Transforming Public Finance Through GovTech

By David Amaglobeli, Ruud A. de Mooij, Andualem Mengistu, Mariano Moszoro, Manabu Nose, Soheib Nunhuck, Sailendra Pattanayak, Lorena Rivero del Paso, Frankosiligi Solomon, Rebecca Sparkman, Hervé Tourpe, Gerardo Uña

September 7, 2023

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David Amaglobeli, Ruud A. de Mooij, Andualem Mengistu, Mariano Moszoro, Manabu Nose, Soheib Nunhuck, Sailendra Pattanayak, Lorena Rivero del Paso, Frankosiligi Solomon, Rebecca Sparkman, Hervé Tourpe, and Gerardo Uña. Transforming Public Finance Through GovTech, (USA: International Monetary Fund, 2023) accessed October 6, 2024

Disclaimer: This Staff Discussion Note represents the views of the authors and does not necessarily represent IMF views or IMF policy. The views expressed herein should be attributed to the authors and not to the IMF, its Executive Board, or its management. Staff Discussion Notes are published to elicit comments and to further debate.

Summary

Digital divide across countries and within countries continues to persist and even increased when the quality of internet connection is considered. The note shows that many governments have not been able to harness the full potential of digitalization. Governments could play important role to facilitate digital adoption by intervening both on supply (investing in infrastructure) and demand side (increase internet affordability). The note also documents significant dividends from digital adoption for revenue collection and spending efficiency, and for outcomes in education, health and social safety nets. The note also emphasizes that digitalization is not a substitute for good governance and that comprehensive reform plans embedded in National Digital Strategies (NDS) combined with legal and institutional reforms are needed to ensure that governments can reap full benefits from digitalization and manage the risks appropriately.

Subject: Economic sectors, Financial crises, Public financial management (PFM), Revenue administration, Technology

Keywords: A. digital divide, A. government strategy, Asia and Pacific, Assessment tool, Caribbean, Digitalization, Europe, Global, Governance pillar, Government technology, Government transfer, GovTech, Inequality, Management information system, Middle East, North Africa, PFM information systems, Public Finance, Social Dividends, Staff discussion note SDN2023/004

Publication Details

Pages:

45
Volume:

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DOI:

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Issue:

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Series:

Staff Discussion Notes No. 2023/004
Stock No:

SDNEA2023004
ISBN:

9798400245480
ISSN:

2617-6750

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