## ppea2026015 - EXECUTIVE SUMMARY

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### Strategic context and FY27–29 budget summary
- Global environment characterized by "profound transformation and heightened uncertainty, including that stemming from the war in the Middle East."
- Demand for Fund engagement expected to remain strong, requiring difficult trade-offs within a real flat budget.
- FY27-29 budget emphasizes "discipline, focus, and agility" and is guided by the Fund’s medium-term strategic directions set out in the Spring 2025 GPA and updated in the Fall 2025 GPA; the forthcoming Spring 2026 GPA will further inform prioritization.
- Fund-wide streamlining is reinforcing department-level prioritization to create space for highest priority needs, relieve staff work pressures, and maintain capacity for unforeseen demands.

### FY27 net administrative budget (NAB) and budget envelope
- NAB total: 1,559.2 million in FY26 dollars.
- NAB excluding special provisions for overseas annual meetings in Thailand: 1551.7 million.
- Gross budget total: 1,982.5 million in FY26 dollars, down 8.2 million from FY26 (attributed to drop in carryforward, partially offset by special provisions for overseas annual meetings).
- General funding for departments (NAB plus temporary resourcing, excluding OED/IEO) will decline by 8.6 million in FY27 to 1,502.1 million in real terms (not including special provisions for overseas annual meetings).
- Temporary carryforward limit returns to 3 percent, closing out exceptional pandemic-related temporary funding.

### Allocation priorities and operational emphasis
- Continued rebalancing toward funding for direct country support.
- FY27 expected to see increased work related to trade/global imbalances and debt.
- Within the real-flat NAB, higher operational needs to be met through:
  - intra- and inter-departmental reallocations and overtime;
  - central savings (e.g., travel and events);
  - drawdown of buffers.
- Departments prioritizing member-facing activities and focusing on activities within the Fund’s mandate, with close cooperation with partners.

### External funding and capacity development (CD)
- Externally funded budget (mainly supporting capacity building) will remain stable in real terms at FY26 levels.
- Gross externally financed receipts noted as 288.0 (millions of FY26 U.S. dollars) in Table 1 context.
- Externally financed CD (direct cost) table entries: 231.5 (FY25) / 288.0 (FY26 projection) / 249.2 (FY27 proposed) (Millions of FY26 U.S. dollars).
- Funding source key statistics:
  - Ratio of overall projected FY26 spending financed by the Fund versus externally is "57/4 3."
  - Direct costs ratio projected at "39/61."
  - Externally financed CD projected at "$249 million" and Fund-financed direct spending at "$160 million."
  - Direct spending expected to reach "$406 million (70 percent of total CD spending)."
  - Delivery represents "54 percent of total CD," with about "71 percent" of delivery externally funded.
  - Personnel costs remained the largest component of direct CD (about "¾ of the total").

### Capital budget and technology investments
- Proposed FY27 capital budget is below the level proposed for FY27 in the FY26-28 Medium-term Budget, refocusing facilities portfolio on essential lifecycle and maintenance projects in HQ and field offices.
- Funding for IT-intensive investments remains at last year’s level in real terms to support:
  - implementation of the Fund’s Business Technology Strategy;
  - expanding cybersecurity capabilities;
  - scaling AI across core business;
  - reducing technical debt.
- Capital envelope entries (selected):
  - Capital envelope shown as 132.5 (Millions of FY26 U.S. dollars) in Table 1 context for FY26, with FY27 capital noted as 131.0 in the same table.
  - Table 12 selected figures (Millions of FY26 U.S. dollars): FY25 Spending Total Capital 131.0; FY26 Est Total Capital 131.0; FY27 Prop Total Capital 126.0.
  - FY27 Prop: Facilities 55.3; IT-Intensive 70.7 (Millions of FY26 U.S. dollars).
- IT-Intensive highlights:
  - IT-Intensive totals across years: 70.9 72.6 70.7 72.6 71.0; 74.6 71.3 76.6 (table entries preserved).
  - Cloud Capital Equivalent and CCE pressures noted; Cloud costs projected to increase in FY27 to 26.7 million.

### Income, sustainability, and precautionary balances
- Based on FIN’s income projections, the FY27–29 budget is consistent with a projected surplus in the medium-term income position and precautionary balances above the medium-term target of SDR 25 billion ($34 billion).
- Projected operational income remains above spending throughout the projection period.
- Forthcoming Report on the Fund’s Income Position for FY26/FY27 will provide underlying assumptions.

### Risks, mitigation, and specific implications of the war in the Middle East (Box 1)
- Identified budget-related risks:
  - potential for further increases in demand for Fund services;
  - resurgence of broad-based work pressures;
  - pricing pressures for some inputs and services;
  - uncertainty related to donor funding;
  - technology and process-related vulnerabilities.
- Risks captured within the enterprise risk framework, with mitigation incorporated in allocations and residual risks monitored on an ongoing basis.
- Box 1 — Immediate operational impacts of the war in the Middle East:
  - travel to some countries temporarily suspended;
  - CSF Security and relevant department teams engaged in staff support, including evacuations of staff, long-term experts, and dependents.
- Operational areas affected:
  - Surveillance and lending: potential for considerable increase in intensive surveillance and higher demand for financial support; higher reliance on virtual or third-country locations.
  - Capacity Development (CD): potential short-term decrease in in-person CD with possible medium-term rebound; departments adapting modalities and reallocating CD activities geographically after consultation with area departments.
  - Corporate functions: unanticipated pressures on inter-departmental coordination, Board engagement, Management support, communications, Spring Meetings preparations, and cybersecurity monitoring.
- Resource impact: immediate crisis response has intensified work affecting near-term overtime; most departments maintained FY26 spending projections and FY27 plans given uncertainty.

### Streamlining, reprioritization, and Accountability Framework (Box 2 / Box 3)
- Streamlining and reprioritization sustain a roughly flat overall budget envelope over two decades through continuous measures.
- Departments have provided savings/reprioritization on the order of 4-5 percent of their structural budgets in recent years.
- FY27 gross departmental savings (from temporary and structural resourcing): about 84 million (5.4 percent of NAB resources).
- Devolution of Office of Transformation Management functions to four other departments allowed for 2.4 million in structural savings.
- Gross and net reallocations:
  - Some 76 million (4.9 percent of the NAB) in gross savings will be reallocated to new activities within and across departments; remaining 7.6 million will drive a net reduction in temporary funding.
  - Departments estimate a net decline in cross-cutting activities by some 4 million, with a drop in macro-structural issue areas by a net 3.4 million (largely from a decline in climate and gender work from peak buildout levels).
- First-wave management-led streamlining measures (summer 2025) and reported gross impact by departments for FY26-27 from first-wave streamlining: 57 million.
- Aggregate decline in overtime from FY25 to FY26 year-to-date: about 3/4 of a percentage point; overall overtime down some 3.6 percentage points from its peak during the crisis.
- OIA to support monitoring of implementation by this summer; Board to be updated in their regular activity report.

### FY26 achievements and operational outputs (Box 4; Box 5; Box 6)
- Country Operations FY26 key achievements:
  - Financing approved to 15 countries (5 LICs)
  - 5 RSF operations approved, 4 in train
  - 99 Article IV consultations, 6 FSAPs concluded
  - 174 countries/territories received CD
- Sustained Financial Support (Box 5) highlights:
  - Financing commitment totaled 134 billion, of which 89 billion is associated with disbursing UCT-arrangements.
  - New arrangements: Fifteen arrangements were approved in FY26 through March 6, with 5 including an RSF component.
  - Active requests could result in 14 additional UCT programs (4 with RSF component) and one emergency assistance operation in the remainder of FY26; these requests imply an additional 15 billion in funding.
  - Enquiries: 7 enquiries with a high likelihood of translating into requests in FY27 (all potential UCT operations).
- Fragile and Conflict-Affected States (FCS) spending (Box 6):
  - Fund-financed spending related to 38 FCS countries in FY26 is expected to increase about 5 percent relative to FY25, mainly reflecting higher spending in Syria and Niger.
  - CD spending represented about 40 percent of total FCS spending, concentrated in delivery departments.
  - CD spending was largely directed to FCS countries in AFR (near 60 percent of total) with most of the remainder allocated to MCD and EUR.
  - Executive Board will receive an update of the implementation of the FCS Strategy by Summer 2026.

### Multilateral surveillance, policy, analytic, governance, and Fund-finance spending
- Multilateral Surveillance and Global Cooperation spending projected to increase in FY26, driven by trade, global imbalances and financial market developments; FY27 budgets will decline but remain above pre-pandemic levels.
- Policy spending projected to decline in FY26 after earlier increases; FY27 budgets will also decline.
- Analytic spending projected to decline in FY26 and slightly in FY27.
- Fund Governance spending projected to increase in FY26; for FY27, IEO structural budget flat and OED structural budget proposed to decline.
- Fund Finance spending projected to decline marginally in FY26; FY27 budgets will also decline slightly.

### Personnel, travel, buildings, and receipts
- Personnel:
  - Personnel costs make up 78 percent of gross expenditure.
  - Salary-deflator reserve as of FY26: about 15 million (1 percent of the NAB).
  - Staffing rose from FY20-26 by about 390 positions (13 percent), including a 38 percent increase in externally funded positions to 126 FTEs.
  - Economists make up about 58 percent of staff positions.
  - FY27 personnel budgets will decline in real terms, reflecting fewer staff relative to non-staff personnel.
- Travel:
  - Overall travel budget utilization for FY26 projected at 85.1 percent (83.8 percent for Fund‑financed travel) based on developments through end February.
  - Fund-financed business travel utilization projected at 84.9 percent based on developments through end-February.
  - Related airfare costs declined during 2025 but remain 33 percent above pre-crisis levels (1 percent in real terms).
  - Per-diem costs have declined 1 percent relative to pre-crisis levels (25 percent lower in real terms).
  - FY27 travel budget programmed to slightly increase in real terms excluding overseas Annual Meetings.
- Buildings and IT:
  - FY27 proposed capital envelope is below preliminary FY26-28 MTB and 5 percent below FY26, mainly due to reduction in non-essential facilities-related projects.
  - Projected FY26 carryforward noted 21.2M for facilities and 11.0M for IT-Intensive Capital.
  - FY27 proposed facilities budget supports HQ2 pre-construction and lifecycle needs; HQ2 construction expected to start in the Spring of 2027.
- Receipts (selected figures, Millions of FY26 U.S. dollars):
  - Total receipts (FY25 outturn / FY26 projection / FY27 proposed budget): 273.9 / 337.0 / 292.6.
  - Externally financed CD (direct cost): 231.5 / 288.0 / 249.2.
  - General receipts: 42.4 / 49.0 / 43.4.
  - Trust Fund Fees: 16.2 / 17.6 / 17.5.
  - SRP Administration: 6.7 / 10.7 / 5.9.
  - PRGT Investment Fee: 0.0 / 2.4 / 2.4.
  - RST Trust Administration: 5.5 / 5.5 / 5.5.
  - Concordia: 3.6 / 3.3 / 2.8.
  - HQ2 lease: 1.4 / 1.5 / 1.1.
- FY27 overall receipts projected to decline slightly in real terms, primarily due to a slight reduction in general receipts related to HQ2 lease decline and adjustments to staff positions linked to RST and PRGT.

### Departmental allocations, FTEs, and FY27 proposed changes
- Departmental shares in proposed administrative budget by department, FY27 (percent of total) — selected:
  - AFR: 8; APD: 4; EUR: 6; MCD: 5; WHD: 4; FAD: 5; MCM: 7; STA: 4; ITD: 9; CSF: 8; OED/IEO: 8.
- FY27 gross departmental savings and reallocations:
  - FY27 gross departmental savings (from temporary and structural resourcing): about 84 million (5.4 percent of NAB resources).
  - Gross savings to be reallocated to new activities: 76 million (4.9 percent of the NAB).
  - Remaining driving net reduction in temporary funding: 7.6 million.
- FTE highlights:
  - Selected totals in Table 9 preserved as printed: e.g., 2,934.5 47.5 2,982.0 2,935.7 32.0 2,967.7 -0.5 11.2 (table entries as presented).
  - Grand Total (Proposed): 1,637.3; FTE 3,263.7; Fund-financed 1,615.1; FTE 3,387.7 (table entries as presented).
- Departmental narrative highlights (selected):
  - Area departments: structural staffing will increase in all area departments, offsetting unwinding of temporary resources; AFR and WHD increases linked to complexity in operations and lending.
  - Non-CD functional departments: structural resources remain unchanged; overall resources decline slightly due to temporary unwinding.
  - CD functional departments: structural resources will decline; temporary resources broadly flat.
  - Support departments: structural resources will increase; overall resources roughly flat with unwinding of temporary resources.
  - ITD increase driven by cybersecurity top-up approved last year, partially offset by unwinding temporary resources.

### Cybersecurity and AI (Box 9)
- Cybersecurity:
  - Cybersecurity Strategy focused on proactive defense, operational resilience, cross-functional accountability.
  - Enterprise Risk Self-Assessment for FY27-29 maintains cybersecurity and data privacy risk to the budget as a moderate risk.
  - Mitigation: “Maintain strong implementation of the comprehensive cyber security strategy set out in ITD’s Business Technology Strategy (BTS) within the planned funding aimed at bringing the Fund’s cybersecurity maturity to higher level.”
- AI:
  - AI strategy organized around 6 workstreams: collecting and prioritizing demand; developing AI skills; optimizing data; building ecosystem of AI tools and standards; researching/experimenting; providing AI risk management framework.
  - AI tools scaled/deployed include: Microsoft Copilot 365, SPR Guidance Note Bot, SAMMY, AIDA 1.5, Talk2Manuals, FRIDA, an AI Lab.
  - Next phase: adopt an AI value calculator; scale AI across core functions aligned to AI Ambition; further upskill workforce.
  - HRD developing an AI People Strategy to balance long-term transformation with near-term AI enablement in HR operations.
- Budget risks and implications:
  - Cyber security/data privacy (Moderate).
  - Capital and modernization (Moderate) including need to address rapidly changing IT landscape (including AI).
- Next steps:
  - Continue governance oversight through Cyber Steering Committee and CBIT with regular Board updates.
  - Implement remaining items from the AI Maturity Assessment and scale AI deployments.
  - Adopt and operationalize AI risk management mechanisms.

### Budget risks and monitoring, and medium-term planning
- Risks captured within the enterprise risk framework with specified mitigation incorporated in allocations and residual risks monitored on an ongoing basis.
- Medium-term strategy and resource allocation:
  - CSR, FSAP Review, and Review of Conditionality identified as key reviews to be completed in FY27, with outcomes mainly informing the FY28–FY30 budget cycle; any early implementation in FY27 to draw on existing budget flexibility.
  - Winter AF exercise and AF/budget process monitor consistency between strategic priorities and budget allocations.
  - Strengthened budget data framework and costing practices to inform resource allocation decisions and enhance transparency.

### Budget execution and carryforward
- Departments expected to remain within their working budgets in FY26, both in FTEs and dollars.
- FY26 Projected Spending is above the FY26 appropriation but within the available resource base including remaining appropriated funds beginning in FY24.
- Approximately 34 million currently projected to carry over to FY27.
- Projected FY26 carryforward: 21.2M for facilities and 11.0M for IT-Intensive Capital.

*Prepared by an Office of Budget and Planning (OBP) team led by Maria Albino under the supervision of Laurence Allain with contributions from listed staff, HRD, and FIN. March 31, 2026.*

### EXECUTIVE SUMMARY

### ppea2026015 - EXECUTIVE SUMMARY

### Strategic context and FY27-29 budget summary
- Global environment characterized by "profound transformation and heightened uncertainty, including that stemming from the war in the Middle East."
- Demand for Fund engagement expected to remain strong, requiring difficult trade-offs within a real flat budget.
- FY27-29 budget emphasizes "discipline, focus, and agility" and is guided by the Fund’s medium-term strategic directions set out in the Spring 2025 GPA and updated in the Fall 2025 GPA; the forthcoming Spring 2026 GPA will further inform prioritization.
- Streamlining exercise: Fund-wide streamlining is reinforcing department-level prioritization to create space for highest priority needs, relieve staff work pressures, and maintain capacity for unforeseen demands.

### FY27 net administrative budget (NAB) and budget envelope
- NAB total: $1,559.2 million in FY26 dollars.
- NAB excluding special provisions for overseas annual meetings in Thailand: $1551.7 million.
- Gross budget total: $1,982.5 million in FY26 dollars, down $8.2 million from FY26 (attributed to drop in carryforward, partially offset by special provisions for overseas annual meetings).
- General funding for departments (NAB plus temporary resourcing, excluding OED/IEO) will decline by $8.6 million in FY27 to $1,502.1 million in real terms (not including special provisions for overseas annual meetings).
- Temporary carryforward limit returns to 3 percent (historic norm), closing out exceptional pandemic-related temporary funding.

### Allocation priorities and operational emphasis
- Continued rebalancing toward funding for direct country support.
- FY27 expected to see increased work related to trade/global imbalances and debt.
- Within the real-flat NAB, potentially higher operational needs to be met through:
  - intra- and inter-departmental reallocations and overtime;
  - central savings (e.g., travel and events);
  - drawdown of buffers.
- Departments are prioritizing member-facing activities and focusing on activities within the Fund’s mandate, with close cooperation with partners.

### External funding and capacity development
- Externally funded budget (mainly supporting capacity building) will remain stable in real terms at FY26 levels.
- Gross externally financed receipts noted as $288.0 (millions of FY26 U.S. dollars) in Table 1 context.

### Capital budget and technology investments
- Proposed FY27 capital budget is below the level proposed for FY27 in the FY26-28 Medium-term Budget, with refocusing of facilities portfolio on essential lifecycle and maintenance projects in HQ and field offices.
- Funding for IT-intensive investments remains at last year’s level in real terms to support:
  - implementation of the Fund’s Business Technology Strategy;
  - expanding cybersecurity capabilities;
  - scaling AI across core business;
  - reducing technical debt.
- Capital envelope shown as 132.5 (Millions of FY26 U.S. dollars) in Table 1 context for FY26, with FY27 capital noted as 131.0 in the same table.

### Income, sustainability, and precautionary balances
- Based on FIN’s income projections, the FY27–29 budget is consistent with a projected surplus in the medium-term income position and precautionary balances above the medium-term target of SDR 25 billion ($34 billion).
- Projected operational income remains above spending throughout the projection period.
- The forthcoming Report on the Fund’s Income Position for FY26/FY27 will provide underlying assumptions.

### Risks and mitigation
- Identified budget-related risks:
  - potential for further increases in demand for Fund services;
  - resurgence of broad-based work pressures;
  - pricing pressures for some inputs and services;
  - uncertainty related to donor funding;
  - technology and process-related vulnerabilities.
- These risks are captured within the enterprise risk framework, with specified mitigation incorporated in allocations and residual risks monitored on an ongoing basis.

### Specific implications of the war in the Middle East (Box 1)
- Immediate operational impacts:
  - travel to some countries temporarily suspended;
  - CSF Security and relevant department teams engaged in staff support, including evacuations of staff, long-term experts, and dependents.
- Operational areas affected:
  - Surveillance and lending: potential for considerable increase in intensive surveillance and higher demand for financial support; higher reliance on virtual or third-country locations.
  - Capacity Development (CD): potential short-term decrease in in-person CD with possible medium-term rebound; departments adapting modalities and reallocating CD activities geographically after consultation with area departments.
  - Corporate functions: unanticipated pressures on inter-departmental coordination, Board engagement, Management support, communications, Spring Meetings preparations, and cybersecurity monitoring.
- Resource impact: immediate crisis response has intensified work affecting near-term overtime; most departments maintained FY26 spending projections and FY27 plans given uncertainty.

### Paper structure and annexes (high-level)
- Section I: medium-term context and FY27 budget proposal.
- Section II: FY26 projected outturn and FY27 proposed budget details by output, input area, and department.
- Section III: preliminary FY27 capital budget proposal.
- Section IV: budget risks and mitigation.
- Section V: FY27 proposed decisions.
- Annexes: definitions, background, time-series data, and resource implications of policy reviews.

*Prepared by an Office of Budget and Planning (OBP) team led by Maria Albino under the supervision of Laurence Allain with contributions from listed staff, HRD, and FIN. March 31, 2026.*

### Box 2. Medium-Term Strategy and Resource Allocation

### Box 2. Medium-Term Strategy and Resource Allocation

### Strategy and Resourcing
- The Fund’s agility—mobilizing resources rapidly in crises to meet changing needs—builds on iterative, mutually reinforcing strategic practices to prioritize and support nimble budget and organizational structures.
- Strategic direction:
  - The Fund’s budget takes as its starting point the strategic priorities set out by the IMFC and in the GPA, and as reflected in issue-specific strategy/policy and risk reviews.
  - Priorities feed into the Board Work Program and cascade to departmental planning in management-led Accountability Framework (AF) discussions twice a year.
  - Implementation plans consider risks and available resources, requiring difficult trade-offs.
- GPA (2025 Spring and Fall): laid out medium-term directions anchored in five pillars: sharpening focus of surveillance, fortifying lending toolkits, addressing debt challenges, enhancing CD, and maintaining a strong, agile institution.
- Key Reviews (timing and focus):
  - Annex II lists reviews in FY26; Key reviews to be completed in FY27 include:
    - The Comprehensive Surveillance Review (CSR): a key pillar in prioritizing Fund engagement. Emerging directions include: a) policy advice to support resilience and growth; b) enhanced risk management advice, including risks to baseline advice anchored in multilaterally consistent risk scenarios; and c) analysis of external imbalances and spillovers.
    - The FSAP Review: will consider how to deepen macro-financial analysis, including by reviewing methodology for designating mandatory assessments and examining the traction of the program.
    - The Review of Conditionality: will center on ensuring that the design of Fund programs is fit-for-purpose in an evolving global economic context to better support external viability and resilience.
  - The reviews will include a discussion of the resource implications of key recommendations. Given the timeline for their completion, their outcome will mainly inform the FY28-FY30 budget cycle, with any early implementation in FY27 drawing on existing budget flexibility.
- Agile organizational structure:
  - Fund work supported by collaborative practices across regionally focused area departments and specialized functional departments, along with support and oversight offices.
  - Country and project teams combine staff from across departments with flexibility to adjust team size and composition.
  - Personnel model brings together macroeconomists and specialists.

### Strategic budgeting, Accountability Framework, and data
- Winter AF exercise: focuses on consistency between strategic priorities and budget allocations; centers on departmental objectives, streamlining efforts, risks and resource needs; serves as a key input in budget formulation.
- AF/budget process monitors/reviews activities/resourcing in macro-critical structural areas (Annex IV).
- Work to enhance budget data and reporting builds on strong data foundations (Annex V).

### Streamlining and Reprioritization (Box 3)
- The Fund has operated within a roughly flat overall budget envelope over two decades through continuous streamlining and reprioritization.
- Annual savings/reprioritization:
  - Departments have provided savings/reprioritization on the order of 4-5 percent of their structural budgets in recent years.
  - Significant additional temporary savings were redeployed during the pandemic.
  - FY27 gross departmental savings (from temporary and structural resourcing) total about $84 million (5.4 percent of NAB resources).
  - Devolution of Office of Transformation Management functions to four other departments allowed for $2.4 million in structural savings and reduction in temporary resources.
- Gross and net reallocations:
  - Some $76 million (4.9 percent of the NAB) in gross savings will be reallocated to new activities within and across departments; remaining $7.6 million will drive a net reduction in temporary funding.
  - Departments estimate a net decline in cross-cutting activities by some $4 million, with a drop in macro-structural issue areas by a net $3.4 million (largely from a decline in climate and gender work from peak buildout levels).
  - Direct country work will grow; budgets for specific activities under multilateral surveillance/global cooperation, policy/analytical work, and corporate functions will decline. Work on Fund finances and governance expected to be relatively stable.
- Fund-wide streamlining initiatives in FY16, FY19, FY21 complemented department-specific initiatives.
- Current management-led streamlining initiative:
  - First wave of measures set out in summer 2025: utilize policy flexibility for more focused bilateral surveillance; more selective coverage of macro structural issues; streamlining flagships and REOs moderately; rationalizing internal and external communications; streamlining Annual/Spring Meetings’ events and logistics; increasing efficiency in risk management activities and products where costs are high relative to risk mitigation while staying within the Board’s risk tolerance.
  - Recent departmental survey indicated good progress since summer FY26 in implementation (some initiatives already saw progress in FY25).
  - The gross impact reported by departments for FY26-27 totals $57 million (impact reflected in reduced overtime and broader savings/reprioritization). Survey was conducted prior to the war in the Middle East.
  - About 2/3 of reported impact comes from mainstreaming of work on climate and gender/inclusion as these move toward steady-state levels.
  - Departments estimate about one third of expected impact achieved through first six months of implementation.
  - Aggregate decline in overtime of about 3/4 of a percentage point from FY25 to FY26 year-to-date (through February), based on a rolling 12-month window; overall, overtime is down some 3.6 percentage points from its peak during the crisis.
  - OIA will support monitoring of implementation by this summer; the Board to be updated in their regular activity report.

### FY26 achievements (Box 4) and FY26 developments
- Country Operations (FY26 key achievements):
  - Financing approved to 15 countries (5 LICs)
  - 5 RSF operations approved, 4 in train
  - 99 Article IV consultations, 6 FSAPs concluded
  - 174 countries/territories received CD
- Multilateral Surveillance and Global Cooperation achievements include:
  - 4th financing for Development Conference—IMF Contribution to Agenda
  - Global Financial Safety Net—A stocktaking
  - External Sector and Capital Flows Developments in the Wider membership
  - Developments in Global Trade and Trade Policy and Implementation of the IMF Trade Strategy
  - Global Developments in Payments, Crypto Assets
  - Stablecoins and Capital Flows
  - Macroeconomic Developments and Prospects in LIC
  - G20 work on Aging, Migration, and Productivity; Inclusive Growth; and Data Gap Initiatives
  - Risk and Resilience in the Global Foreign Exchange Market
- Policy/Analytical achievements include launching major institutional reviews (CSR, FSAP Review, ROC) and multiple methodological and sectoral outputs (selected items listed in source).
- Fund Finances achievements include enhanced country risk monitoring, Review of Precautionary Balances, Implement 2024 PRGT Reform (Phase I), and IPAA-related operations.
- Fund Governance achievements include progress on IMF Quota and Governance Reforms since 2000 and related work on the 16th and 17th Quota Reviews.
- Corporate functions achievements include completed mobility round for fungible economists; workforce planning tools enhancements; mental health training; guidance note for operationalizing ERM; implementing Business Technology Strategy; space optimization and facilities improvements; Common Review System.

### FY26 budget utilization and FY27 proposed budget
- FY26 utilization:
  - General utilization of Fund-financed structural budget (excluding OED/IEO) projected to rise versus FY25 and remain just below the structural envelope given projected underspend of travel resource and downward pressures from increases in the salary/deflator reserve.
  - OED/IEO utilization projected to rise versus FY25, but material underspend continues, driven by low use of central OED resources.
  - Externally financed resource utilization projected by departments to increase, albeit with overall utilization still constrained by rigidities in permissible use of resources.
- FY27 proposed budget highlights:
  - The real NAB (excluding provisions for overseas annual meetings) is proposed to remain flat; the general NAB plus temporary resourcing declines slightly in real terms with the final unwinding of carryforward resources.
  - The FY27 deflator will be 2.7 percent, based on actual average U.S. CPI for CY2025, under the methodology established in the FY24-26 Medium-Term Budget, as adjusted (Annex I).
  - Salary/Deflator dynamics imply a net positive impact in FY26 dollars; these resources will be added to the structural salary reserve for use in years with negative differentials. As per CCBR agreements, no space for HR competitiveness measures is created in FY27.
- Salary-Deflator Reserve:
  - Move to a CPI-based Fund-deflator in FY21 delinked prior direct link with salary changes. Personnel costs make up 78 percent of gross expenditure.
  - A salary-deflator reserve was established; as of FY26, this reserve totals about $15 million (1 percent of the NAB).
- Carryforward:
  - FY27 budget finalizes reversion to a 3 percent carryforward limit (versus 4 percent in FY26 and a high of 8 percent in FY22).
- FY27 budget space:
  - Departmental reprioritization (Box 3) forms the bulk of budget space available to fund shifts in activities within and between departments. Temporary space will decline due to the drop in carryforward.

### Selected exact figures and budget items (preserved as in source)
- FY27 gross departmental savings (from temporary and structural resourcing): about $84 million (5.4 percent of NAB resources).
- Devolution structural savings: $2.4 million.
- Gross savings to be reallocated to new activities: $76 million (4.9 percent of the NAB).
- Remaining driving net reduction in temporary funding: $7.6 million.
- Reported gross impact by departments for FY26-27 from first-wave streamlining: $57 million.
- Aggregate decline in overtime from FY25 to FY26 year-to-date: about 3/4 of a percentage point; overall overtime down some 3.6 percentage points from its peak.
- Salary-deflator reserve as of FY26: about $15 million (1 percent of the NAB).
- FY27 deflator: 2.7 percent.
- Selected budget table entries (Table 3, FY26-27):
  - Gross Fund Financed: 1,607.8 (FY26) to 1,685.9 (FY27 Nominal) with listed changes in real terms in source.
  - Net administrative budget: 1,559.2 (FY26) and 1,601.3 (FY27 Nominal) as presented in source.
  - Externally Financed receipts: 288.0 (FY26) and 295.7 (FY27 Nominal) as presented in source.
  - General carryforward (Excl OED/IEO) total: 43.3 (FY26 figures presented in source).
- FY26 achievements (counts and activities):
  - Financing approved to 15 countries (5 LICs)
  - 5 RSF operations approved, 4 in train
  - 99 Article IV consultations, 6 FSAPs concluded
  - 174 countries/territories received CD

*Source: SPR and OBP (content as provided in the IMF PDF).*

### 10.       FY26   Projected Spending (Figure 4b). Most

### 10.       FY26   Projected Spending (Figure 4b). Most

### FY26 spending by output and short-term trend
- Most output areas are expected to see some growth in FY26 relative to FY25, led by direct country support, in particular bilateral surveillance and CD direct delivery (Annex III).
- Growth in bilateral surveillance spending in FY26 is partially mirrored in declines in lending activities, which nonetheless are expected to remain near historic highs (Box 5).
- Projections point to higher growth in direct spending on FCS (Box 6).
- Higher spending across most output areas since the pre-crisis period (FY20) has been supported by the FY25-27 augmentation and high utilization, as well as increased external funding for CD.
- A slight reduction in Fund-financed CD mainly reflects use of resources within FAD and STA.
- The strong growth in bilateral surveillance since the crisis reflects more continuous policy dialogue, increased granularity and expanded coverage of longer-term challenges to growth and resilience.

### Proposed FY27 budget orientation
- Continued shift towards direct country support, mainly for bilateral surveillance and lending, is proposed in FY27 (Figure 4b), with a modest increase also in budgets for both Fund-financed and externally financed CD delivery.
- The shift toward direct country support is also evident over the longer period since FY20.

### Resourcing for bilateral surveillance and lending
- Non-CD country engagement (bilateral surveillance and lending) is led by Area Department teams, supported by functional department experts (with direct team participation and ad-hoc advice and review).
- Spending data are reported separating surveillance and lending outputs, while budgets are presented on a consolidated basis, recognizing the common resource basis.

### Box 5 — Sustained Financial Support (FY08–26 / FY26 developments through March 6, 2026)
- Lending remains at high level in terms of both number and volume of arrangements.
- The war in the Middle East has increased uncertainty and risks for increased financing needs for countries affected directly or through spillovers.
- New arrangements: Fifteen arrangements were approved in FY26 through March 6, with 5 including an RSF component.
- Current arrangements: Programs are characterized by increased complexity, in many cases involving debt issues and RSF operations, contributing to the need for additional time and specialized support.
- Financing commitment totaled $134 billion, of which $89 billion is associated with disbursing UCT-arrangements.
- Active requests could result in 14 additional UCT programs (4 with RSF component) and one emergency assistance operation in the remainder of FY26; these requests imply an additional $15 billion in funding.
- Enquiries: There are also currently 7 enquiries with a high likelihood of translating into requests in FY27. They are all potential UCT operations (none with RSF component).
- The baseline scenario in the Review of the Fund's Income Position for FY26 and FY27–28 (forthcoming) also suggests program activity will remain elevated in FY27.

### Box 6 — Spending in Fragile and Conflict-Affected States (FCS)
- Fund-financed spending related to 38 FCS countries in FY26 is expected to increase about 5 percent relative to FY25, mainly reflecting higher spending in Syria and Niger.
- CD spending represented about 40 percent of total FCS spending, concentrated in delivery departments.
- CD spending was largely directed to FCS countries in AFR (near 60 percent of total) with most of the remainder allocated to MCD and EUR.
- Incremental work in FY26 focused on developing three additional Country Engagement Strategies, integrating macro-critical aspects of fragility and conflict in bilateral surveillance where relevant, and stepping up field-based CD.
- The Executive Board will receive an update of the implementation of the FCS Strategy by Summer 2026.

### Multilateral surveillance, policy, analytic, and governance spending (FY26–FY27)
- Multilateral Surveillance and Global Cooperation spending is projected to increase in FY26, driven by work on trade, global imbalances and financial market developments (with increases mainly in APD, EUR, FAD and MCM).
- In FY27, budgets for multilateral surveillance will decline but remain above pre-pandemic levels, reflecting rebalancing of activity in area departments out of regional outlook work to direct country support and completion of major updates to statistical manuals.
- FY27 multilateral priorities: economic interconnections and spillovers (monetary policy and financial stability), global imbalances and trade, EBA methodology update, risks of tokenization, Surveillance on Systemic Financial Sector Risks, implementation of BPM7 and the 2025 System of National Accounts, advancing data ecosystem on fintech and NBFIs and related data collection.
- Policy spending is projected to decline in FY26 after increases in earlier years, driven by FIN, ICD and SPR; FY27 budgets will also decline, driven by shifts in outputs in SPR and across CD-functional departments.
- Analytic spending is projected to decline in FY26, driven by SPR; FY27 budgets will also decline slightly, driven by shifts in FAD and WHD.
- Analytical priorities include Macro Implications of Structural Transformations in Finance and the role of the Fund; Trade and Industrial Policy including its Spillovers; Trade and Financial Integration; AI and productivity especially in EMDEs; CBDC and Crypto Flows; Stablecoins and capital flows; Financial Stability Implications of Capital Account Imbalances; Implications of Tokenization for the International Monetary System; IMF-WB joint work on digital fraud.
- Fund Finance spending is projected to decline marginally in FY26; FY27 budgets will also decline slightly. Key FY27 activities include AML/CFT Trust Fund renewal and fundraising activities to secure assurances for PRGT.
- Fund Governance spending is projected to increase in FY26, driven by OED, IEO, and FIN. For FY27, IEO structural budget will be flat, while OED’s structural budget is proposed to decline. Work will focus on facilitating the implementation of the 16th general quota review and advancing work on the 17th General Quota Review.

### Corporate functions and OED/IEO
- Corporate functions have declined as a share of overall Fund spending from 27 to 22 percent (28 to 25 percent of Fund-financed spending) over the past 20 years, despite expanded staffing, field presence, and externally funded CD.
- Increases in corporate function budgets and spending since FY20, including in FY26, reflect rebalancing to address legacy underinvestment in technology (including cybersecurity) and business processes, while strengthening risk/control functions, HR and operational policies and practices.
- FY27 corporate function budgets will decline slightly, driven by net reductions in CSF and HRD. Allocations support ERM maturity, cybersecurity strategy and data privacy plan implementation, HR modernization and updated people strategy, strategic workforce planning, HQ2 asset lifecycle replacement oversight, Enterprise Resource Planning strategy development, and continued delivery of technology capabilities and corporate services.
- OED constitutes 69 percent of spending on Fund governance. FY26 budgeted resources for the Executive Board and the IEO are $108 million, of which the OED budget is $100 million. Combined, they represent 7 percent of the NAB.
- For FY27, the preliminary budget assumes IEO structural resources will remain flat and OED will decline in real terms in line with the proposal currently under consideration.

### FY26 spending and FY27 budget by input area — overview
- FY27 resources are projected to decline slightly despite allocation of travel-related resources for the FY27 overseas annual meetings, driven by a lower Fund-financed carryforward.

### Personnel (Box 7) — FY26 developments and FY27 proposal
- Staff utilization is expected to remain broadly flat relative to FY25, reflecting lower vacancies across support departments offset by residual effects of pre-hiring in some economics departments.
- Non-staff personnel utilization remains above the structural budget despite lower spending in real terms, reflecting a reduced budget in FY26.
- By year end, negative vacancy rates in economics departments are expected to ease.
- FY27 personnel budgets will decline in real terms, reflecting fewer staff relative to non-staff personnel. The structural budget will remain broadly stable, with a modest reallocation from non-staff to staff personnel, and the winddown of temporary staff is partially offset by contractual resources.

Box 7 — Personnel developments (selected figures and trends)
- Staffing rose from FY20-26 by about 390 positions (13 percent), including a 38 percent increase in externally funded positions to 126 FTEs, in support of CD work.
- In FY27, budgeted staff are programmed to decline slightly, with an assumption of broadly flat levels in coming years.
- Reported overtime has declined from its 2021 peak, albeit with pockets of still high overtime particularly among senior staff.
- Economists make up about 58 percent of staff positions, with an increase in specialists relative to fungible macroeconomists within CD departments in recent years.
- Ramped up strategic workforce planning will focus on anticipating changes in skills needs, enhancing agility to respond to emerging priorities, and supporting employment decisions.

### Travel (FY26 utilization and FY27 proposal)
- Overall travel budget utilization for FY26 was projected at 85.1 percent (83.8 percent for Fund‑financed travel) based on developments through end February; travel interruptions due to the war in the Middle East will likely drive utilization down further for FY26.
- Utilization remains below pre-pandemic levels (96.1 percent in FY18).
- Fund-financed business travel utilization was projected at 84.9 percent based on developments through end-February, slightly lower than FY25.
- Related airfare costs declined during 2025 but remain 33 percent above pre-crisis levels (1 percent in real terms).
- Per-diem costs have declined 1 percent relative to pre-crisis levels (25 percent lower in real terms) with a significant decline this year.
- Mission volumes are in line with FY25 and remain well below pre-crisis levels, partially reflecting increased remote engagement.
- Externally financed utilization is projected by departments at 86.8 percent this year (relative to 78 percent in FY25 and 101 percent pre-crisis).
- FY27 travel budget is programmed to slightly increase in real terms excluding overseas Annual Meetings, driven by externally financed allocations, recognizing potential for disruptions to mission travel and costs from the war in the Middle East.

### Buildings, IT, and other services (FY26 developments and FY27 proposal)
- Fund-financed spending in these areas has risen slightly versus last year.
- Increased spending in building occupancy is driven by one-off external office lease payment and field leases, partially offset by streamlined facilities services and vendor contract renegotiations.
- Higher execution is also seen in one-off vendor services, commercial data, publications, and deferred FY25 payments.
- Non-personnel physical and cyber security spending remains unchanged from last year.
- FY27 budgets will decrease marginally in real terms, driven by Fund-financed allocations linked to departmental reprioritizations and recalibration of facilities and technology support services.

### Receipts (FY26 developments and FY27 projection)
- Increased external receipts reflect higher anticipated CD execution. Two new regional centers, MCD’s Riyadh Office and APD’s Shanghai Center, have contributed significantly compared to FY25.
- General receipts are projected to increase slightly compared to last year, with some change in composition.
- Higher trust fund management fees associated with higher donor funding execution and PRGT investment fees are expected to be offset by lower receipts from SRP administration, the Concordia, HQ2 leases, and rebates.
- FY26 travel/utilization and receipts table highlights (selected figures):
  - Total receipts (FY25 outturn / FY26 projection / FY27 proposed budget): 273.9 / 337.0 / 292.6 (Millions of FY26 U.S. dollars, unless otherwise noted).
  - Externally financed CD (direct cost): 231.5 / 288.0 / 249.2 (Millions of FY26 U.S. dollars).
  - General receipts: 42.4 / 49.0 / 43.4 (Millions of FY26 U.S. dollars).
  - Trust Fund Fees: 16.2 / 17.6 / 17.5 (Millions of FY26 U.S. dollars).
  - SRP Administration: 6.7 / 10.7 / 5.9 (Millions of FY26 U.S. dollars).
  - PRGT Investment Fee: 0.0 / 2.4 / 2.4 (Millions of FY26 U.S. dollars).
  - RST Trust Administration: 5.5 / 5.5 / 5.5 (Millions of FY26 U.S. dollars).
  - Concordia: 3.6 / 3.3 / 2.8 (Millions of FY26 U.S. dollars).
  - HQ2 lease: 1.4 / 1.5 / 1.1 (Millions of FY26 U.S. dollars).
- FY27 overall receipts are projected to decline slightly in real terms, primarily due to a slight reduction in general receipts related to HQ2 lease decline and adjustments to staff positions linked to RST and PRGT to align with chargebacks. External receipts are expected to remain unchanged.

*Source: OBP, ICD, SPR, HRD as presented in the provided content.*

### 18.      FY26 Pr  oj  ected Spending (Annex VI, Tables 6-7). Departments are expected to remain

### 18.      FY26 Pr  oj  ected Spending (Annex VI, Tables 6-7). Departments are expected to remain

### FY26 projected spending
- Departments are expected to remain within their working budgets in FY26, both in FTEs and dollars.
- FY26 Projected Spending is above the FY26 appropriation but within the available resource base including the remaining appropriated funds beginning in FY24 (Table 12).
- Approximately $34 million is currently projected to carry over to FY27.
- Projected FY26 carryforward $21.2M for facilities and $11.0M for IT-Intensive Capital.

### FY27 Budget Proposal — overview and drivers (Figures 9-10, Tables 8-10)
- The section presents a breakdown of the proposed distribution of Fund-financed real resources in FY27 and changes from FY26 levels.
- Key drivers:
  - Small reduction in core departmental resources due to the unwinding of exceptional temporary resources.
  - Interdepartmental changes reflect only a fraction of reallocation of activities, given significant intradepartmental reprioritization (Box 3).
  - Rebalancing across departments reflects increased resourcing for direct country work and consideration of base resources, changing needs, and pressure points.
  - Externally financed budgets are projected to be stable in FY27, with about 80 percent of these resources concentrated in CD departments.
  - After the FY23-25 augmentation ramp-up, spending/budgets in macro-structural areas are moving toward more steady state levels (Annex IV).

- Departmental shares in proposed administrative budget by department, FY27 (percent of total) — selected department shares as presented in Figure 9:
  - AFR: 8 (Fund-Financed Structural and Temporary)
  - APD: 4
  - EUR: 6
  - MCD: 5
  - WHD: 4
  - FAD: 5
  - MCM: 7
  - STA: 4
  - ITD: 9
  - CSF: 8
  - OED / IEO: 8
  - (Also presented: alternate breakdowns showing AFR 7, APD 4, EUR 5, FAD 11, MCM 9, STA 5, ITD 8, etc., and aggregates AD: 27; FD-CD: 24; FD-NON-CD: 15; Support: 24 and AD: 25; FD-CD: 33; FD-NON-CD: 13; Support: 21.)

### Fund-financed budget adjustments by department, FY26–27 (Table 8)
- Dollar budgets include structural and temporary resources; TRM-related resources moved to HRD, ICD, ITD, and STA (with rebasing of prior year TRM resources to these departments). ITD includes remaining resources from the FY26 top-up, initially held in the center.
- Center for FY27 includes a structural reduction by $3.51 million in the OED budget.
- Summary totals shown in table (selected aggregate figures as printed):
  - Total1,551.763.7
  - 1,615.4 1,562.6 52.5 1,615.1 0.0 7.7
  - Grand Total1,551.793.7
  - 1,645.4 1,559.2 78.1 1,637.3 -0.5 9.2
  - Note: table contains detailed departmental dollar-level budgets and percent changes by department.

### FTE changes by department, FY26–27 (Table 9)
- FTE budgets include structural and temporary resources; TRM-related resources moved to HRD, ICD, ITD, and STA.
- Selected totals and percent changes (as presented):
  - 2,934.547.5 2,982.0 2,935.7 32.0 2,967.7 -0.5 11.2
  - 3,229.547.5 3,277.0 3,231.7 32.0 3,263.7 -0.4 11.7
  - 3,355.547.5 3,403.0 3,355.7 32.0 3,387.7 -0.4 12.4
- Table provides departmental FTE levels (Total, Total Temp, Struct, Temp) for FY26 Budget and FY27 Proposed Budget and FY26–27 Percent Change.

### Overall budget and FTEs by department, FY27 (Table 10)
- Dollar/FTE budgets include structural and temporary resources; TRM-related resources moved to HRD, ICD, ITD, and STA.
- Selected departmental totals (as presented):
  - AFR: $412.98, FTE 879.0 (Total/ Fund-Financed / Externally Financed breakdowns shown in table)
  - APD: $123.4, FTE 255.0
  - ITD: $369.1, FTE 821.0
  - General Total (Fund-financed): $1,479.9; FTE 2,967.7
  - Grand Total (Proposed): $1,637.3; FTE 3,263.7; Fund-financed $1,615.1; FTE 3,387.7 (table contains detailed department-level $ and FTE shares and share of proposed budget)
- Gross budget/reserve shift and other adjustments are included in the table.

### Proposed budget by department — narrative highlights (Section 20)
- Area departments:
  - Most area departments have seen significant increases since pre-pandemic, reflecting sustained demand and shift toward direct country support.
  - Structural resources will increase in FY27 as temporary resources are unwound to maintain overall resources at or above FY26 levels in all departments except EUR.
  - Structural staffing will increase in all area departments, offsetting unwinding of temporary resources.
  - AFR and WHD increases linked to increased complexity in operations, including lending.
  - APD net resources mainly to prioritize delivering a successful 2026 Annual Meetings and deepening bilateral and regional surveillance on global trade shocks.
  - MCD focus on post-conflict/fragility issues and deepening regional engagement.
  - EUR to increase focus on long-term macro-structural issues and EU accession countries, including opening the new SEETAC regional center.
- Non-CD functional departments:
  - Structural resources remain unchanged in FY27; overall resources decline slightly due to temporary unwinding.
  - SPR overall resourcing unchanged; work focuses on support for country teams and major institutional reviews.
  - FIN and RES see small overall declines, with emphasis on risk-based monitoring and mainstreaming long-term challenges.
  - COM sees a decline reflecting a net reduction in one structural position and temporary dollar budget.
- CD functional departments:
  - Structural resources will decline in FY27; temporary resources broadly flat, moderating overall increase from FY20.
  - ICD, MCM, and STA see small reductions in structural positions and dollar budgets.
  - LEG slight increase in structural position but winddown in temporary position; overall dollar budget increases slightly.
  - FAD sees reduction in total staff positions reflecting temporary winddown of two positions with overall flat dollar budget.
- Support departments:
  - Structural resources will increase in FY27; overall resources roughly flat with unwinding of temporary resources.
  - ITD increase driven by cybersecurity top-up approved last year, partially offset by unwinding temporary resources linked to integrating HR cloud support services and savings from vendor rationalization and system decommissioning.
  - HRD maintain structural resources while modest decline in temporary resources linked to HR modernization.
  - CSF modest decline reflecting alignment with essential services and streamlining legacy processes.
  - SEC maintains resources at prior year levels.
  - ORM reduction in overall resources with unwinding of exceptional support for Enterprise Risk Management framework build-out.
  - OIA resources remain stable.

### FY27 change in budget allocations by department (Figure 10)
- Figure shows departmental net structural demands, change in temporary versus FY26, and FY26–27 proposed change (RHS) with departmental bars across AFR, APD, EUR, MCD, WHD, FAD, ICD, LEG, MCM, STA, COM, FIN, RES, SPR, CSF, HRD, ITD, OBP, OIA, ORM, SEC, DRS, Other.
- Visual indicates both positive and negative proposed changes across departments and between structural and temporary elements.

SECTION III. CAPITAL BUDGET

### Capital budget overview (Figure 11, Table 11)
- Proposed capital budget focuses on prudent and effective resource use, balancing investments in Fund assets at headquarters and field locations and support for strategic technology initiatives.
- FY26 Estimated. FY27-29 Proposed.
- Projected FY26 carryforward noted $21.2M for facilities and $11.0M for IT-Intensive Capital.
- The FY27 proposed capital envelope is below the preliminary figures presented in the FY26-28 MTB and 5 percent below FY26, mainly due to reduction in non-essential facilities-related projects.

- Capital spending timeline snapshot (Figure 11) shows historical FY03–FY25 and projected FY27–FY29 spending across Facilities, Major Buildings, IT Intensive, and CCE.

### Medium-term capital budget breakdown (Table 11) — selected values (Real figures in FY26 U.S. dollars)
- Total (Indicative/Proposed across FY27–29 ranges shown): e.g., Total 132.5; 138.7 126.0 129.4 127.0; 133.6 138.0 148.3 (table shows component-level detail)
- Building Facilities:
  - HQ1/HQ2/Concordia totals and year-by-year lifecycle and new investments shown (e.g., HQ1/HQ2/Concordia 34.5 23.4; Audio-visual 13.5 10.0 12.3 12.6 11.6 12.2 10.2 11.0)
- IT-Intensive (Direct + Cloud):
  - IT-Intensive totals across years: 70.9 72.6 70.7 72.6 71.0; 74.6 71.3 76.6
  - Direct Capital Investments: 45.2 45.2 44.0 45.2 43.0 45.2 42.1
  - Cybersecurity: 9.8 11.3 12.1 12.5 9.4 9.9 4.7 5.0
  - AI: 3.8 4.3 4.6 4.7 2.8 3.0 2.8 3.0
  - Cloud Capital Equivalent: 25.7 27.4 26.7 27.4 28.0 29.4 29.2 31.4

### FY26–27 real capital expenditures (Table 12) — selected figures (Millions of FY26 U.S. dollars)
- FY25 Spending: Total Capital 131.0; Facilities 63.8; IT-Intensive (Direct + Cloud) 67.2
- FY26 Est: Total Capital 131.0; Facilities 55.5; IT-Intensive 75.5
- FY26 Avail: Total Capital 166.8; Facilities 78.8; IT-Intensive 78.9
- FY27 Prop: Total Capital 126.0; Facilities 55.3; IT-Intensive 70.7
- FY27 Avail (Est): Total Capital 161.0; Facilities 78.7; IT-Intensive 82.4
- Facilities detail:
  - New Investments FY25–FY27: 36.7 8.4 17.1 7.2 15.9
  - Lifecycle replacements & repairs FY25–FY27: 26.9 46.1 57.6 36.1 47.6
  - Major Buildings FY25–FY27: 0.2 1.0 4.1 12.0 15.1
- IT-Intensive detail:
  - Direct Capital Investments FY25–FY27: 44.8 50.5 62.2 44.0 55.7
  - Transformation FY25–FY27: 16.2 10.8 16.1 2.1 7.4
  - New Investments FY25–FY27: 19.3 29.8 36.6 33.4 40.2
  - Infrastructure end-of-life FY25–FY27: 9.3 9.9 9.6 8.5 8.2
  - Cloud Capital Equivalent FY25–FY27: 22.4 25.0 25.7 26.7 26.7

- FY26 spending is projected to decrease versus FY25 for facilities, with resources available to carry over into FY27 estimated at $23.3 million. The proposed FY27 budget represents a 10 percent decline relative to FY26 for facilities.

### Facilities — highlights (Section 22)
- Two aging buildings require a lifecycle replacement strategy to manage higher ongoing needs.
- Facilities budget prioritizes essential infrastructure replacements in HQ and field, AV lifecycle updates, and HQ2 asset lifecycle replacement spread over ten years to optimize useful life and avoid budget spikes.
- FY26 lifecycle spending covers HQ1 substation and elevator modernization projects and AV replacements primarily in large HQ1 meeting spaces critical to the Annual and Spring Meetings.
- Other FY26 projects include garage drainage and lighting; mechanical, electrical, plumbing maintenance; near-term Concordia needs; and smart building initiatives.
- FY27 proposed facilities budget primarily supports opening new offices or relocating offices or residences for security or duty of care reasons.
- Major building activity: FY26 spending reflects completion of engineering studies and condition assessments to refine HQ2 Asset Lifecycle program cost and FY27–29 MTB; FY27 proposed funds to continue pre-construction activities for HQ2, develop commissioning plan, detailed programming and schematic design, followed by start of phase 1 construction work.

### IT-intensive capital — highlights (Section 23)
- IT investments guided by the Business Technology Strategy (BTS) for FY25–FY28 focusing on cybersecurity, scaling AI, and reducing technical debt.
- Medium-term pressure from cloud licensing costs requires close monitoring to avoid crowding out new investments.
- FY26 spending projected to rise 13 percent due to improved project execution.
- About $11.7 million is projected to be available to carry over to FY27 (versus $17.0 million last year).
- Proposed IT-intensive capital budget is at par with FY26 and incorporates planned needs from current projects and a strong pipeline of medium-term demand.
- Direct investments:
  - Infrastructure: FY26 spending upgrades network equipment, servers, storage capacity, and end-user equipment; FY27 proposed budget funds routine upgrades and end-user equipment.
- Priority investments:
  - Transformation projects completed or in closeout in FY26 include Nexus, iData, Intranet, and Common Review System; FY27 focuses on completing HR Modernization (improving Leave and Absence and required attestations in Workday).
  - FY26 spending includes cybersecurity and AI projects, and other critical business systems: iFIN Core banking system, SWIFT, IMF.org, Data Privacy Program, and updates to CDMAP 2.0.
  - FY27–29 proposed budget provides for ongoing projects including SFA Multi-Currency Integration, Concessional Financing, Centralized Executive Board & Governance Platform, Integrated Workplace Management System, Corporate Finance Optimization (ERP enablement), and Records and Archives.
- CCE (cloud) costs:
  - FY26 spending on cloud license expected to rise at a slightly slower pace than budgeted due to consolidation efforts by ITD.
  - Cloud costs projected to increase in FY27 to $26.7 million due to higher unit prices and retirement of on-premises systems.

### Transformation projects — capital needs (Table 13)
- Total estimated project capital needs (Nominal, FY26-27) summary:
  - Total 81.8 81.8 77.6 4.2 10.8 2.1 2.2
  - HR Modernization 7.6 7.6 4.9 2.7 3.7 2.1 2.2
  - Nexus 25.8 25.8 25.8 0.0 0.1 0.0 0.0
  - iData 29.8 29.8 29.7 0.0 0.6 0.0 0.0
  - Intranet 9.6 9.6 9.4 0.2 3.3 0.0 0.0
  - CRS-Common Review System 9.0 9.0 7.7 1.3 3.1 0.0 0.0
- FY27 estimated spend and project-level details provided in table.

Box 8. HQ2 Asset Lifecycle Replacement — summary points
- Planning refined cost estimates and reduced scope; total estimated costs reduced compared to last year reflecting a more focused, risk-informed scope.
- Discretionary improvements initially proposed for first three floors removed from near-term scope; may be considered as new investments in future years.
- Program objectives: strengthen systems reliability, ensure business continuity, advance energy efficiency, and incorporate leading building management technologies.
- Two pre-planning steps completed: due diligence review and detailed engineering assessment; ten-year project timeline structured to optimize system useful life and manage interdependencies.
- Governance structure developed incorporating lessons from HQ1 Renewal; stakeholder consultation to precede establishment of oversight bodies.
- Planning and pre-construction activities through end of FY26; design work throughout FY27; construction expected to start in the Spring of 2027.

*International Monetary Fund — FY27 Proposed Budget and Capital Plan (excerpted content).*

### Box 9.  Cybersecurity and AI

### Box 9.  Cybersecurity and AI

### Cybersecurity strategy and implementation
- The Cybersecurity Strategy remains focused on proactive defense, operational resilience, and cross-functional accountability.
- With the Board approved structural budget top-up, significant strides have been made in strengthening internal capacity.
- Ongoing recalibration of both strategy and resources will be essential as cyber threats continue to evolve, particularly with the acceleration introduced by AI.
- Such adjustments will be managed through the governance structures of the Cyber Steering Committee and CBIT, with regular updates to the Board.
- The Enterprise Risk Self-Assessment for FY27-29 maintains cybersecurity and data privacy risk to the budget as a moderate risk, reflecting:
  - the multi-year nature of the cybersecurity strategy implementation, and
  - the increasing sophistication of cyber-attacks.
- Risk mitigation actions (as listed in Table 14) include: “Maintain strong implementation of the comprehensive cyber security strategy set out in ITD’s Business Technology Strategy (BTS) within the planned funding aimed at bringing the Fund’s cybersecurity maturity to higher level.”

### AI strategy, organization, and operationalization
- The Fund aims to embed AI into staff’s daily work to enhance productivity, efficiency, and mission impact.
- The AI strategy is organized around 6 workstreams:
  - collecting and prioritizing demand and implementing the highest impact projects;
  - developing AI skills across the Fund;
  - optimizing data through its lifecycle;
  - building a robust ecosystem of AI tools and standards;
  - researching and experimenting with AI trends;
  - providing an AI risk management framework to ensure safety, fairness and trustworthiness.
- Significant progress achieved against recent AI Maturity Assessment findings included:
  - aligning the AI strategy with the Fund’s ambition;
  - forming a dedicated AI division;
  - adopting a Hub-and-Spoke operating model;
  - expanding training and talent development;
  - strengthening data readiness;
  - institutionalizing responsible AI practices.
- AI tools have transitioned from targeted pilots to scaled deployment, including:
  - Microsoft Copilot 365,
  - SPR Guidance Note Bot,
  - SAMMY,
  - AIDA 1.5,
  - Talk2Manuals,
  - FRIDA,
  - an AI Lab.
- AI governance continues to mature with the establishment of a cross-departmental responsible AI Framework.
- The next phase of work of the AI strategy will focus on:
  - adopting an AI value calculator;
  - scaling AI across core functions aligned to AI Ambition;
  - further upskilling the Fund’s workforce.
- HRD is developing an AI People Strategy to balance long-term transformation with near-term, practical AI enablement in HR operations.
- Additional details on both cybersecurity and AI can be found in ITD’s annual BTS update and presentation to the Executive Board.

### Budget risks and implications for cybersecurity and AI
- The budget risk self-assessment (updated by OBP and reflecting the new Fund’s risk rating scale in place since May 1, 2025) recognizes both significant mitigation activities and residual risk related to external drivers, requiring ongoing vigilance.
- Specific risk assessments and budget implications:
  - Cyber security/data privacy (Moderate). “Increased sophistication of cyber-attacks across organizations highlights the importance of ongoing investment to support mitigation and resilience measures.”
    - Mitigation: “Maintain strong implementation of the comprehensive cyber security strategy set out in ITD’s Business Technology Strategy (BTS) within the planned funding aimed at bringing the Fund’s cybersecurity maturity to higher level.”
  - Capital and modernization (Moderate). Noted to include: “need to address rapidly changing IT landscape (including AI, with substantial operational implications) and sizable facilities investments.”
    - Mitigation: “More strategic prioritization and monitoring (through BTS) and long-term facilities planning. Closer monitoring of capital planning and execution (including CCE) as part of strengthened governance and organizational capacity.”
- The assessment notes that, notwithstanding additional investments recently approved, cybersecurity implementation is multi-year and requires continued resourcing and governance oversight.

### Next steps and focus areas
- Continue governance oversight through the Cyber Steering Committee and CBIT with regular Board updates.
- Implement remaining items from the AI Maturity Assessment and scale AI deployments across the Fund.
- Adopt and operationalize AI risk management mechanisms to ensure safety, fairness, and trustworthiness as AI is embedded into daily work.
- Advance HRD’s AI People Strategy to support workforce upskilling and practical AI enablement in HR operations.
- Sustain planned funding and monitoring under ITD’s Business Technology Strategy (BTS) to lift cybersecurity maturity and manage capital and modernization pressures, including Cloud Capital Equivalent (CCE) considerations.

*Source: ppea2026015 - Box 9.  Cybersecurity and AI*

### 2. Funding source. The ratio of overall

### ppea2026015 - 2. Funding source. The ratio of overall

### Funding source — key statistics and financing ratios
- The ratio of overall projected FY26 spending financed by the Fund versus externally is "57/4 3."  
- In terms of direct costs—travel, analytics, management and administration (policy, financing and oversight) but excluding Fund-wide overheads—this ratio is projected at "39/61."  
- Externally financed CD is projected at "$249 million" and Fund-financed direct spending at "$160 million."  
- Direct spending is expected to reach "$406 million (70 percent of total CD spending)."  
- Delivery represents "54 percent of total CD," with about "71 percent" of delivery externally funded.  
- Analytics/tool development is "8 percent of total" and management/administration is "7 percent" and are mainly Fund-financed.  
- Personnel costs remained the largest component of direct CD (about "¾ of the total").

### Spending by output — projected allocations and shares
- Direct = delivery, travel, analytics, mgt/admin; Indirect = HR, IT, facilities, Fund governance.  
- FY26 Projected CD Spending—Funding and Outputs (In percent of total spending):  
  - Fund-financed (Direct) / Fund-financed (Indirect) / Externally-financed (Direct) / Externally-financed (Indirect) shown in underlying figures.  
- FY25/FY26 project utilization and shares (excerpted figures):  
  - Utilization Total 8591  
  - Fund Financed 9098  
  - Externally Financed 8287  
  - Shares (FF/EF) Overall 59/4157/43 Direct41/5939/61

### Spending by input — personnel and non-personnel composition
- Personnel costs account for about "¾ of the total" direct CD spending.  
- Fund-financed CD activities are mainly conducted by staff.  
- Externally financed CD is mainly delivered by short-term and long-term experts and contractual staff.

### Distribution by workstream — thematic focus
- CD delivery focuses on: public finances, monetary policy and financial system, statistics, macro-frameworks, and legal frameworks.  
- Public finance and AML/CFT, anticorruption, and legal reform work are increasing in shares.  
- FY26 Projected Delivery by Workstream (Percent): Domestic Revenue Mobilization "21.3", Macro-Fiscal Policies "2.9", Public Financial Management and Expenditure Policy "15.5", Monetary and Financial Systems "18.7", Macroeconomic Frameworks "17.8", Statistics "11.2", Legal Frameworks "5.8", Other "6.7".

### Distribution by delivery department — departmental roles
- FAD and ICD continue to have the largest CD budgets.  
- ICD provides both delivery and corporate CD services (strategy and coordination; fundraising; fiduciary oversight).  
- FAD has the largest share of total delivery.  
- FY26 Projected CD Direct Spending by Delivery Dept (In millions of FY26 U.S. dollars) shows Fund-financed and Externally-financed splits across FAD, ICD, LEG, MCM, STA, Other.

### Distribution by region — FY26 vs FY25 and FY27 outlook
- FY26 CD spending shares relative to FY25 are projected to increase in MCD, supported by contributions from Saudi Arabia, and in WHD, involving a pilot training program in the region.  
- In FY27, shares will increase in AFR and EUR relative to FY26 reflecting fiscal-debt issues and FCS (AFR) and continued scale up for Ukraine and the planned Southeast Europe Regional Technical Assistance Center (EUR).  
- Regional projections in underlying figures cover AFR, APD, EUR, MCD, WHD, Multi-region.

### Annex IV — Overview and strategic context
- The annex highlights ongoing efforts to strengthen and mainstream work on several macro-critical structural issues within the Fund’s mandate, in partnership with other organizations.  
- The Executive Board approved the FY23-25 budget augmentation, implemented as programmed.  
- Mainstreaming aims for high impact and efficient implementation after a foundational period of growth, with preliminary FY27 spending plans pointing toward more steady state levels.  
- Strategic prioritization under the CSR will inform FY28-FY30 budget cycle focus.

### Trends in Fund-financed budgets/spending (methodology and FY27 planning)
- FY27 budget plans incorporate departmental expectations, projected over/underspending versus budget in FY26, and departmental budget updates.  
- Spending estimates for macro-critical structural issues are provided by departments based on a top-down survey on personnel spending (staff and contractual) and a pro-rata share of personnel overheads and discretionary spending; figures exclude Fund-wide overheads.  
- Budgets for AI (economics) and Trade/Fragmentation are collected from FY26.

### Spending by macro-critical structural issue areas — findings and drivers

- Debt
  - FY26 Fund-financed direct spending is up "20 percent versus FY25," driven by ramp up of debt work in AFR, FAD, LEG, STA, and SPR.  
  - Work includes direct country support for countries facing high risks of debt distress and debt restructuring both under and outside the Common Framework; advancing work at the Global Sovereign Debt Roundtable (GSDR); cooperating with the World Bank on debt services challenges and improving debt data reporting and disclosure.  
  - Area and CD departments account for about "60 and 30 percent" of Fund-financed spending, with non-CD functional making up the remainder.  
  - CD activities constitute about "a third" of the spending, with external resources financing "60 percent" of these activities, especially in FAD and MCM.  
  - Increases between FY25 and FY27 budgets are driven by AFR, EUR, SPR, MCD, ICD, and APD, partially offset by a decline in RES.

- Climate
  - Fund-financed spending on macro-critical aspects of climate grew from a very low base, supported by FY21 strategy and augmentation (some "$25 million" allocated specifically). Spending in ramp-up consistently exceeded expectations but has begun to moderate as work is mainstreamed.  
  - For FY26, spending was below expectations set by departments, particularly in FAD and SPR.  
  - FY26 work focused on integrating climate aspects into Article IV reports, climate risk analysis, and climate-related financial risks supervision into FSAPs; examples include impacts on growth and financial systems (Morocco, Zimbabwe, Jamaica, Bahamas, Tuvalu, Marchall Island).  
  - Area and CD departments each account for about "45 percent" of Fund-financed spending; CD comprises less than "a third" of activities and is financed almost evenly by Fund and external resources.  
  - Declines between FY25 and FY27 budgets reflect a shift to more targeted coverage and are driven by EUR, SPR, RES, APD and STA, with increases in AFR.

- Governance/Anticorruption
  - Fund-financed direct spending in FY26 is estimated to rise "3 percent versus FY25," concentrated in AFR, LEG, and FAD; spending was somewhat above departmental expectations, mainly in AFR and FAD.  
  - Work focused on macro-critical governance vulnerabilities in fiscal, financial, and monetary areas; integration of Governance Diagnostic Assessments into Article IV consultations and program design (examples: Egypt, Ghana, Zambia); deeper coverage of governance and transnational corruption in bilateral surveillance (e.g., Caribbean jurisdictions).  
  - Area and CD departments account for "65 and 30 percent" of Fund-financed spending; CD spending represents less than "a third" of overall spending and is mainly financed with external funding.  
  - CD departments account for "55 percent" of Fund-financed spending on governance; external resources finance slightly above "half" of CD activities.  
  - Increases between FY25 and FY27 budgets are driven by APD, AFR, FAD, and LEG; declines driven by EUR. The Board will receive an update on Framework for Fund Engagement on Governance in late 2026.

- Digital money
  - Fund-financed spending is estimated to be up "11 percent versus FY25," with broad increases across the Fund; spending was nearly in line with departmental expectations in the FY26 medium-term budget process.  
  - Work covered digital payment systems, innovations in financial market infrastructures, regulation/supervision of fintech and crypto assets, including stablecoins in Article IVs and FSAPs; the CBDC Virtual Handbook informed analysis. Some CD projects delivered on these topics.  
  - CD departments account for "55 percent" of Fund-financed spending in one breakdown (see figures); overall CD departments account for a majority of spending in this area. (Figures indicate CD departments account for substantial shares; exact departmental shares shown in underlying charts.)

- Inclusion/Gender
  - Fund-financed spending is estimated to have declined by about "30 percent relative to FY25 peaks," reflecting more selective coverage after ramp-up; spending was in line with FY26 medium-term budget expectations.  
  - Work focuses on macroeconomic impact of inequality, social spending, gender in Article IVs, and inclusion in program design (examples: Saudi Arabia, Bangladesh, Turkiye, Korea).  
  - Area departments account for about "half" of Fund-financed spending; CD functional departments for about "a third."  
  - CD work constitutes almost "a third" of overall spending and is financed mainly with external resources.  
  - Decreases between FY25 and FY27 budgets are driven by SPR, RES, EUR, APD, and FAD; an increase in AFR will partly offset declines.

- Trade/Fragmentation
  - Fund-financed direct spending in FY26 is estimated to increase "36 percent relative to FY25," with most spending concentrated on non-CD activities in APD, AFR, EUR, RES, and SPR; spending was slightly above departmental expectations, particularly in AFR and SPR.  
  - Work focuses on helping countries navigate geoeconomic fragmentation and proliferation of trade and industrial policies; operationalizing trade strategy by integrating macroeconomic, fiscal, and financial perspectives; providing updated trade policy and modeling guidance; and multilateral surveillance on global effects of trade policy actions.  
  - Area departments account for about "70 percent" of Fund-financed spending; non-CD functional departments nearly "20 percent"; CD functional departments the rest.  
  - Little CD work in this area; all CD work concentrated in ICD and financed by Fund resources.  
  - Increases between FY26 and FY27 budgets are driven by APD, AFR, WHD, RES and SPR.

- Artificial Intelligence (economics)
  - Fund-financed spending in FY26 is broadly unchanged from FY25, concentrated in APD, EUR, AFR, MCM, and RES.  
  - Work is in early stages, centered on country analysis of macroeconomic/financial impacts of AI (labor, financial markets), surveillance knowledge gathering, expert convenings to share policy responses and foster international consensus and regulation.  
  - Area departments account for about "70 percent" of Fund-financed spending, non-CD functional departments "20 percent," and CD functional departments the rest.  
  - Little CD work in this area, consistent with early stage; CD spending concentrated in FAD and ICD and mainly financed by external resources.  
  - FY27 budgets are roughly flat at last year’s level; spending driven by EUR, RES, MCD, APD, and AFR. The Executive Board will discuss the Fund’s Work in AI this Fall.

*Source: ICD, OBP, and staff estimates.*

### Annex IV. Figure 8. AI (Economics)

### Annex IV. Figure 8. AI (Economics)

### Strengthened Budget Data Framework — purpose and scope
- Objective: ensure the Fund’s budget data framework remains fit-for-purpose to support institutional decision-making and monitoring, addressing end-of-life systems and processes, expanded granularity and coverage of reporting, and improved linkage with strategic decision making (including Management Implementation Plan (MIP) commitments).
- Three-pronged approach: Strengthened Costing Practices; Enhanced Reporting / Monitoring; Budget Modernization.
- Focus areas: enhancing data accuracy, comparability, and traceability, as well as transparency and ease of use across the Fund.
- SEC to lead additional activities to improve accessibility of budget-related information for ED offices.

### Strengthening Costing Practices — key actions and timing
- Standardized upfront costing:
  - Updated guidelines (anticipated in the management-led streamlining initiative) will require departments to provide estimates for immediate and projected medium-term costs associated with new policy proposals for lead and affected departments.
  - Role: inform resource allocation decisions by clarifying what is feasible within existing resources vs. what requires additional net resourcing, surfacing trade-offs in the medium-term budget.
- Integration into medium-term planning:
  - Consistent resource estimates will be integrated into the medium-term budget to provide a holistic view of institutional resourcing needs and facilitate assessment of trade-offs (expanding information provided in budget reports on resource implications of policy reviews and evaluations).
- Non-recurrent items in Board Work Program:
  - Since FY25, costing of non-recurrent items included in the Board Work Program (BWP) to clarify resource impact; FY26 BWP expanded to include costing estimates of multi-year items over the full cycle.

### Enhancing Reporting and Monitoring — initiatives and deliverables
- Objective: expand and refine budget reporting and monitoring through enhancements to scope, granularity, and presentation of budget data to strengthen transparency and provide strategic insights for the Board and staff.
- Output costing workstreams:
  - Completed review of underlying definitions and documentation to support more robust time-series information and flexibility for changes in Fund activities.
  - End-of-life systems updates: rollout to be completed in the first half of CY26.
  - Related dashboards: user-friendly one-stop data source translating time reporting to spending data at the output level; support aggregate reporting of changes in spending and budgets by output.
  - Improved tracking of CD spending (direct delivery costs and associated overheads) and strengthened alignment between budget and CD platforms drawing on time-reporting data.
- Topics (spending by macro-critical structural issues):
  - Refinement of a standardized, top-down estimation framework and related tools to support consistent time-series data for selected issue areas (e.g., climate, debt); final estimates provide basis for discussion of resource allocation and spending trends.
- Inputs (traditional “inputs” reporting):
  - Monitoring and reporting of budgets and spending by personnel and non-personnel costs at aggregate and departmental levels and by funding source.
  - Efforts to reduce manual collection via standardization and automation; recent reporting expanded information on utilization, volume- and price-driven changes, and average costs by key dimensions.
  - Noted: over three-quarters of administrative spending is personnel-related.
- Personnel-specific tools and updates:
  - Workforce planning dashboards (drawing on Workday-based HR position data) rolled out with HRD; integrate authorized budgets with actual and historical headcount data to support organizational and workforce planning and provide real-time snapshots (workforce structure, funding status, vacancies, attrition, utilization rates).
  - Additional updates to enhance data on staffing by grade-band and support scenario analysis; enable expanded HRD-led workforce planning.
  - IBBIS interface provides running data on budget execution by group (staff; contractuals; discretionary, etc.); upcoming enhancements to simplify personnel execution presentation and better recognize IMF02-related staff estimation complexities.
  - New dashboards for area department teams to track resourcing from functional departments in their region, drawing on time-reporting data (similar to existing CD-related dashboards).

### Ongoing Modernization — systems, documentation, and training
- Program elements: processes/procedures review; systems modernization; documentation and corporate data governance alignment.
- Manual / Training:
  - Budget-related policies, procedures, guidelines, and technical practices reviewed and updated where needed.
  - Online budget manual to be finalized in the first half of CY26.
  - Online, modular training program expected during FY28.
- Other key initiatives:
  - Address sizable legacy issues in budget infrastructure through well-sequenced medium-term investments.
  - Preparation for and participation in broader cross-departmental update of the Fund’s Enterprise Resource Planning Framework (ERP), supported by a strong corporate data governance framework.
  - For OBP: comprehensive documentation of the budget data plan; ensure consistency and integration with related data structures, processes, and reporting frameworks across the ERP.
  - Enhancements and simplification to the time reporting system with a strong focus on user experience.
  - Streamlining departmental access to budget data from various systems.

### Selected fiscal and operational postings referenced
- Timeline markers and fiscal years referenced in the annex and figures:
  - FY20, FY24, FY25, FY26, FY27, FY28, FY29, CY26, FY25–27, FY18, FY22, FY23, FY24, FY25, FY26, FY27.
- Specific program/initiative start or inclusion years:
  - Non-recurrent items costing included in the Board Work Program since FY25.
  - FY26 BWP expanded to include multi-year costing estimates.
  - Rollout of end-of-life systems updates: first half of CY26.
  - Online budget manual: first half of CY26.
  - Online, modular training program: expected during FY28.
- Noted composition of spending:
  - Over three-quarters of administrative spending is personnel-related.

*Source: Dept estimates.*

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_Source: https://www.imf.org/-/media/files/publications/pp/2026/english/ppea2026015.pdf_