IMF Executive Board Approves FY2023–FY2025 Medium-Term Budget

IMF News, May 27, 2022

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Canonical URL: IMF Executive Board Approves FY2023–FY2025 Medium-Term Budget

Meeting date: April 28, 2022.
Board considered the FY23–25 Medium-Term Budget in the context of significant economic uncertainty driven by the fallout of the pandemic, the war in Ukraine, and shifting monetary conditions in major markets.
The Board emphasized the need for the Fund to remain agile and to work in close cooperation with partners.
The Board stressed continued strict budget discipline through robust savings and reprioritization, while approving a targeted budget augmentation framework after a decade of flat real budgets.

Real net administrative budget will increase on average by 2 percent each year during FY23 to FY25 relative to FY22, returning to a flat real budget trajectory thereafter.
New resources are linked to specific deliverables identified in Board-endorsed strategies to address:
- climate change,
- the rise of digital money,
- macrofinancial surveillance,
- fragility,
- inequality.
The approved budget is consistent with projected income.

FY23 period: May 1, 2022–April 30, 2023.
Approved net administrative budget for FY23: US$1,295 million.
This represents a 1.8 percent ($21.8 million) real increase relative to FY22.
FY23 capital budget: US$78 million, a reduction of 1.3 percent from FY22, intended to allow critical investments and to incorporate lessons from the remote environment and recent modernization experience.

Maximum amount of unused budget resources that can be carried forward from previous years reduced from 8 to 7 percent of the underlying budget—an initial unwinding of exceptional temporary space introduced in FY21 for immediate Covid-related crisis needs.
Board approved an increase in the limit and a carryforward mechanism for externally funded spending, linked to a ramp up in capacity development activities to support the Fund’s structural transformation agenda.

Source: IMF press release, "IMF Executive Board Approves FY2023–FY2025 Medium-Term Budget."