IMF Executive Board Approves FY2024–FY2026 Medium-Term Budget
IMF News, May 31, 2023
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- IMF Executive Board Approves FY2024–FY2026 Medium-Term Budget
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- Published: May 31, 2023
Global context and Board assessment
- The Executive Board considered the FY24-26 Medium-Term Budget "against a complex global economic backdrop."
- Key global challenges cited:
- The pandemic is receding in many countries.
- The global impact of Russia’s invasion of Ukraine.
- Intensifying geopolitical fragmentation.
- Multi-decade high inflation.
- Recent financial sector developments increasing uncertainty and downside risks.
- The Board emphasized the Fund’s need to adapt to members’ needs in an increasingly shock-prone world and to support resilience and structural transformation in close cooperation with external partners.
Budget discipline, augmentation framework, and priorities
- The Board "welcomed the Fund’s continued commitment to strict budget discipline through robust savings and reprioritization."
- Executive Directors endorsed the allocation of the second phase of resources under the three-year targeted budget augmentation framework approved in 2022.
- New resources are linked to:
- Tackling the macro-critical challenges of climate change.
- Addressing the rise of digital money.
- Reinforcing the Fund’s work on macrofinancial surveillance, fragility, and inequality.
- The Board "reiterated its expectation that the Fund would return to a flat real budget trajectory in FY26."
Approved FY24 administrative and capital budgets
- Approved net administrative budget for FY24 (May 1, 2023–April 30, 2024):
- US$1,411 million
- Described as "consistent with projected income and continued progress towards the precautionary balances target."
- The budget includes a 2 percent structural augmentation.
- Carryforward of unused budget resources:
- The maximum amount that can be carried forward from previous years will be reduced from 7 to 6 percent of the underlying budget.
- Purpose: to continue the gradual unwinding of temporary pandemic-related resourcing introduced in FY21.
- FY24 capital budget:
- US$108 million
- Reflects resumption of facilities-related investments including hybrid workspace and field-based needs, continued stabilization of information technology investments, and a projected increase in cloud costs.
Capacity development and externally funded spending
- The Board endorsed the second of a three-year step increase in the externally funded spending limit approved last year to support capacity development (CD) efforts in structural transformation areas.
Documents and contacts noted on the page
- Press Release No. 23/184.
- Media contact listed: PRESS OFFICER: Ting Yan; Phone: +1 202 623-7100; Email: MEDIA@IMF.org.
- Publication date on page: May 31, 2023.
- Additional materials: "Additional information can be found in the staff paper on the FY24-26 Medium-Term Budget."
Source: IMF press release "IMF Executive Board Approves FY2024–FY2026 Medium-Term Budget."