## FY 2022 - FY 2024 Medium-Term Budget

_Policy Papers, May 27, 2021_

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**Canonical URL:** [FY 2022 - FY 2024 Medium-Term Budget](https://www.imf.org/en/publications/policy-papers/issues/2021/05/27/fy-2022-fy-2024-medium-term-budget-460487)

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## Bibliographic details
- Published: May 27, 2021
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9781513583327.007

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### Context and challenges
- The Fund faces twin challenges from the COVID-19 crisis: uneven early crisis recovery across countries and widespread daunting crisis legacies.
- Longer-term challenges requiring stepped‑up Fund effort and partnership include climate change, digitalization, and increasing divergence within and between countries.

### FY 22–24 budget framework
- Following a decade of flat real budgets, staff will propose a structural augmentation for consideration by fall 2021 to be implemented over two to three years beginning in FY 23.
- After the proposed augmentation, the budget would remain stable on a real basis at a new, higher level, recognizing the importance of ongoing fiscal prudence.

### FY 22 administrative budget
- The proposed FY 22 budget:
  - Sustains crisis response.
  - Provides incremental resources for long-term priorities within the flat real budget envelope.
  - Is built on extensive reprioritization and savings, including from modernization.
  - Includes a proposed temporary increase in the carry forward ceiling to address crisis needs during the FY 22 to FY 24 period.

### Capital budget and modernization
- Large-scale business modernization programs continue to be rolled out to strengthen agility and efficiency of Fund operations.
- In response to a shift toward cloud-based IT solutions, staff propose a change in the budgetary treatment of these expenses.
- Investment in facilities will focus on timely updates, repairs, and modernization to prepare for a post-crisis Fund with greater virtual engagement and a new hybrid office environment.

### Budget sustainability and financial position
- The FY 22–24 medium-term budget framework, including assumptions for a material augmentation, is consistent with:
  - A projected surplus in the Fund’s medium-term income position.
  - Continued progress towards the precautionary balance target for coming years.

### Budget risks and risk management
- Risks to the budget remain elevated and above risk acceptance levels in the midst of a global crisis.
- Key risk drivers include:
  - Uncertainty around the level of demand for Fund programs and ensuing staffing needs.
  - Uncertainty around future donor funding for capacity development (CD).
- Enterprise risk management continues to be strengthened alongside the budget.

### Subject areas and keywords (as listed)
- Subjects: Budget planning and preparation, Climate change, COVID-19, Environment, Expenditure, Financial Sector Assessment Program, Financial sector policy and analysis, Health, Monetary policy, Political economy, Public financial management (PFM)
- Keywords: approved FY, budget framework, Budget planning and preparation, budget summary, capital budget envelope, Climate change, COVID-19, Financial Sector Assessment Program, Global, IMF's budget deflator, Medium-Term capital budget, risk matrix

*FY 2022 - FY 2024 Medium-Term Budget, Policy Paper No. 2021/038 (2021); Pages: 79; DOI: https://doi.org/10.5089/9781513583327.007*

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_Source: https://www.imf.org/en/publications/policy-papers/issues/2021/05/27/fy-2022-fy-2024-medium-term-budget-460487_