Fiscal Policies

Overview

Fiscal policy affects macroeconomic stability, growth, and income distribution. Citizens expect their governments to ensure value-for-money for public spending, a fair and efficient tax system, and transparent and accountable management of public sector resources.

The IMF has been a leading source of fiscal policy and management expertise worldwide. The IMF monitors and analyzes global fiscal trends and advises IMF member countries on fiscal issues directly. This page highlights the main fiscal policy issues currently under discussion, as well as provides links to research, publications, and commentary.

Fiscal Monitor 2025: Fiscal Policy under Uncertainty

Chapter 1 of the Fiscal Monitor   Escalating uncertainty and policy shifts are reshaping the fiscal outlook. Global public debt projections have been revised upwards, while tariffs, market volatility, increased defense spending, and challenging foreign aid are intensifying risks. Countries must implement gradual fiscal adjustments within credible medium-term frameworks, reducing debt and building buffers against heightened uncertainty.

Blogs

Disclosing Public Debt Boosts Investor Confidence, Cuts Borrowing Costs 
June 12, 2025

Greater debt transparency builds investor confidence, helps reduce borrowing costs, and strengthens debt sustainability—reducing the risk of shocks that can lead to a debt crisis

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Debt is Higher and Rising Faster in 80 Percent of Global Economy
May 29, 2025

Fiscal Policy under mounting uncertainty means government budgets need resilience—particularly in countries whose economic weight makes them influence global trends

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 colorful staircase at batu caves, kuala lumpur in malaysia. a very steep walk up to the cave.
Asia Can Boost Economic Resilience Amid Surging Trade Tensions
April 24, 2025

Stronger regional economic ties can help build resilience during a time of growing policy uncertainty

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Rising Global Debt Requires Countries to Put their Fiscal House in Order
April 23, 2025

Amid heightened uncertainty, policymakers will need to deal with complex trade-offs between debt, slower growth, and new spending pressures

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Why Latin America Needs Lower Deficits and Stronger Fiscal Rules
December 18, 2024

The increase in debt in the last decade points to the need for lowering deficits, rebuilding space to deal with shocks, and strengthening fiscal rules

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Persistent Fall in Private Borrowing Brings Global Debt Down
December 2, 2024

Empirical analysis points to low growth prospects as the main driver of this trend in 2023.

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Publications

Related Videos

Press Briefing: Fiscal Monitor, April 2025
May 21, 2025

Escalating uncertainty and policy shifts are reshaping the fiscal outlook.

Fiscal Monitor, October 2024: Key Questions
October 23, 2024

Director of the IMF's Fiscal Affairs Department, Vítor Gaspar, answers key questions on the latest Fiscal Monitor. How fast are global debt levels rising, what challenges do policymakers face, and what’s our advice?

Measuring the Implications of AI on the Economy
September 20, 2024

The theme of this year’s Statistical Forum is Measuring the Implications of Artificial Intelligence (AI) on the Economy. The increased use of AI presents both opportunities and challenges, with significant economic and societal implications.

The Great Tightening: Insights from the Recent Inflation Episode
October 22, 2024

Global inflation has tripled since pre-pandemic levels, challenging policymakers. Our analysis shows the ripple effects of monetary policy remain largely consistent with historical patterns, despite the unique nature of recent economic shocks.

Broadening the Gains from GenAI: The Role of Fiscal Policies
June 17, 2024

First Deputy Managing Director Gita Gopinath joined Washington Post's Heather Long for a fireside chat about fiscal policies in the age of AI

Policy Conference on Managing Financial Risk: Lessons from the crisis response to COVID-19
October 11, 2023

The report takes stock of mitigation policies across countries and presents the trilemma facing policymakers of balancing between achieving climate goals, debt sustainability, and political feasibility.