COVID-19: IMF Notes on Fiscal Issues

The IMF has published a series of notes in its Special Series on COVID-19. The notes discuss PFM issues and other fiscal topics. The Special Series notes are produced by IMF experts to help member countries address the economic effects of COVID-19.

 In addition, you can find all of the PFM Blog articles covering the COVID-19 crisis  on our PFM Blog Coronavirus Articles page.

Public Sector Balance Sheets and the COVID-19 Crisis

Posted by Alex Metcalfe and Sybi Hida^[1]

 The Global Financial Crisis of 2008 forced policymakers to expand their macroeconomic analysis toolkit with new tools. These tools helped policymakers apply a macroprudential approach to mitigate risk to the financial system. A recent report from the Association of Chartered Certified Accountants (ACCA) - “Sustainable Public Finances Through COVID-19” - argues that existing PFM tools also need to be expanded.

Delivering Effective Public Investment Management and Governance in Africa

Posted by Robert Clifton, Kubai Khasiani and Imran Aziz^[1]

Public Investment Management (PIM) Units have been established across the Sub-Saharan Africa (SSA) region in recent years. These units are usually located in a country’s Ministry of Finance or the Ministry of Planning or Economic Development. Their purpose is to strengthen the appraisal, selection and implementation of infrastructure projects that many countries are (or will be) using to boost the economic recovery from the COVID-19 pandemic. A recent week-long online workshop, organized by three of the IMF’s Regional Technical Assistance Centers in Africa, brought together 21 countries and more than 80 participants from francophone, lusophone, and anglophone countries to discuss opportunities, challenges and experiences.[2]

Enhancing Government Effectiveness and Transparency: The Fight Against Corruption

Posted by Joel Turkewitz^[1]

Reducing corruption in customs operations in Afghanistan or in the purchase of rations for the military in Somalia are two of the surprising cases presented in a recent book from the World Bank. The book—primarily a compendium of case studies and country examples—illustrates  how varied are the pathways used to reduce corruption. It also highlights many common features.

The case for clarity in reporting of debt and fiscal risks

Posted by Greg Rosenberg^[1]

Soaring global public-sector debt and widening fiscal distress highlight the need for greater transparency and clarity in debt and fiscal risk reporting.

How Government Equity Investments Can Help Boost the Recovery

Posted by Dag Detter, Stefan Folster and Josh Ryan-Collins ^[1]

As the second wave of the Covid-19 virus spreads across Europe, it is becoming clear that many firms in key sectors will be unable to generate the revenues needed to pay back the huge accumulation of corporate debt, much of it owed to, or underwritten by governments or central banks.  Widespread defaults due to debt-induced insolvencies could lead not only to higher unemployment but would also damage the financial system, the public finances and the wider economy. Even firms who do not face redundancies or insolvency may be reluctant to invest for many years to come given the debt overhang and low prospects of growth.

Tackling Corruption in Governments’ COVID-19 Health Responses

Posted by Aneta Wierzynska (Global Fund), David Clarke (WHO), Mark DiBiase and Anga Timilsina (UNDP), and Srinivas Gurazada (World Bank)

When the World Bank expressed concern that “prices have gone up by 20 times—or 2,000%—for some items during COVID19”, the question arose of whether market demand and supply alone had produced such an extraordinary result. Or was the situation compounded by elite capture of resources, manipulation of markets, and corruption?

Best Practices in Project Appraisal and Selection

Posted by Robert Taliercio^[1] and Eduardo Andrés Estrada^[2]

Strong project appraisal and selection are critical for good infrastructure governance. Project appraisal is the regulated process through which investment projects are assessed to determine a project's viability. Meanwhile, project selection is the process through which projects are systematically vetted for inclusion in the budget. Many low-income developing countries (LIDCs) and emerging market economies have not put in place sound mechanisms in either of these areas. Given the critical importance of project appraisal and selection for the creation of quality infrastructure, this is an issue of great concern.

Building Strong PFM Foundations to Support Resilient Recovery

Posted by Bonnie Ann Sirois^[1]

The IMF recently reported that a whopping $9 trillion of fiscal support has been deployed globally during the COVID-19 crisis. Direct budget support is estimated at $4.4 trillion, and additional public sector loans and equity injections, guarantees, and other quasi-fiscal operations amount to another $4.6 trillion.[2]  Advanced and emerging market economies account for the vast majority of this support, while about $1 trillion is directed toward developing economies.

France’s “Green Budget” for 2021

Posted by Margaux-Lucrèce Lelong and Claude Wendling^[1]

On September 26, the French government published its first “Green Budget”, as an annex to the  2021 Finance Bill. This event attests to France’s strong commitment, notably under the OECD-led “Paris Collaborative on Green Budgeting” (which France joined in December 2017), to integrate “green” tools into the budget process.

Announcement—IMF Training Course on Fighting Corruption in Sub-Saharan Africa for Government Officials

Posted by Concha Verdugo Yepes^[1]

The Fiscal Affairs Department and Legal Department of the IMF have developed the First Virtual Training Course on Building Institutions to Fight Corruption in Sub-Saharan Africa (SSA) with support from the Africa Training Institute (ATI). The course, which is open to government officials, will be delivered at the ATI during November 16-20, 2020, from 7am-11am (EDT). It will be conducted in English with simultaneous interpretation in French and Portuguese.