IMF Working Papers

Designing Expenditure Policy Conditionality in IMF-Supported Programs

By Emine Hanedar, Zsuzsa Munkacsi

January 24, 2025

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Format: Chicago

Emine Hanedar, and Zsuzsa Munkacsi. "Designing Expenditure Policy Conditionality in IMF-Supported Programs", IMF Working Papers 2025, 022 (2025), accessed February 7, 2025, https://doi.org/10.5089/9798400298417.001

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This gap-filling paper provides granular advice on how to design quantitative and structural conditionality of IMF-supported programs in six expenditure policy areas: social assistance, energy subsidies, pension spending, health spending, education spending, and wage bill management. Such granular advice is based on a stocktaking exercise: an analysis of 105 programs approved between 2002 and July 2021 containing a ca. 1400 conditions. Conditions are key to identify outcomes or actions seen as critical for program success or monitoring, and so are essential for financial support countries can receive from the Fund.

Subject: Energy subsidies, Expenditure, Health, Health care spending, Pension spending

Keywords: Caribbean, Conditionality, E. public health spending, East Africa, Education spending, Energy subsidies, Europe, Expenditure policy, Health care spending, Health spending, IMF working papers, IMF-supported programs, Middle East, North Africa, Pension spending, Policy area, Policy conditionality, Reform plan, Social assistance, Wage bill management

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