Expenditure Conditionality in IMF-supported Programs

IMF Working Papers, December 7, 2018

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Expenditure Conditionality in IMF-supported Programs

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Bibliographic details

• Authors: Sanjeev Gupta, Michela Schena, Reza Yousefi
• Published: December 7, 2018
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781484389072.001

Study scope and data

• Granular dataset compiled covering 115 countries for the 1992-2016 period.
• Paper length: 31 pages.
• Authors: Sanjeev Gupta, Michela Schena, Reza Yousefi.
• Publication: IMF Working Papers, Working Paper No. 2018/255 (Volume: 2018, Issue: 255).
• DOI: https://doi.org/10.5089/9781484389072.001
• ISBN: 9781484389072
• ISSN: 1018-5941

Key findings on conditionality and spending composition

• Conditionality on specific elements of spending can help achieve a program’s short-term objectives.
• Structural conditionality delivers lasting benefits.
• Structural public financial management conditionality (examples: budget execution and control) has been effective in boosting the long-term level of:
  • education expenditures,
  • health expenditures,
  • public investment expenditures.
• Conditionality aimed at raising spending in these areas may come at the expense of other expenditures.
• Successful implementation (and not mere existence) of the conditionality is crucial for improved outcomes.

Policy implications and relevance

• Structural public financial management reforms should be prioritized where the objective is durable increases in education, health, and public investment spending.
• Policymakers targeting the Sustainable Development Goals (SDGs) should consider:
  • Emphasizing implementation capacity for conditionality, not just design.
  • Anticipating trade-offs between raising specific expenditure categories and reductions in other expenditures.

Source: Expenditure Conditionality in IMF-supported Programs (IMF Working Papers, Working Paper No. 2018/255).

Content in this bundle

• Expenditure Conditionality in IMF-Supported Programs, WP/18/255, December 2018
  • Expenditure Conditionality in IMF-Supported Programs, WP/18/255, December 2018 (Markdown version)
  • Expenditure Conditionality in IMF-Supported Programs, WP/18/255, December 2018 (PDF)