## Collecting More and Spending Better

_IMF News, June 5, 2024_

## Source details

**Canonical URL:** [Collecting More and Spending Better](https://www.imf.org/en/news/articles/2024/06/05/sp0605-kenji-okamura-collecting-more-and-spending-better)

## Other formats

- [Markdown version](/en/news/articles/2024/06/05/sp0605-kenji-okamura-collecting-more-and-spending-better/index.md)
- [Structured JSON version](/en/news/articles/2024/06/05/sp0605-kenji-okamura-collecting-more-and-spending-better/index.json)
- [Bundle manifest](/en/news/articles/2024/06/05/sp0605-kenji-okamura-collecting-more-and-spending-better/bundle-manifest.json)

## Bibliographic details
- Published: June 5, 2024

---

### Context and fiscal challenges
- Event: Opening Remarks by Deputy Managing Director Kenji Okamura at the Ninth Tokyo Fiscal Forum, June 5, 2024.
- Key constraints facing policymakers:
  - Global public debt remains high—around 9 percentage points above pre-pandemic levels as of end-2023.
  - Medium-term growth projections are the weakest in decades—just above 3 percent.
  - Even with inflation coming down, interest rates could remain higher for longer.
- Consequences:
  - These challenges constrain government budgets while public spending demands rise, including to address climate change and aging populations.
  - Mobilizing revenue and spending more efficiently are essential to rebuild fiscal buffers, prepare for future shocks, and deliver sustainable development.

### Collecting more (tax capacity and revenue mobilization)
- IMF research finding:
  - With better tax design—including more fair and inclusive taxation—and stronger public institutions, emerging and developing economies can improve their tax-to-GDP ratios by up to 9 percentage points on average.
- Focus of the conference:
  - Strengthening tax capacity through effective policies and well-functioning revenue administrations.
- Policy implications implied in the remarks:
  - Prioritize tax design that is fair and inclusive.
  - Invest in strengthening public institutions and revenue administrations to mobilize domestic resources.

### Spending better (fiscal consolidation and frameworks)
- Timing and policy stance:
  - With inflation falling, it is time for policymakers to pivot toward fiscal consolidation.
  - The pace of tightening will vary across countries but should broadly strike a balance between fiscal risks and the strength of private demand.
- Essential elements for sound policy:
  - Medium-term plans.
  - Credible fiscal frameworks.

### IMF support, initiatives, and partnerships
- Instruments and initiatives noted:
  - Domestic Resource Mobilization Initiative (with the World Bank) to help members increase resources, spend more effectively, and build domestic capital markets.
  - Global Public Finance Partnership, or GPFP, to provide a one-stop-shop for capacity development on both revenue and spending.
- Cross-cutting integration in GPFP:
  - Climate change, gender, inclusion, and digitalization to help countries prepare for transformations ahead.
- Convening role:
  - Fora like the Tokyo Fiscal Forum are used to share experiences, insights, and best practices for strong fiscal policy.
- Operational message:
  - The IMF offers support to help countries turn ideas into policy and put policy into action.

### Closing message
- Core prescription: Working together to collect more and spend better to build growth, jobs, and prosperity.
- Tone: Collaborative and action-oriented—IMF stands ready to support members’ fiscal strengthening.

*Opening Remarks by Deputy Managing Director Kenji Okamura at the Ninth Tokyo Fiscal Forum, June 5, 2024.*

---


## References

- [Kenji Okamura](https://www.imf.org/en/About/senior-officials/Bios/kenji-okamura)
- [Japan and the IMF](http://www.imf.org/external/country/JPN/index.htm)
- [Speeches](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2024/06/05/sp0605-kenji-okamura-collecting-more-and-spending-better_