## IMF-WBG Background Paper for G-7: Principles for Effective and Efficient Support for Domestic Resource Mobilization (DRM)

_Policy Papers, April 28, 2026_

## Source details

**Canonical URL:** [IMF-WBG Background Paper for G-7: Principles for Effective and Efficient Support for Domestic Resource Mobilization (DRM)](https://www.imf.org/en/publications/policy-papers/issues/2026/04/27/imf-wbg-background-paper-for-g-7-principles-for-effective-and-efficient-support-for-575646)

## Other formats

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## Bibliographic details
- Published: April 28, 2026
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9798229045681.007

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### Summary and central findings
- Domestic Resource Mobilization (DRM) is described as central to achieving sustainable financing for development, building fiscal buffers, and strengthening state capacity.
- Recent IMF and World Bank work shows many countries—especially low-income countries (LICs) and fragile and conflict-affected states (FCSs)—are still collecting less than 15 percent of GDP in tax revenue.
- World Bank and IMF research suggests that collection beyond this threshold is linked to lasting improvements in growth, public service delivery, and state capacity.
- DRM is identified as central to the IMF-WBG three pillar approach to helping countries address liquidity challenges (IMF and World Bank 2024a) and is crucial for:
  - building fiscal space to advance public spending for development,
  - reducing reliance on volatile external financing,
  - supporting jobs and growth,
  - strengthening the social contract between the state and its citizens.

### Policy implications and focus areas
- Emphasis on strengthening DRM, particularly in LICs and FCSs, to move tax collection beyond the identified threshold and enable durable improvements in growth and public service delivery.
- Positioning DRM support as a core element of the IMF-WBG response to liquidity challenges, to create fiscal space and reduce external financing volatility.
- Reinforces the role of DRM in enhancing state capacity and the social contract through improved revenue collection and public spending.

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_Source: https://www.imf.org/en/publications/policy-papers/issues/2026/04/27/imf-wbg-background-paper-for-g-7-principles-for-effective-and-efficient-support-for-575646_