, 2023 to April 30, 2024.
- Gross Administrative Envelope defined as Net Administrative budget (structural Fund-financed) plus Receipts (general receipts + donor funding) plus Carryforward and other transitional transfers.
- Carryforward (CF) limits evolution:
  - General CF limit history: rose to 6 percent after GFC; reverted to 3 percent in FY12; Board approved increase to 5 percent in 2020; then to 8 percent in 2021; reduced to 7 percent in FY23 and 6 percent in FY24, and 5 percent in FY25, aiming to revert to 3 percent over time.
  - IEO CF limit varied between 5 and 8 percent since FY21.
  - OED CF limit: maximum 20 percent of the net administrative budget for each office (or dollar equivalent of two Advisor FTE); OED central carryforward discontinued effective FY21; CF limit to increase from 20 percent to 30 percent for resources from FY25 to FY26, to be reviewed in FY27.
- Carryforward formula for the general budget:
  - CFt = min (Ut, Bt x Xt)
  - Where Ut = underspend in current FY (Bt + CFt-1 – Et); Bt = general net administrative budget in current FY; CFt-1 = carryforward from previous FY; Et = net expenditures in current FY; Xt = limit expressed as a percentage of the current year’s general net administrative budget (approved by the Executive Board).

### Deflator Methodology and Capital Budget Scope
- Since FY21, the Fund deflator based on U.S. CPI data underlying the January WEO update.
- Deflator methodology updated beginning in FY24 to reflect actual average US CPI in the preceding CY with a one-time transitional adjustment in FY24.
- Nominal budget increase consistent with average CY23 US CPI growth: 4.1 percent.
- Capital budget:
  - Purpose: investments in IT and building improvements and repairs.
  - Availability: capital budgets available for three years, after which unspent appropriations lapse.
  - Cloud Capital Equivalent (CCE): sub-category within capital budget for cloud subscription costs; rationale linked to migration to cloud-hosted platforms.

*Prepared by an Office of Budget and Planning (OBP) team led by Andrea Salerno and Maria Albino, under the supervision of Emre Alper (source document: EXECUTIVE SUMMARY; FY2024—BUDGET OUTTURN excerpts).*

### EXECUTIVE SUMMARY

### EXECUTIVE SUMMARY

### FY24 Context and Global Environment
- FY24 was marked by continued global uncertainty and slow, uneven economic recovery.
- Multiple shocks, including conflicts in Ukraine and the Middle East, added pressures to an environment characterized by geopolitical fragmentation, high debt levels, elevated interest rates, and risks to the economic outlook.
- The Managing Director’s Global Policy Agenda (April 2023 and October 2023) underscored these challenges and the Fund’s role in supporting the membership.

### IMF Response and Outputs
- The Fund maintained intensified policy engagement, met sustained high demand for financial assistance, and increased capacity development (CD).
- Key operational outcomes:
  - 33 approved financing arrangements, 13 of which include climate-related operations (RSF operations referenced elsewhere).
  - 132 Article IV consultations completed.
  - 7 FSAPs completed.
  - CD delivered to 175 countries.
- Analytical and policy work provided foundations for country advice and international collaboration on cross-border issues.

### Budget Execution and Financing
- Execution of the Fund’s overall net administrative budget was 100.0 percent in FY24 (100.6 percent for the general budget, excluding the Office of Executive Directors and the Independent Evaluation Office).
- Execution reflected the drawdown of $8 million in one-off carryforward resourcing associated with underspend in prior years.
- Full use of resources provided under the first two years of the three-year augmentation and reallocation of some 3.6 percent of budget resource to meet priority needs.
- Net administrative spending: $1.41 billion.
- Externally financed spending (mainly CD): $216 million, representing 86.2 percent execution of the $250 million available envelope.
- Second allocation of three-year augmentation: $28.7m.

### Capital and Investment Spending
- Capital spending rose by 16 percent relative to FY23 to $110.5 million.
- Facilities spending rose 30 percent to $49 million, focused on headquarters space reconfiguration, audio visual and building systems, and field offices.
- IT-intensive spending rose 7 percent to $61 million, with slightly lower direct spending than FY23 offset by a rise in spending on cloud licenses; expenditures focused on modernization, cyber security, and hybrid needs.
- FY24 capital spending: $110.5 million; 55 percent on IT-intensive (direct & cloud).

### Work Pressures, Staffing, and Operational Trade-offs
- Persistent elevated work pressures despite moderation from pandemic peaks:
  - Average overtime declined to 11.3 percent in FY24 (staff only), above pre-crisis rate of 10 percent and Board-endorsed risk tolerance.
  - Annual leave use has recovered.
  - Health and Wellness Survey indicates a significant and rising minority of staff rate their mental health as fair, poor, or very poor; work hours and high workload/demands are key stressors.
  - Higher overtime among senior level staff and low uptake of training remain concerning.
- Staffing levels materially increased (see Section V).
- Reprioritization and mitigation actions:
  - FY24 budget formally reallocated about $50 million in activity (4 percent of the NAB).
  - An additional $8.7 million was allocated from central reserves to meet urgent in-year needs (Ukraine work, COP28 participation, internal safeguards implementation, resource mobilization and policy work on concessional financing, and cyber-risk work).
  - Most in-year needs met through unprogrammed internal reprioritization at departmental level, including rationalization of analytical work, reduced training/professional development, elimination of slack for analytic innovation, reductions in mission size, and increased use of hybrid missions.
- Implication: Withdrawal of temporary crisis resourcing while engagement intensity remains elevated creates difficult trade-offs and puts a premium on close monitoring of execution, flexibility to reprioritize, and intensified dialogue on medium-term strategic priorities with the Board.

### Budget Changes and Strategic Priorities
- The second of three augmentation tranches was allocated in FY24, supporting structural increases in work on:
  - climate,
  - digital money,
  - macrofinancial surveillance,
  - inclusion and gender,
  - fragile and conflict-affected states.
- Temporary crisis resourcing addressing pandemic-related needs continued to be unwound, partially reducing the net impact of structural increases on the overall resource base.
- The FY24 budget reallocations and department-level reprioritizations aimed to free up space for critical needs and accelerate ramp-up in key issue areas (see Section III).

### FY24 Spending Patterns and Output Areas
- Broad-based increase: FY24 net administrative budget outturn increased by $48 million and 3 percent excluding travel ($64 million and 4 percent including travel) relative to FY23.
- Growth largely attributable to increases in direct country operations (notably CD operations) and policy and financial work.
- Spending composition (gross administrative spending shares shown in source):
  - Direct Country Operations: 44
  - Bilateral Surveillance (BiS): 40
  - CD (Capacity Development): 33
  - Multilateral Surveillance & Global Standards (MSGS): 11
  - Policy & Analytics (PA): 8
  - Fund Governance & Finances (FGF): 10
  - Corporate Functions (CFX): 26
- Spending by input (gross administrative spending shares shown in source):
  - Personnel: 77%
  - Travel: 8%
  - IT, Building and Others: 14%
- Travel and mission adjustments: steady progress of in-person engagements with 5,152 in-person missions to 195 countries; adoption of hybrid missions and reductions in mission size where reprioritized.

### Memorandum and Notable Metrics
- Net administrative budget and related table items (as presented in the source Table 1):
  - Gross Fund Financed (FY24 outturn): 1,450
  - Net administrative budget (FY24 outturn): 1,410
  - o/w FY Augmentation: 29
  - Gross administrative envelope (FY24 outturn): 1,666
  - Capital (FY24 outturn): 110
  - Total Net Utilization (percent): 100.0
  - General (excl. OED/IEO) utilization (percent): 100.6
  - General carryforward (FY24): 72

### Structural Implications and Next Steps
- Continued focus on:
  - Strengthening strategic budget data to understand costs of new activities and inform decisions.
  - Reinforcing management-led reprioritization with departments with a medium-term lens.
  - Implementing mental health strategy and other measures to mitigate staff work pressures.
- Paper structure noted for further detail:
  - Section II: FY24 administrative spending by key output areas.
  - Section III: Spending in selected areas.
  - Section IV: Spending by department.
  - Section V: Outturn by key input category.
  - Section VI: Capital budget developments.

*Prepared by an Office of Budget and Planning (OBP) team led by Andrea Salerno and Maria Albino, under the supervision of Emre Alper (source document: EXECUTIVE SUMMARY).*

### 7. Direct Country Operations ($ 719 million, 44 percent of total).   Real spending on direct

### 7. Direct Country Operations ($ 719 million, 44 percent of total)

### Overview
- Real spending on direct support to members through lending, surveillance, and CD rose 5 percent ($33 million) in FY24, excluding travel and 7 percent ($44 million) including travel.
- Direct country operations account for $ 719 million, 44 percent of total.

### Bilateral surveillance
- Total: $285 million, 40 percent of direct country support (direct cost excluding travel).
- Real increase: 5 percent ($13 million) excluding travel; 6 percent including travel.
- Drivers:
  - Intensified policy dialogue and mainstreaming of new emerging areas.
  - Bilateral consultations numbered 132 (117 in FY23).
  - FSAPs completed: 7 (as in FY23).
  - Other bilateral surveillance (policy dialogue and country-specific analysis outside Article IV cycle) rose by about 5 percent excluding travel.

### Financial support (Lending)
- Total: $194 million, 27 percent of direct country support.
- UCT arrangements:
  - 33 UCT arrangements approved (versus 31 in FY23), of which 30 were drawing operations and 3 precautionary.
  - Active UCT financial arrangements total: 66 during FY24 (51 in FY23).
- Non-financial programs: expenditures decreased relative to FY23, driven by lower activity on PFAs and on PCIs (1 of each in FY24 vs 4 and 3, respectively in FY23).
- RSF operations:
  - 13 of the 33 UCT arrangements included RSF operations (versus 5 in FY23), bringing total RSF operations to 18 countries by end FY24.
  - RSF-related spending (excluding trust management and Fund overheads and including pre-program work) is estimated at $11.2 million versus $7 .0 million originally projected; difference driven by both a higher-than-anticipated number of arrangements and higher intensity of related work.

### CD Delivery
- Total: $240 million, 33 percent of direct country support.
- FY24 growth: CD direct country spending grew 13 percent in FY24 to $59 million excluding travel and 12 percent including travel.
- Funding source and totals:
  - Overall FY24 CD direct spending (including related policy, analytic, and financial operations): $ 382 million.
  - Split IMF01/IMF02: 43/5 7 between IMF01/IMF02 ($163 million/$219 million).
  - With Fund-wide overheads (largely Fund-financed), CD spending totaled $526 million, split 58/42 between IMF01/IMF02.
  - External funds mainly channeled through multi-partner vehicles, including regional CD centers and global thematic funds such as the Global Public Finance Partnership launched in Spring 2024.
- CD share of overall spending: Total CD spending, including related overheads, represents 32 percent of Fund spending, roughly equivalent to its pre-pandemic share.
- Workstream composition (Figure 5c):
  - Domestic Revenue Mobilization, 26 percent
  - Monetary and financial systems, 21 percent
  - Public Financial Management & Expenditure Policy, 19 percent
  - Statistics, 13 percent
  - Legislative frameworks, 5 percent
  - (Fiscal CD continues to provide the focus, making up about 48 percent of total CD when described elsewhere.)

### Average country spending
- Average direct country spending excluding travel increased by 6 percent in FY24 to $2.8 million (8 percent to $3.1 million including travel).
- Average Fund-financed spending excluding travel increased by 6 percent to $2.1 million relative to FY23 (7 percent to 2.3 million including travel).
- By engagement type:
  - Standard surveillance: $1.5 million, up 6 percent.
  - Intensive surveillance (near program and systemically important countries): $2.4 million, up 7 percent.
  - Countries with Fund arrangement: $4.2 million, up 12 percent.
- Vulnerable countries:
  - Average spending increased to $4.2 million (up 25 percent) excluding travel ($4.7 million and 26 percent, including travel), driven by lending support and CD delivery.
- Fragile and conflict-affected states (FCS) and small states:
  - FCS average direct spending rose to $3.0 million (up 7 percent) excluding travel ($3.4 million and 9 percent, including travel).
  - Small developing countries average spending rose to $2.0 million (up 6 percent) excluding travel ($2.3 million and 7 percent including travel).
- By income level (excluding travel):
  - Emerging markets: $2.8 million, up 7 percent.
  - Low-income developing economies: $3.7 million, up 6 percent.
  - G7: $2.5 million, up 6 percent.
  - G20: $3.4 million, up 14 percent.
  - Other advanced economies: $1.3 million, up 9 percent.
- Including travel, respective increases were 8 percent ($3.1 million); 7 percent ($4.3 million); 9 percent ($2.7 million); 17 percent ($3.8 million); and 10 percent ($1.5 million).

### Overall direct country spending by region
- Regional shares (CD percent of direct country support, FY24):
  - AFR: 36 percent
  - APD: 22 percent
  - EUR: 6 percent
  - MCD: 15 percent
  - WHD: 13 percent
  - Multi-Regional: 8 percent
- Observations:
  - AFR continues to have the highest direct country spending, followed by APD; EUR, MCD and WHD roughly equivalent.
  - Increases derived mainly from lending (AFR, WHD), surveillance (APD, EUR), and CD (MCD).
  - AFR and APD are the largest beneficiaries of CD; MCD saw the strongest growth since FY22 in percentage terms.
  - The split between IMF01 and IMF02 funding for direct operations varies by region, reflecting differing donor arrangements.
  - Direct spending on multiregional delivery, mainly training, is majority supported by Fund-financing; other direct activities are mainly funded externally.

### Other major spending categories (non–direct country)
- Multilateral surveillance: $101 million, 6 percent of total.
  - Spending excluding travel increased by 1 percent ($1.3 million) in FY24 to $99.2 million (up 2 percent including travel).
  - Research and flagship publications targeted economic interconnections and spillovers, policy shifts in systemic economies, implications of crypto, and risks and benefits of collateralized borrowing.
- Global cooperation and standards: $87 million, 5 percent of total.
  - Spending remained broadly stable, focused on AML/CFT support, global standard setting, methodologies, and manuals.
- Policy: $78 million, 5 percent of total.
  - Spending increased by 10 percent ($6.7 million) excluding travel in FY24 to $76.4 million (up 10 percent including travel).
  - Focus: improvements to the Fund’s lending toolkit, review of the precautionary instruments, debt restructuring, and completion of the CD strategy review.
- Analytical work: $58 million, 4 percent of total.
  - Spending excluding travel rose by 2 percent ($1.1 million) in FY24 to $57.6 million (up 2 percent including travel).
  - Focus: geo-economic fragmentation, commodity shocks, the integrated policy framework (IPF), and priority areas.
- Governance and finances: $166 million, 10 percent of total.
  - Spending excluding travel increased by 3 percent ($5.2 million) to $156.2 million (5 percent including travel).
  - Highlights: concluding the 16th General Review of Quotas, replenishment of the Poverty Reduction and Growth Trust (PRGT), addition of the 25th Board Chair.
- Corporate functions: $433 million, 26 percent of total.
  - Net administrative spending remained stable in FY24.
  - Work continued on HR, data, and knowledge management modernization; implementation of Institutional Safeguards Review (ISR) recommendations; strengthening oversight and risk management; services to support field offices; hybrid work model support; IT-intensive capital oversight and delivery; and related operational strategies.
- Center: $16 million, 1.1 percent of the NAB.
  - Centrally funded expenditures rose in real terms by 2.8 percent ($0.6 million), excluding impact of RST-related receipts.
  - New RST Trust Administration fees ($5.1 million) affect central accounts, with direct expenditures supporting fiduciary work in FIN, LEG and SPR.

### SECTION III — Spending in selected areas (overview and issue-area highlights)
- Focus: six issue areas — debt; governance/anti-corruption; climate; digital money; macrofinancial surveillance; inclusion/gender.
- Higher-than-expected spending:
  - Fund-financed spending is above expectations in each monitored area, with largest differences for climate, debt, and macrofinancial work.
  - Possible drivers: higher needs in early ramp-up stages, front-loading of activity anticipating augmentation funding, original underestimation of needs, and increases in underlying needs as circumstances change; reduced availability of travel-related savings from FY22.
- Departmental estimates (mutually exclusive basis):
  - Climate work has grown to an estimated 7 percent of overall Fund-financed activities.
  - Debt work is about 6 percent of overall Fund-financed activities.
  - Departments estimate externally financed CD spending totaling $50 million (almost one-third of total) in the five issue areas excluding macrofinancial surveillance (which is not funded externally).
- By country grouping:
  - Fund-financed support for fragile and conflict-affected states totaled $86 million in FY24, about 10 percent of direct spending.
  - Externally financed support for fragile states totaled $41 million, or 23 percent of total.

*Source: FY2024—BUDGET OUTTURN (excerpt).*

### 16. FY24 Spending by Issue Area. Fund-financed spending in these issue areas was above

### FY24 Spending by Issue Area

### Overview
- Fund-financed spending in selected issue areas was above expectations, supported by overtime and unprogrammed internal reallocations from other workstreams.
- Largest overages were for work on climate, debt, and macrofinancial/related financial work.
- Budget/expectation data for externally funded activities is not currently available.

### Debt
- Fund-financed direct spending in FY24 is estimated at $51 million (about 6 percent of total), up $4 million from last year and $11 million above expectations.
- CD spending of $24 million includes $14 million in external financing (about 8 percent of total external funding).
- Fund-financed spending split: 52 percent by area departments, 31 percent by CD-functional departments, and 16 percent by non-CD functional departments.
- This work accounted for 10 percent or above of direct Fund-financed activity for AFR and ICD.
- Externally financed spending concentrated in MCM, FAD, and STA.
- Focus areas:
  - Direct country support and policy work to reinforce the international architecture for sovereign debt, including strengthening the Common Framework.
  - Continued work for the rollout of the Sovereign Risk and Debt Sustainability Framework.
  - Review of the Debt Sustainability Framework for Low-Income Countries, addressing constraints to assisting countries with debt vulnerabilities, statistics, and guidance on collateral in debt financing in support of the G20 agenda.

### Governance/Anticorruption
- Fund-financed spending is estimated at $25 million (3 percent of total), up $4 million since last year and $3 million above expectations.
- CD spending of $13 million includes $10 million of external funding (6 percent of total external funding).
- Fund-financed spending split: 59 percent by area departments, 33 percent by CD-functional departments, and 9 percent by non-CD functional departments.
- This work accounted for over 10 percent of LEG’s direct Fund-financed activity.
- Externally financed CD concentrated in LEG and FAD.
- Focus: continued policy advice on governance and anti-corruption, financial integrity (e.g., AML/CFT and broader financial integrity risks) in country operations, and implementation of the FY23 Review of the 2018 framework for enhanced Fund engagement on governance, including finalizing a new round of governance assessments.

### Climate
- Fund-financed spending estimated at $57 million (about 7 percent of total), up over $10 million from FY23 and $13 million above expectations.
- CD totaled over $21 million, including $11 million in externally funded resources (6 percent of total).
- Fund-financed spending split: 42 percent by area departments, 39 percent by CD-functional departments, and 19 percent by non-CD functional departments.
- Climate spending encompasses near or above 10 percent of direct Fund-financed activity for EUR, ICD, STA, and RES.
- Externally financed spending concentrated in MCM, FAD, STA, and ICD.
- Surveillance/Policy/Analytic Work:
  - Priority deliverables under the Climate Strategy exceeded FY24 targets.
  - Climate deep dives present in 22 Article IV reports (target: 15-20), including continued inclusion of large emitters.
  - Policy work on fossil fuel exporters confronted with global decarbonization and integrating climate financing aspects into bilateral consultations.
  - Coordination with international organizations and stakeholders, including the Coalition of Finance Ministers for Climate Action and COP meetings.

### RSF / Lending (Climate-related delivery)
- At end-FY24, 18 countries with RSF arrangements have been approved, including 13 in FY24 and with another 13 in the pre-program stage.
- Departments estimate FY24 RSF direct delivery costs at $11.2 million, covering incremental RSF-specific work under the UCT program.
- Estimates exceed projection ($7.0 million); departments attribute excess roughly evenly to higher-than-expected number of program requests and higher intensity of pre-program work.
- These totals do not include RST trust administration costs of $5 million (in line with expectations) and overheads.
- Area departments account for 67 percent of the total reported cost, with spending concentrated in AFR (36 percent) and WHD (15 percent).
- Functional department direct operational work concentrated in SPR (13 percent), FAD (12 percent), and MCM (5 percent).

### Digital Money
- Fund-financed spending estimated at $22 million (about 3 percent of total), up $3 million and about $2 million above expectations.
- CD work totaled $14 million, including just under $10 million in externally funded resources.
- Fund-financed spending split: 26 percent by area departments, 58 percent by CD-functional departments (mainly MCM), 13 percent by non-CD functional departments, and 3 percent by a support department (ITD).
- Externally financed spending concentrated in MCM and LEG.
- Focus: growth in surveillance and CD delivery consistent with the Fund’s digital money strategy; work on cross-border payment platforms, macro-implications of crypto assets, digital money, and the international monetary system.

### Macrofinancial Surveillance and Related Financial Work
- Fund-financed spending estimated at $120 million (14 percent of total), up by $10 million relative to FY23 and $29 million above projections.
- Fund-financed spending split: 26 percent by area departments, 67 percent by CD-functional departments (MCM alone accounting for 58 percent of Fund-financed spending), and 7 percent by non-CD functional departments.
- Focus: deepening integration of macrofinancial analysis and policies in bilateral surveillance through engagement ahead of Article IV consultations, toolkit development, training, workshops, calibration of macroprudential policies, and Integrated Policy Framework (IPF) pilots.

### Inclusion and Gender
- Fund-financed spending estimated at $22 million (3 percent of total), up just under $5 million relative to FY23 and $6 million above expectations.
- CD spending totaled $7 million, including $5 million in external funding.
- Fund-financed spending split: 54 percent by area departments, 27 percent by CD-functional departments, and 20 percent by non-CD functional departments.
- Externally financed spending concentrated in FAD, STA, ICD, and SPR.
- Focus: country analysis on the impact of the pandemic, gender, labor market and inequality, social spending; development of analytical toolkits, enhancement of the gender data hub, completion of the guidance note on mainstreaming gender, and advancing work on social spending.

### Fragile and Conflict-affected States (FCS)
- Fund-financed spending on the 39 FCS countries is estimated at $86 million (up 22 percent), up $15 million and $7 million above expectations.
- CD spending was $54 million, including $41 million of externally financed activities.
- Total includes $115 million in direct country work, 42 percent of which is CD.
- Fund-financed spending split: 62 percent by area departments (particularly AFR and MCD), 25 percent by CD-functional departments, and 13 percent by non-CD functional departments (particularly SPR).
- Externally financed spending concentrated in FAD, STA, and MCM.
- Augmentation spending supported increased field presence (additional local staff and LTXs), HQ-based integration of CD and surveillance by country teams, and a strengthened centralized policy function.

### FY24 Augmentation-supported Work (Highlights)
- Climate Change:
  - 13 RSF approvals (target: 10-15).
  - 22 climate deep dives in Article IV reports (target: 15-20).
  - 7 FSAPs (target: 4).
  - Targeted climate-CD including RST country diagnostics, disaster risk financing, green PFM, climate-PIMA, tax and climate policy, climate risk analysis, and climate change statistics.
  - New climate data and tools rolled out (e.g.: Climate Change Dashboard; Portwatch).
- Digital Money:
  - 9 Article IVs and 5 FSAPs covered deep dives on CBDCs, regulation and supervision of fintech and crypto assets.
  - About 25 countries received CD on modernizing payment systems, digital money including CBDC, and fintech including crypto assets.
  - Launched a CBDC Handbook; research on cross-border payment platforms; guidance on crypto asset risk management; early research on tokenization of settlement of assets.
- Macrofinancial Surveillance:
  - Annual assessment showed clear improvement in coverage and quality of macrofinancial analysis relative to FY23.
  - New process to better integrate FSAP findings into bilateral surveillance.
  - Continued development of analytical tools and staff upskilling.
- Inclusion/Gender:
  - Five Article IVs had a deep dive on gender issues, 30 included a light touch; 44 bilateral consultations covered inequality and social issues.
  - More than 20 gender-related CD missions, training, and workshops delivered.
- Fragile and Conflict-Affected States:
  - 9 Country Strategy Engagements (CES) completed and shared with the Board.
  - Two years into strategy implementation, over 50 percent of FCS have a CES informing IMF engagement.
  - Nine new Fund arrangements and emergency financing for three members were approved in 2023 with total commitment of US$17.8 billion.
  - As part of CD scale-up in FCS, 17 LTX placed in RTACs in FY24 (in addition to 12 in FY23).
- Corporate Departments:
  - Support departments and COM received $4 million in FY24 to strengthen recruitment, corporate services, information technology, and communications.

### Departmental Spending and Focus
- Growth in activity in FY24 supported by augmentation and increases in external funding, and higher utilization in some departments; highest growth in STA, SPR, ICD, and MCM.
- Area Departments’ spending rose 2 percent relative to FY23; administrative spending increase mainly reflects additional augmentation resources.
- Departmental roles: Area Departments lead on direct country and regional engagement; functional departments provide specialist participation, review, CD leadership, and policy/analysis; support departments address institutional and corporate functions.

*Source: Departmental estimates, FY2024 — BUDGET OUTTURN (figures and text as provided).*

### 20. Functional non-CD Departments’ spending increased by 5 percent year-on-year, reflecting

### 20. Functional non-CD Departments’ spending increased by 5 percent year-on-year, reflecting

### Functional and CD Departments spending
- Functional non-CD Departments’ spending increased by 5 percent year-on-year, reflecting:
  - intensive policy review work,
  - efforts to strengthen Fund’s finances and governance,
  - analytical work and tool development underpinning country support,
  - increased lending operations.
- Increase in administrative spending mainly reflects augmentation-supported budget increases as well as higher utilization of available budgets.
- Functional CD Departments increased spending by 5 percent in FY24, driven by:
  - sustained support to area departments to address more complex surveillance country cases,
  - analytical work,
  - high demand for CD support in traditional and new emerging areas.
- External CD spending also grew. The increase in administrative spending reflects both augmentation and increased utilization of externally funded budgets.
- Support Departments: Administrative spending rose 1 percent, reflecting higher execution in HR, risk/control functions, and IT budgets, including targeted initial investments ($2.5 million) on building machine learning and Generative AI capabilities.
- Other: Spending in small offices increased from FY23, aligned with additional resources provided to the Fund’s dispute resolution system offices and risk functions. Executive Board and Independent Evaluation Office spending was broadly aligned to FY23.

### Overview of FY24 budget utilization and drivers
- High budget utilization in FY24 occurred notwithstanding a 2 percent budget augmentation, reflecting:
  - historically low staff vacancy rates,
  - continued recovery of travel and in-person engagements,
  - sustained high prices for some inputs.
- For Fund-Financed spending, Table 2 (Millions of FY24 U.S. dollars):
  - Total Gross: Structural Budget 1,455; Outturn 1,450; Utilization (percent) 99.6
  - Personnel: Structural Budget 1,118; Outturn 1,137; Utilization (percent) 101.7
  - Travel: Structural Budget 93; Outturn 90; Utilization (percent) 96.5
  - Buildings/IT/Other: Structural Budget 227; Outturn 224; Utilization (percent) 98.5
  - Contingency: Structural Budget 170; Outturn -
  - Receipts: Structural Budget -44; Outturn -40; Utilization (percent) 89.6
  - Total Net: Structural Budget 1,411; Outturn 1,410; Utilization (percent) 100.0
  - Memorandum items:
    - Gross budget envelope utilization: Structural Budget 1,551; Outturn 1,450; Utilization 93.5
    - General (excl. OED/IEO): Structural Budget 1,316; Outturn 1,325; Utilization 100.6
    - Capital Budget: Structural Budget 108; Outturn 110; Utilization 102.0
- Receipts were lower than budgeted and personnel spending was higher than budgeted, partly reflecting use of contractual positions where vendors were originally planned. Mitigating factors included lower-than-budgeted travel, field and printing/subscriptions costs. For external resources, lower-than-projected personnel spending partially offset higher travel spending.

### Personnel
- Staff accounted for 68 percent of gross Fund-financed expenditures; non-staff personnel (excluding vendors) accounted for another 9 percent, for a total of $1.1 billion or 78 percent of total gross Fund-financed expenditures.
- Total including externally funded personnel was $1.29 billion and 77 percent of total gross expenditures.
- Total staff rose by 2.7 percent (79 staff) in FY24 and 11.4 percent (313 staff) since FY20.
- FY23/24 changes reflect augmentation-funded increases in structural positions, increased externally funded positions, partly offset by concurrent reduction in temporary crisis positions.
- End-FY24 Fund-wide vacancy rate (based on both structural and temporary positions) was 1.5 percent (45 vacancies) versus 0.5 percent (14 vacancies) in FY23.
- Number of Fund-financed long-term contractuals and experts increased by 8 percent, or 4 percent including externally funded personnel in FY24, with a total increase of 46 percent and 33 percent, respectively, since FY20.
- FY24 adjusted budget deflator: 6.2 percent, set based on average U.S. inflation during calendar year 2022 under an updated methodology linking the deflator to actual price movement with a one-year lag.

### Travel
- Fund-financed travel budget execution reached 96.5 percent.
- In-person missions rose to 5,152 in FY24, with a marked increase for functional CD departments.
- FY24 regional in-person missions exceeded pre-pandemic levels, except for EUR.
- Business travel (excluding HR- and seminar-related travel) rose to $56 million in FY24, compared to $46 million in FY23 and $47 million pre-crisis (FY20) in FY24 dollars.
- Average mission size in FY24: 2.1 persons (pre-crisis FY20: 1.7 persons).
- Mission size distribution (FY24, Percent):
  - 1-2 Persons, 82
  - 3-5 Persons, 13
  - 6-10 Persons, 4
  - >10 Persons, 1

### Buildings, IT, and other services
- Administrative budget execution on buildings, IT, and other services was 98.5 percent, similar to FY23 (98.7 percent).
- Utilization affected by reprioritization of IT vendor resources to increase contractual spending; lower than estimated spending on printing, utilities, and lease payments in the field; and increased externally financed cost recovery.
- Underspend partly offset by higher-than-budgeted spending on cybersecurity, IT purchases, the Giving Program, commercial data, cloud support, consulting services, and other departmental sundries.

### Security-related administrative spending
- Fund-wide security spending increased marginally (by $0.6 million) relative to FY23.
- Decrease in HQ security attributed to phasing out of Covid-19 related expenses.
- Field security and business continuity spending remained stable.
- IT security saw an increase ($2.5 million) to strengthen protection against cyber risks.

### Receipts
- Receipts totaled $259 million, up 6 percent in FY24, but still 12 percent below budget.
- Externally funded receipts rose 5 percent with greater utilization of donor funds, remaining 13 percent below budget.
- General receipts rose 14 percent ($4.7 million), reflecting higher CD-related trust fund management fees and coming online of RST trust administration fees.
- Table 4 (selected items, Millions of FY24 U.S dollars):
  - Total (FY24 Outturn): 258.7 (Structural Budget 273.9; FY23 Outturn 295.0)
  - Externally financed CD (direct cost) FY24 Outturn: 218.8
  - General receipts FY24 Outturn: 39.8
  - Trust fund fees FY24 Outturn: 15.3
  - SRP Administration FY24 Outturn: 6.4
  - RST Trust Administration FY24 Outturn: 5.1

### Capital spending — Overview
- Growth in capital spending in FY24: about 16 percent, driven by recovery in facilities spending (about 2/3 of total growth) and ramp-up in IT-intensive cloud-related licenses.
- Total capital funds appropriated between FY22-24 available in FY24: $153.1 million, split between facilities ($74.6 million) and IT-intensive capital funding ($78.5 million), including Cloud Capital Equivalent licenses ($20.3 million).
- FY24 spending totaled $110.5 million:
  - $49.4 million in facilities,
  - $61.1 million in IT-intensive projects, including $41.7 million in direct spending and $19.4 million in cloud-related licenses.
- Given three-year funding availability, $41.7 million will carry over to FY25.

### Facilities capital (FY24)
- FY24 spending: $49.4 million, increased by $11.4 million (up 22 percent on a real basis) compared to FY23.
- Utilization of available funds: 66 percent (vs. 43 percent in FY23).
- Spending drivers: space reconfiguration to accommodate staff growth; opening, expansion, and relocation of field offices; audio-visual enhancements; replacement of critical building systems.
- Unspent funds to carry over into FY25: $25.1 million.
- New Investments ($28.3 million):
  - HQ workplace redesign and office reconfiguration: $19.7 million — increases HQ workstations by 9 percent, with 350 new offices and 100 new touchdown spaces; about 50 percent of related projects completed in FY24.
  - Field expansion, relocation, and improvements: $8.1 million.
  - Sustainability/efficiency initiatives: $0.4 million.
- Lifecycle replacements ($21.1 million) included:
  - multiyear projects to replace critical HQ1 building systems reaching end-life ($4.8 million),
  - AV systems and supporting facilities infrastructure ($6.0 million),
  - mechanical, electrical, plumbing, and maintenance ($1.6 million),
  - sidewalk and exterior lighting replacements ($1.4 million),
  - accessibility improvements ($1.1 million),
  - purchase of replacement vehicles for field offices ($1.1 million),
  - smaller projects to repair or replace HQ building furniture, fixtures and equipment.

- Table 5 (Nominal Capital Expenditures, FY23-24, Millions of U.S. dollars):
  - Total Capital: FY23 Outturn 95.2; Approved Funds Available 108.2; FY24 Outturn 110.5; Carryover to FY25 41.7
  - Facilities: FY23 Outturn 38.0; Approved Funds Available 47.4; FY24 Outturn 49.4; Carryover to FY25 25.1
  - New Investments (Facilities): FY24 Outturn 28.3; Carryover to FY25 8.5
  - Lifecycle replac. & repairs (Facilities): FY24 Outturn 21.1; Carryover to FY25 16.7
  - IT-Intensive (Direct + Cloud): FY23 Outturn 57.2; Approved Funds Available 60.8; FY24 Outturn 61.1; Carryover to FY25 16.5
  - Direct Capital Investments (IT): FY24 Outturn 41.7; Carryover to FY25 16.5
  - Transformation (IT): FY24 Outturn 18.6; Carryover to FY25 8.9
  - Cloud Capital Equivalent: Approved 12.7; Funds Available 20.3; FY24 Outturn 19.4; Carryover 0.9

### IT-intensive capital (FY24)
- FY24 spending: $61.1 million, in line with FY23 levels in real terms.
- Utilization of available resources: 77.8 percent (74 percent in FY23).
- Cloud spend rose 44 percent from last year on a real basis.
- Key expenditures: modernization projects, upgrades to the core banking system, the new procurement system, cybersecurity and hybrid needs.
- Unspent IT-intensive funds to carry over into FY25: $16.5 million.
- Transformation projects (about 30 percent — $18.6 million of direct IT-intensive spending):
  - HR Modernization: $2.6 million in FY24. Final phase of the CCBR reforms completed; automation of daily manual dual data entry and synchronization between the two core HCM systems advanced; completion expected in FY25.
  - iData: $9.3 million in FY24. Development completed and a soft launch of core data sets took place at the start of FY25. Full implementation expected in FY25.
  - Nexus: $4.5 million in FY24. Nexus released Fund wide in the Spring; additional late FY24/early FY25 work to review and update document access rights; expected to close in FY25 following a period of hyper care.
  - iDW-related projects: $2.2 million in FY24.
  - Common Review System: $1.1 million in FY24; completed business requirements for two pilot releases; pilots scheduled to be completed by Q3 FY25; full project completion scheduled for end-FY26.
  - Intranet update project: $1.2 million in FY24; design and scoping completed in FY24 with implementation in FY25 and FY26.
- Other IT investments and lifecycle replacements ($14 million in FY24, including $2.5 million in cybersecurity):
  - Upgrades to Procurement, Risk, and Integrated Supplier Management (PRISM);
  - Integrated Macroeconomic Forecasting Environment;
  - Core Banking system (iFin);
  - Technology Management Automation;
  - Cybersecurity projects such as Proactive Crown Jewels (CJ) Protection, Metrics Automation, and Identity and Access Management.
  - Lifecycle replacements spending: $9 million, supporting PC refresh, servers, and network infrastructure upgrades.
- Cloud Capital Equivalent (CCE): Cloud license spending in FY24 totaled $19.4 million ($12.7 million in FY23), versus $20.3 million budgeted.

### Annex I — Technical Annex (selected points)
- Budget process begins with Managing Director’s Global Policy Agenda and IMFC Communiqué; budget translates priorities into allocations across outputs, issue areas, departments, and inputs.
- Financial Year (t): May 1(t-1) to April 30(t). E.g., FY24 = May 1, 2023 to April 30, 2024.
- Gross Administrative Envelope defined as Net Administrative budget (structural spending that is Fund-financed) plus Receipts (general receipts + donor funding) plus Carryforward (Fund-financed and donor financed) and other transitional transfers.
- Carryforward (CF) limits:
  - General CF limit history: rose to 6 percent after GFC, reverted to 3 percent in FY12; Board approved increase to 5 percent in 2020, then to 8 percent in 2021; reduced to 7 percent in FY23 and 6 percent in FY24, and 5 percent in FY25, aiming to revert to 3 percent over time.
  - IEO CF limit varied between 5 and 8 percent of the IEO net administrative budget since FY21.
  - OED CF limit set at a maximum of 20 percent of the net administrative budget for each office or the dollar equivalent of two Advisor FTE positions; OED central carryforward discontinued effective FY21; CF limit will increase from 20 percent to 30 percent for resources from FY25 to FY26, to be reviewed in FY27 budget cycle.
- Carryforward formula for the general budget:
  - CFt = min (Ut, Bt x Xt)
  - Where Ut = underspend in current FY (Bt + CFt-1 – Et); Bt = general net administrative budget in current FY; CFt-1 = carryforward from previous FY; Et = net expenditures in current FY; Xt = limit expressed as a percentage of the current year’s general net administrative budget (approved by the Executive Board).

*International Monetary Fund — FY2024—Budget Outturn (excerpts)*

### 5. Deflator: Since FY21

### 5. Deflator: Since FY21

### Deflator methodology and FY24 update
- Since FY21, the Fund deflator has been based on U.S. CPI data underlying the January WEO update.
- The deflator methodology was updated beginning in FY24 to reflect actual average US CPI in the preceding CY with a one-time transitional adjustment in FY24.
- Consistent with this methodology, the nominal increase in the budget reflects average CY23 US CPI growth (4.1 percent).

### Capital budget: scope and availability
- Purpose: Financing for investments in IT and building improvements and repairs.
- Availability: Capital budgets are available for three years, after which unspent appropriations lapse.
- Project coverage: Acquisition of building or IT equipment; construction, major renovation, or repairs; major IT software development or infrastructure projects.

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

*International Monetary Fund — FY2024—BUDGET OUTTURN (Annex text excerpt)*

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_Source: https://www.imf.org/-/media/files/publications/pp/2024/english/ppea2024040.pdf_